11 Steps to Starting a Business

If you click at SBA on the webpage of www.Score.org, you will find the following 10 steps to starting your business plus much more. I have added step 11 because as an accountant, I believe it is key to any successful business.

  1. Conduct market research. Just because you like your product or service, it does not mean it will sell. The Internet will be your best ally to find statistical data.
  2. Write your business plan. Score will show you two templates that are rather easy to complete. You can use either one.
  3. Fund your business. You may not have enough money to start a business. However, there are plenty of people with money who will fund you if your business plan gives them confidence.
  4. Pick your business location. It may be your home, especially for services, offering lots of financial benefits.
  5. Choose your business structure: Sole proprietorship, S corporation, C corporation, partnership, non-profit, or benefit or B Corp.
  6. Choose your business name. It may be your own name or a fictitious one. Remember to register it with your state.
  7. Register your business with your your state and the IRS (Internal Revenue Service).
  8. Get federal and state ID’s, including workers compensation.
  9. Apply for licenses and permits. Even home-based businesses require licenses and permits.
  10. Open a business bank account. This will give you lot of peace of mind, especially when preparing tax returns.
  11. Start with a computerized accounting system.For instance, QuickBooks Online is inexpensive and easy to run. Start with a well designed chart of accounts, preferably with account numbers that follow standard accounting practices. As an accountant, I know how important this is for your business growth and compliance with local, state and federal entities.

If a non-profit, using the Unified Chart of Accounts (UCOA) could save you time and money when preparing the annual tax return, known as Form 990. It is found at the following link:

https://4good.org/bill-levis/unified-chart-of-accounts-ucoa