Before You Begin.

1. Preparation. Starting a successful business requires a great deal of preparation.

2. Planning. It helps to begin with a plan. A business plan is a blueprint of every aspect of your business. Sales, marketing, advertising, promotion and location are just some of the aspects of creating a plan.

3. Select Your Business Name. Choose a business name. A sole proprietor may conduct business under their own name. When you are ready to select a business name or assumed business name for your business, check for name availability.

4. Choose a business structure. Select a business entity type from the following list for a brief overview of the principal types of legal business structures. A legal representative and accountant should be consulted before making a determination as to the type of business entity to form.

• Sole Proprietorship
• Corporation
• Nonprofit
• Limited Liability Company
• Limited Partnership
• General Partnership
• Limited Liability Partnership

5. Register Your Business. Ongoing Registration Requirements. Now that you’ve established your business and fulfilled the initial requirements, you will want to make sure that you keep your reporting and registration obligations current.

6. Understanding Tax Obligations. Understanding your tax obligations is an important consideration for any business. Learn about requirements to report personal property to your county assessor’s office. Also check on other taxes that may apply to your business.

7. Check Licenses. Many occupations and business activities require special licenses, permits, or certifications from state agencies or boards. Check with your city and county government to determine the license, permit, or zoning requirements for your area. Many occupational or business licenses require annual renewal. Check with the specific licensing agency for specific requirements.

8. Protect your idea. Learn about registering Patents, Copyrights, Trademarks, and Service Marks.

9. Check with the Department of Environmental Quality. Some business activities will require you to contact the Department of Environmental Quality.

When you are thinking of ideas to start your own business, make sure you choose an area of your interest as you will be self motivated and also enjoy going about the setup process.

Involve people who are close to you and can be trusted. Apart from the support they provide, you can also take necessary inputs and any other monetary or technical help from them in starting your own business.

When you decide to start new business, there are a lot of important decisions to make and there are many rules that must be addressed and procedures that must be done. While there is no single source for all filing requirements, the following 7 steps will help you in starting new business.

1. Select your business name
2. Begin with a business plan
3. Choose a business structure
4. Register your business
5. Tax obligations
6. Check licenses
7. Protect your idea

Select your business name

Choose a business name. Ideally, your business name should convey the expertise, value and uniqueness of the product or service you’ve developed. A sole proprietor may conduct business under their own name or they may choose to use an Assumed Business Name.

Begin with a business plan

Business plans are working documents that strategically guide your business, and are invaluable for obtaining financial support and backing. A business plan is a checkpoint of every aspect of your business. Sales, marketing, advertising, promotion and location are just some of the aspects of creating a plan.

Choose a business structure

Select a business entity type from the following list for a brief overview of the principal types of legal business structures available. A legal representative and accountant should be consulted before making a determination as to the type of business entity to form.

• Sole Proprietorship
• Corporation
• Nonprofit
• Limited Liability Company
• Limited Partnership
• General Partnership
• Limited Liability Partnership

Register Your Business

You can do it on your state’s business site. All you have to do is fill in your info and they do all of the filing with the state for you and they just mail you your documents that you put up in a safe place for your records.

Tax Obligations

Understanding your tax obligations is an important consideration for any business. Learn about requirements to report personal property to your county assessor’s office. You will also need to check on other taxes that may apply to your business.

Check Licenses

Many occupations and business activities require special licenses, permits, or certifications from state agencies or boards. Cities and counties may also require businesses to have a license or permit in order to operate. Please check with your city and county government to determine the license, permit, or zoning requirements for your area.

Protect your idea

Learn about registering Patents, Copyrights, Trademarks, and Service Marks. Some business activities will require you to contact the Department of Environmental Quality.

Determine if you comply with the Americans with Disabilities Act (ADA). Many businesses are subject to this federal law that prohibits discrimination against disabled persons.

Many occupational or business licenses require annual renewal. Please check with the specific licensing agency for specific requirements.

Business plans today no longer need the 20 to 40 pages prescribed by classic planners. The shorter it is, the better chance it has of being read. It is recommended devoting no more than five pages to income, cash flow and balance sheets. And don’t have any numbers in there you can’t explain instantaneously.

While investors want to see action, they don’t want to work for it. A modern business plan is more likely to be a modest deck of slick, colorful presentation slides than a thick stack of white paper. Digital slides are easier to distribute to a dispersed audience via e-mail and to present to large groups on an overhead projector.

Business plans today still contain the same basic elements they always have. Typically, most have an executive summary, a marketing plan, a management team description and financials (income, cash-flow and balance sheet projections).

Those who are considering lending your small business money or investing will want to know how you intend to reach your target market and attain the market share you feel you can attain, which you’ve already discussed in the Market Analysis section of your business plan. Your marketing plan will help them understand that.

If it applies to your business, outline your sales strategy in this section when you are writing a business plan. For example, will there be a sales force? Will sales training be provided? Will your sales team be given incentives to encourage them to increase sales and meet or exceed their goals?

It depends on the case, but usually it’s the cash flow analysis and specific implementation details.

Cash flow is both vital to a company and hard to follow. Cash is usually misunderstood as profits, and they are different. Profits don’t guarantee cash in the bank. Lots of profitable companies go under because of cash flow problems. It just isn’t intuitive.

Implementation details are what make things happen. Your brilliant strategies and beautifully formatted planning documents are just theory unless you assign responsibilities, with dates and budgets, follow up with those responsible, and track results. Business plans are really about getting results and improving your company.

Like many entrepreneurs, you can learn to write a business plan from a book. That produces a plan that is accurate in its basic aim: to describe a business model that would allow you to build a successful enterprise. Also it can be helpful to view real sample business plans to get ideas for your own business plan.

Success in business is never automatic. It isn’t strictly based on luck – although a little never hurts. It depends primarily on the owner’s foresight and organization. Even then, of course, there are no guarantees.

Like any business venture, a home-based business requires an investment of time, energy and resources.

The tough economy has put many companies out of business. However, it has also created a new generation of entrepreneurs: the ‘Reluctant Entrepreneur.’ Many new entrepreneurs are starting their own business out of necessity as a result of layoffs and being unable to get hired in their chosen field.

The usual paradigm of an entrepreneur is one who wants to work for himself or herself and create a business from scratch. In contrast, the reluctant entrepreneur was once happy working for someone else, as long as he or she received a regular paycheck and health benefits. However, this new class of entrepreneur is forming home-based businesses as a survival response,

When running a business you’re going to be in control of everything that is going on even though you’re going to have the responsibility of the business it feels great to know that no one can tell you what to do or what not to do. When you are in a job people can tell you to go there and here and you have to do it because if not you would probably get fired. Many of us are tricked into believing that we have rights when we are working in our job but the reality of it is that you will always worry and be cautious of doing something wrong because you might get fired.

If you fit into this class, you are not alone. Here is some advice to help give you encouragement as you grow your new business:

• Create a good business plan – And change it often. Business plans are a great way to keep you on track of what you want to accomplish. However, remember that change is the only constant, so review your plan regularly and update it as needed.
• Grow your contacts network – An entrepreneur’s success can be measured by the number of contacts he or she has. You must generate your own business, and simply hanging a shingle is not sufficient. Call your old boss. Call your friends. Call everyone you know to start drumming up business. And get involved with networking events to extend your contact base.
• Be persistent – Did you encounter a potential client who said no? Keep trying. A successful entrepreneur is persistent and doesn’t let a single decline stop him from trying again.

Is Entrepreneurship For You?

In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business – but you can improve your chances of success with good planning, preparation, and insight. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business.

Just because you formed a business out of necessity doesn’t mean you will fail or have a tough time succeeding. Remember, you are doing what you love. With that in mind, you will find the way to make your business succeed.

STEP 1 Business Ideas

To start a business you will need to choose or create a business idea. While this is an obvious step many people who want their own business don’t have an idea, just the desire to be an entrepreneur. For the budding entrepreneur, there are many options; buying a franchise or an existing business, or looking to others for ideas for a start-up business. Once you have decided on the business you wish to start, then the real work begins.

STEP 2 Business Plan

Writing a business plan is your next and most important step, this is how you and others will evaluate your business. When seeking financing the investors or lenders will want to read your plan before they supply you with funding. If you’re financing the business yourself, you will still want to have a written plan to develop business strategies and financial projections. A key element within the business plan is the marketing plan, which explains marketing strategies that will be used to advertise and promote the products or services. The goal setting steps of the plan will help you to analyze the success of the business in future years and clearly illustrate the capital needed to operate the company to break-even.

STEP 3 Financing

With your business plan in hand, you are ready to go find yourself some capital. Most small businesses have three options for financing: friends & family, investors or bank loans. Each of these options has different considerations for the business. Investors and even friends & family usually want ownership and control of their portion of the business. Bank loans burden the business with an additional expense of the loan payment, which can erode the business profits.

STEP 4 Getting started

You’ve got the plan, the money and the enthusiasm; you’re ready, right? Not yet, as with everything you need to take the legal issues into consideration. First you should choose a legal structure: Sole Proprietorship, Partnership, or Corporation. Your financing decisions will have an effect on what legal structure you choose. Now you can file with the state to incorporate and obtain a federal Identification number.

STEP 5 Opening the Doors

Okay, it’s time to get on the road to making some money; this of course means spending money. Where are you going to run your business? Will a home office do or is commercial space needed to service your customers? Do you need to hire employees to help you run the business? What are your bookkeeping needs, do you need an accountant? Finally, who could forget taxes, what taxes do you have to pay and collect? Now that your business is through the start-up phase, you can now look forward to the issues of managing a small business.

Sourse: businesstown

Contrary to popular belief, you don’t need a huge outlay of cash – or any cash at all – to launch new business. Here’s how to start new business:

1. Stay at home. Renting office space is expensive and unnecessary during the first several months while starting new business. If your home is not conducive to concentration, create a movable office by working in coffee shops or other locations with free wi-fi. For professional meeting arrangements, pick a reasonably priced, but nice, restaurant for lunch. If you absolutely need an office, see if your town or city’s economic development office provides low-rent incubator space for new businesses.
2. Learn financials. It is helpful to know how to read financial statements even if you plan on hiring a bookkeeper or accountant when your business takes off. Self educate through the web. Learn the basics of balance sheets and income statements.
3. Hiring employees is another expense you can avoid in the start up phase of your business. If you don’t have cash to hire experts, but desperately need a graphic artist, writer or web designer, see if there is a pool of students you can draw from a local college or university internship program. Or, learn to do it yourself until you are making enough money in your business to hire a professional.
4. Once you have a website, let all your friends, neighbors and family know you have started a business (and include a link to your site); encourage them to forward the news on to their friends and business associates.
5. Become your own PR person. Learn the basics of writing a press release and send out an announcement to your local newspaper and trade publication about your new business. Post helpful advice (just don’t blatantly self promote) on blogs or online networking groups about your area of expertise.

And remember: being in business for yourself means starting early in the morning, working late into the evening most days, spending long Saturdays and busy Sunday afternoons with your new “baby.” It’s going without a vacation because there is no one else to operate and run the business when one is away.

Now, after reading all of this, is it worth it, this “going into business for yourself?” The answer is definitely “YES!” as long as you know what is needed, how to fill the need, and can fill it, and have the energy and desire to get the job done.

Forming a non-profit corporation is much like creating a regular corporation, except that non-profits have to take the extra steps of applying for tax-exempt status with the IRS and their state tax division. Here is a business technology about what you need to do:

1. Obtain nonprofit materials from your state’s corporate filing office.
2. Choose an available business name that meets the requirements of state law.
3. File formal paperwork, usually called “articles of incorporation,” and pay a small filing fee (typically $30 or $40).
4. Apply for your federal and state tax exemptions.
5. Create corporate “bylaws,” which set out the operating rules for your non-profit corporation.
6. Appoint the initial directors. (In some states you must choose your initial directors before you file your articles, because you must list their names in the document.)
7. Hold the first meeting of the board of directors.
8. Obtain licenses and permits that may be required for your corporation.

Contact your state’s corporations division

Your state’s corporate filing division, usually part of the Secretary or Department of State’s office, will often supply a packet of nonprofit materials that will be immensely helpful to you in forming your nonprofit.

This packet should include sample or fill-in-the blank articles of incorporation and your state’s nonprofit corporation laws. It should also contain a filing fee schedule, as well as forms and instructions for checking the availability of your proposed business name. Contact your state’s corporate filing office to obtain this packet.

Choose a business name

Before you form your nonprofit corporation, you need to decide on a name that complies with the rules of your state’s corporate filing office. The information packet you receive from the filing office should contain your state’s rules, but the following guidelines commonly apply:

• The name of your nonprofit cannot be the same as the name of another corporation on file with the corporations division.
• The name must end with a corporate designator, such as “Corporation,” “Incorporated,” “Limited,” or “Corp.,” “Inc.” or “Ltd.” (This is required in only about half of the states.)
• The name cannot contain certain words prohibited by the state, such as Bank, Cooperative, Federal, National, United States or Reserve.

Your state’s corporations division can tell you how to find out whether your proposed name is available for your use. Often, for a small fee, you can reserve the name for a short period of time until you file your articles of incorporation.

In addition to confirming that another corporation in your state isn’t already using your proposed name, you must make sure your name won’t violate a trademark owned by another company (in your state or out of state). To do this, you’ll need to conduct a trademark search.

Once you’ve found a legal and available name, you aren’t usually required to file or reserve the name with your state — when you file your articles of incorporation, your nonprofit’s name will be automatically registered.

Prepare and file your articles of incorporation

After you’ve decided on your business name, you must prepare and file “articles of incorporation” with the corporate filing office. This document goes by a different name in a handful of states; your state may instead use the term “articles of organization,” “certificate of incorporation,” “certificate of formation,” or “charter.”

Your state’s corporate filing office will usually provide you with nonprofit articles of incorporation — either a fill-in-the-blank form or a sample on which you can base your articles. Although preparing this document isn’t difficult, you do need to include specific language to ensure that you’ll receive tax-exempt status. Your state’s nonprofit formation packet, if available, may include the required information. If not, or if you need help understanding the requirements, consult a good legal self-help guide such as How to Form a Nonprofit Corporation, by Anthony Mancuso (Nolo), to make sure your articles comply with your state’s nonprofit law.

Apply for your federal 501(c)(3) tax exemption

After the corporate filing office returns a copy of your filed articles, you can submit your federal 501(c)(3) tax exemption application to the IRS. (The IRS requires you to submit a copy of your filed articles with your application.) This is a critical step in the formation of your nonprofit organization since most of the real benefits of being a nonprofit flow from 501(c)(3) tax-exempt status.

To apply for your exemption, you must complete IRS Form 8718, User Fee for Exempt Organization Determination Letter Request, and IRS Package 1023, Application for Recognition of Exemption. For instructions on filling out these forms, read IRS Publication 557, Tax-Exempt Status for Your Organization. (You can obtain all of these items for free by calling 800-TAX-FORM, or you can download them from the IRS website.) If you need a bit of help deciphering the IRS-speak, consider downloading Nolo.com’s plain-English eGuide, Nonprofit Corporations: Qualify for Federal Income Tax Exemption.

After the IRS reviews your application, it will send you a letter indicating that it has approved your nonprofit status, or it might ask you for more information about your organization. The IRS can also deny your application outright. If this happens, see a lawyer who specializes in nonprofits.

Apply for a state tax exemption (if necessary)

In a few states (California, Montana, North Carolina and Pennsylvania), you must complete a separate application to get a state tax exemption. In other states, as long as you file nonprofit articles of incorporation and obtain your federal 501(c)(3) tax-exempt status, your state tax exemption will be automatically granted. In still others, to get your state exemption you must send in a copy of the IRS determination letter that granted your federal exemption. Contact your state tax agency to find out what steps you must take.

Draft corporate bylaws

Next you must create bylaws, the internal rules that govern your nonprofit corporation. Bylaws contain rules and procedures for holding meetings, voting on issues and electing directors and officers. To create bylaws, you can either follow the instructions in a self-help resource or hire a lawyer in your state to draft them for you. Typically, the bylaws are adopted by the corporation’s directors at their first board meeting.

Appoint directors

Directors, who meet and make decisions collectively as the board of directors, have the authority (and responsibility) to manage and run the nonprofit corporation. Many states allow nonprofits to have just one director, but other states require at least three.

The directors should first adopt the bylaws and elect officers — state law usually requires a president, secretary and treasurer, and sometimes a vice president as well. Then, the directors should authorize the newly elected officers to take actions necessary to start the business of the nonprofit — for example, setting up bank accounts and admitting members.

After the meeting is completed, minutes of the meeting should be created and filed in your corporate records book. For more information, see Running your nonprofit corporation.

Obtain licenses and permits

Many businesses, whether operating as for-profit or nonprofit corporations, partnerships or sole proprietorships, are required to obtain state or local licenses and permits before commencing business. So, while you may not be subject to the kind of red tape that entangles profit-making enterprises, you should check with your state department of consumer affairs (or similar state licensing agency) for information concerning state licensing requirements for your type of organization. For instance, a local business license (sometimes called your “tax registration certificate”) may be required for your activities, and if you sell anything to consumers, you’ll need a sales tax permit.