Steps to Starting a Business

         Preliminary Checklist for Success (Includes Worksheet)

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Most home based businesses will operate as a sole proprietorship.The legal structure you choose will depend on a number of personal and financial factors.

There are three basic legal structures for consideration:

• Sole Proprietorship- This is the simplest form of business structure.
• Partnership - Ownership is shared between two or more partners
• Corporation - By far the most complicated legal business structure.

A good business name will identify what your business does. Give it careful thought, and select a couple of possibilities. You cannot use a name that's already in use. If the name you choose does not include your full legal name (e.g. Annie Oakley's Sure-Shot Entertainment Services), then you may be required to register for a "fictitious name".

Contact your state office...most now have online registration. You can find out if your desired name is available, and register it online. Fees will vary, but usually cost between $10 and $100. Here's a listing of Secretary of State Offices by State. The Secretary of State is usually responsible for business registrations. (Also, check with your local county clerk, to see if the name you've chosen is being used locally.)

Most states require you file your fictitious business name with the County Clerk, and publish a "fictitious business name statement", then file an affidavit that it was published with your county clerk.

You will be conducting business from your home, therefore, depending on your location you may or may not be required to obtain a license or permit. (This is one of the most important steps to starting a business, because if a license or permit is required, and you operate without one, there can be heavy fines imposed.)

• Make sure you are in compliance with all local zoning ordinances, land use restrictions and other regulations regarding running a business out of your home.
• Your state, county and local jurisdiction will have their own requirements.

  Find out what is required where you live, by calling your city or county clerk's office. If a license is required, it's a matter of filling out a simple form and paying a small fee. Depending on the business you've chosen, there may be Federal requirements as well.

Get Your Resale Tax Number

• If you're going to sell hard goods, like books or t-shirts, you will need to apply for a sales and use tax seller's permit. You register with your state's Department of Revenue-Sales Tax Division. Find your state's department of revenue online, or in your phone book listed under State Department of Revenue.

6. Obtain an Employer ID Number (EIN)

A quiet space is best, it can be anywhere you are comfortable. You'll need a few basics...for starters, we recommend:

• A computer with a printer. (We highly recommend a high speed internet connection.)
• A very comfortable chair
• A desk or table
• File storage area-(You can use cardboard file storage boxes to start.)
• A good accounting software program- We like Quickbooks, but there are other good ones available.
• A fax is handy-(We like the "all-in-one" variety: fax/printer/scanner.)
• A telephone- (We've found having one with a speaker is very handy or if you prefer, a headset is also good. You want to be able to have your hands free, and not cramp your neck, holding a phone while you're working.)
• Contact your insurance agent: Determine whether your home owners insurance will cover your business. You may need additional coverage if it doesn't.(Be sure to Ask about liability insurance.) 

Follow these simple steps to starting a business from home, and you will be well on your way to a successful way to make money!

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