When it comes to starting a business—well, dreaming of starting a business—one major aspect is self-development. However, self-development can take many forms, and one of them is just taking time. Taking time to improve, taking time to research, taking time to do research. If you want to be a successful business owner, you absolutely need to do that!
In fact, the first thing to do when starting a business is to do plenty of research rather than just jumping into it. So before you can really get rolling, there’s a crucial first step: registering your business. It might sound a bit dry, but it’s a milestone that officially turns your passion project into a real, live business. It’s not as easy as just saying, “I’m a business owner now.” There’s a lot that goes into this, including registration. So, what exactly do you need to keep in mind?
What’s Your Business Structure?
So, what exactly are you after when it comes to your business? There are several types, and each will have perks (and downsides):
- Sole Proprietorship: Just you at the wheel. Simple, but it means your personal assets are tied up with your business.
- Partnership: You and a buddy (or two) share the driving duties. This is great for collaboration, but make sure you’re all in sync.
- Corporation: More complex, more protection, but lots of regulations. This usually isn’t needed when starting up something small.
- LLC: A sweet spot for many. Since this offers some flexibility and keeps your personal assets safe if bumps happen.
So, which one would be best for you?
You Have to Understand the Taxes
So, it’s not just the business structure that varies, but the taxes do, too—each one has its own tax implications. However, on top of that, you’ll still need to look into the EIN application service when registering your new business. So, needless to say, taxes can be incredibly confusing and maybe too complex. So, it might be worth chatting with a tax advisor to pinpoint the best structure to maximize your benefits.
All the Paperwork
Registering your business means declaring it to the world (and, more importantly, to the government). Technically, even when it comes to a side hustle, you’re supposed to register that too! So, whether this is something on the side or the big deal, it still needs to get registered! So, like what was said above, you’ll need that EIN for business and tax purposes, especially if you plan on building a team.
But of course, your local state office can guide you on the specific licenses and permits you need, depending on what and where your business is. You can’t risk making this mistake; sure, professional services can get pricey, but you absolutely need this to avoid any costly mistakes.
Safeguarding Your Brand
If your business name is a winner, you might want to think about protecting it with a trademark. Seriously, the odds are high that someone else will think of your brand name, even if it’s your actual name. Coincidences or not, it’s not worth the headache dealing with, plus, getting dibs on social media profile names that to brand protection is nice too. This keeps your unique logo, name, and overall brand safe from copycats, securing your identity in the marketplace.
