Starting a business involves planning, making financial decisions and completing a series of legal activities. The ten steps below, from writing a business plan to understanding employer responsibilities, can help you plan, prepare and manage your new business. You can read all of these steps in full detail on the Small Business Administration website.
10 Steps to Start Your Business
- Write a business plan. Map out how you will start and run your business successfully.
- Get business assistance and training. Take advantage of available tools and free training to help you prepare and plan.
- Choose a business location. Select a customer-friendly location and get informed of zoning laws.
- Finance your business. Find government-backed loans and research grants.
- Determine the legal structure of your business. Decide which form of ownership is best for you: sole proprietorship, partnership, limited liability company, corporation, S corporation, nonprofit or cooperative.
- Register a business name.
- Get a Tax ID number. Learn which tax ID number you’ll need to obtain from the IRS.
- Register for state and local taxes. Register with your state to obtain your tax ID number, worker’s compensation and unemployment & disability insurance.
- Obtain business licenses and permits. Get a list of federal, state and local permits and licenses you will need.
- Understand employer responsibilities. Learn the legal steps you need to take before you can hire employees.