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.

What qualities do someone has to posses before he or she can regarded as an successful entrepreneur? Being an entrepreneur is more than just starting a business. It is about having attitude and the drive to succeed in business. All successful entrepreneurs have a similar way of thinking and posses several key personal qualities that made them so successful in business.

All successful entrepreneurs have the following qualities:

• The main quality is “inner drive” to succeed. They are very ambitious people and always try to implement their ambitions in life. Entrepreneurs set real goals for themselves and is focused and determined to achieve their goals and try to achieve them regardless of the obstacles they see on their way.
• Entrepreneurs have a really strong belief in themselves. Every successful entrepreneur believes completely in their ability to achieve any goal. Their self optimism can often been seen by others as flamboyance or arrogance but entrepreneurs are just too focus and don’t spend too much time thinking about smbd’s un-constructive criticism.
• Successful entrepreneurs always search for new business ideas and innovation. All entrepreneurs have passionate desire to do things better and to improve their products or service. They are constantly looking for new ways to improve.
• They have a spirit of competition in their blood. Successful entrepreneurs thrive on competition. The only way to reach their goals and live up to their self-imposed high standard is to compete with other successful businesses.
• And lastly, they are highly motivated and energetic. Entrepreneurs are always on the move, full of energy and highly motivated. They are driven to succeed and have abundance of self-motivation.

All successful entrepreneurs know how to generate business ideas:

1. They always read and study as many things as possible. You need to investigate specific information of what you are going to sell. For example, if you want to be involved in real estate business, you have to study everything about your subject matter.
2. After you have done your study, think hard about the solution to that specific problem. Then stop and relax. Let your subconscious mind works for you. The idea or solution will come to you at much unexpected moment. For me, idea or solution comes to me when sleeping.
3. Refine your raw idea until it is up to your satisfaction. You can always do your own research on the raw idea by asking questions to target market to test the feasibility of the idea and how to improve the idea further.

“The best way to get something done is to begin.”

“It does not matter how slowly you go, so long as you do not stop.”
Confucius

Welcome, Entrepreneur! Even if you do not have your own business now, but you want to organize something, you already are an entrepreneur in your heart.
If you do the first steps into the world of business, and you are looking for information “how to open a business” or “where to start”, then this article is for you! It has lots of free and most useful information that will allow you to start your own business successfully:

The main questions in business creation are:
1. The algorithm that will successfully open a business in any area of business and show what to do when it seems that it does not work and all efforts in vain
2. How to start a business and what steps are necessary to pass.
3. How to save time and money in establishing your own businesses.
4. How to create a business in accordance with the laws of business and make it competitive

Two major challenges confronting aspiring entrepreneurs are:
1. Where can I find an interesting business idea

2. Where to get money for this idea

“To solve a problem or reach a goal, you don’t need to know all the answers in advance.
But, you must have a clear idea of the problem or the goal you want to reach.”
~W. Clement Stone~

Usually you can see such a situation:

• If a someone has money he thinks: “The hardest part is to invent the idea, and calculate it to the last detail.”
• If there is no money, but there are ideas, thoughts following lines: “I have a lot of ideas in my head, one is more better and more profitable then the other. Ah, if I had money, I would open a business!”
• The third situation is when there is no ideas, and no money: “I wish I had enough money for…”

If a person thinks that its task is difficult, then so it would be. And if you will diligently seek answers to this questions, then after a while you will see (unless of course you will) that most of the problems are solvable, and the organization of the business can be a struggle for a place under the sun, and the game and the competitors in this game can become assistants.

Initially a very good option might be to create a home business. Start creating a home business working in parallel on the previous work. This will allow you to avoid the difficult transitional and painless period while starting a new business.
Set a goal, eventually, create more cash flow (income). Your first business – Your first school. Remember that. Do not grasp the grandiose projects until you have created 2 or 3 small, but quite profitable business.

“The secret to productive goal setting is in establishing clearly defined goals,
writing them down and then focusing on them several times a day
with words, pictures and emotions as if we’ve already achieved them.”

~Denis Waitley~

It must be remembered, any source of income, if you do not know the necessary laws of business and life, you can lose through no fault of your reasons. Therefore it is necessary not only to create a business and have a good income, but also receive financial literacy, as well as the necessary knowledge about life laws.

Financial literacy can help you in case of loss of your business to get back quickly on your feet. It plays a lesser role than in school. Be sure to read the following books: “Rich Dad Poor Dad” by R. Kiyosaki and Napoleon Hill’s “Think and Grow Rich”
Laws of Life will help you to avoid the bankruptcy of your cause and in time to take the necessary steps to overcome the critical situations.
In fact, at the initial stage to create a business you need: objective, a clear plan of action and knowledge of how to do it. The selection of business ideas is also an important step.
The best business idea is the idea that you have invented yourself. The already-made idea is often difficult to apply in practice. The reason is that each individual has its own perception of reality and it may be difficult to copy alien business idea because of the peculiarities of your perception of reality. Each person has their perception of the world and their ability to certain types of activities.
Never give up because of any failure, just find the cause of failure. This is the only way to succeed. Most successful people achieved success in one step up of defeat.
Get your act right now. Write on paper, your goals and desires. This will be your first step.
Remember, there always is the opportunity to start a business with very low initial investment, or even without any investment. Often, the initial capital is even harmful, because it creates a temptation to rely on him. But we should rely only on ourselves.
If you do not have the money to build your business and not even the very idea of business, which would you like and which provides a good potential profit, I suggest you the following. Continue to work on your job, learn the necessary literature to build your business and putting off 10% of their wages. This money will help you to build your business. You still live, but you will have a small start-up capital to start your business. During the year you put 10% of  your salary and study information that will help you to build your business. You’ll learn a lot during the year. In addition, you will learn how to create a business with little investment. Here you’ll need your little savings that you patiently postponed.
Everything is in your hands. Without training, the chances of creating successful and sustainable business are dramatically reduced. You do not need a lot of money for the first start, you’ll need knowledge.
Note another important point, perhaps the most important. Successful businessmen bring benefits that meet their needs. If you start a business just because of money, you stepped a very difficult path. On the first hand, a business must necessarily makes you happy, on the second, your business should be resolved the problem of other people. You’ll help them and for that people will pay you money. In this case, your business will be successful and many people will thank you. It’s worth a lot.
The success of any business depends entirely on how potential customers evaluate the value of your products or services. Each potential client must clearly see all the benefits that your proposal promise to them. And if your potential customers will not see their benefits, they will go to your competitors, who will be pleased to pick your clients up.

“Success usuallly comes to those who are too busy to be looking for it.”
~Henry David Thoreau~

There are many ways to tie a tie. Every guy should know how to tie a tie. But depending on your personal style, body type, preferred shirt style, and up coming occasion the Windsor, Half windsor or Pratt knot may work better for you. The only way to know is to try them all and to see which one works best for you.

Men look good in ties. So do many women. Starting with these step-by-step instructions and some patience, you can become proficient at tying your tie for maximum class, professionalism, and style.

From jacket to shoes everything counts. One of the more essential pieces of apparel you’ll ever choose is your neck tie. Neck ties speak loudly in regard to men’s (or women’s) style. Besides, it’s right there beneath the chin, and is often the first object people acknowledge, even in front of your face!

Here are few tested simple ways to tie a tie:

1. Four-in-hand knot is the easiest to learn among the four most commonly used necktie knots.

2. Half-windsor is a symmetric knot and it is suitable for most occasions.

3. Windsor knot is symmetric, large necktie knot that looks elegant on wide collar shirts.

4. Pratt knot is a symmetric necktie knot with an average size and is suitable for most shirts and occasions.

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.

Though part of your overall plan, you’ll need to select a location, decide on a business structure, and obtain the necessary licenses and permits. In addition, determining which financing options will meet your short-term needs and long-term goals is crucial.

1. You are your own boss – Sick of your manager giving you a hard time in a job you loath? If you start up your own business, the only person you have to answer to is yourself. Being your own boss gives you the freedom to do things your way and implement your own plans. Of course, you live or die by your decisions, but that’s what’s good about it isn’t it?
2. Fame and recognition – It is the opinion of some that this is an important reason why people start companies.
3. You get to do what you’re interested in – If you are stuck behind a desk selling insurance over the phone to uninterested pensioners, the chances are that you would rather be doing something else. The good thing about being an entrepreneur is that you choose what kind of firm you start up, and where. So, providing that you’ve done your research properly and there is a gap in the market, you can turn a hobby or interest into a profitable enterprise.
4. You participate in all aspects of a business - there is nothing more exciting than to be broadly involved in the operation of a business. The entrepreneur helps conceive the product or service, helps design it, goes out and gets orders, makes sure the factory runs well, helps the customer put it into operation, and finally sees the effect that all of this has on the profits of the firm.
5. Meeting your own targets can be a huge motivation to work hard and drive the business forward. Start your own firm and you get to set and meet your own deadlines.
6. Get creative – If you have considered going it alone, you will have thought out how you would do things your way. Being an entrepreneur gives you the freedom to express yourself and develop your concept in any way you choose. Of course, there are always financial constraints, but the ability to be as creative as you like is far more appealing than a one-dimensional job that a monkey could do one-handed.
7. Joy of winning – Entrepreneurs are the ultimate achievers. They like to win. Starting a company is a good way to satisfy the achievement instinct. Starting a new company, working for a new company, being involved in any way with a new company is just plain fun. It is satisfying and exciting. We spend more hours at our job than at anything else we do. Why shouldn’t we enjoy it?
8. It’s not that hard to do – The news is full of stories about the amount of red tape and taxes that small firms have to face on a daily basis. However, over the past few years, several measures have been introduced that should make it easier to go it alone. From the Small Firms Loan Guarantee to various inner-city projects, the government certainly can’t be accused of doing absolutely nothing for budding entrepreneurs. With the Prince’s Trust, Shell LiveWIRE and other support organisations also up and running, you should be able to secure the help and funding needed to get you started.
9. Personal financial gain – business can be very profitable! If you think that it’s just large corporations that make big profits, you would be wrong. There are countless stories of entrepreneurs hitting on a great idea, exploiting it well and being well on their way to their first million by the end of the year. Although the startup process can be tough, with long hours and little money not uncommon, if you run your business well, the rewards can be huge. Gains can come more quickly and can be much greater than when working for someone else. For most people becoming an entrepreneur is the only way available to make a lot of money. And, from a purely selfish point of view, you will get most of the profits yourself.
10. You can have a second career – Of course, if you don’t fancy giving up a regular income, you can always get the best of both worlds and stay as an employee while running your own firm. Although juggling the two can be tricky, having a successful sideline should be very profitable option. Do something that you are interested in and go for it.

Whether you’re starting new business on the side while still employed elsewhere, a student or homemaker looking for extra income, or unemployed and trying to figure out what to do, there are plenty of opportunities for you to start up a side business inexpensively. It’s unlikely any of these will make you a living in the first few months, but they all have the potential to grow into full-time businesses. So what are you waiting for?

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.