By Lanee’ Blunt
Starting your own businessrequires that you must have a marketable product or service that will reachyour paying customers. Starting a business involves planning, making financialdecisions, and following the steps to ensure that your company has thenecessary licenses, permits, and registrations.
Determine Legal Ownership
You must set up yourbusiness as a legal entity. Decide which form of ownership is best for yourparticular business: sole proprietorship, partnership, Limited LiabilityCompany (LLC), corporation, or S corporation.
Obtain Federal Tax ID
Apply for an employeeidentification number (EIN) with the federal government. Fill-out the necessaryforms and send them back to the federal government and they will return it toyou with your EIN number. You will needthis to hire employees. The EIN is also known as an Employer Tax ID and FormSS-4.
State and Local Taxes
Register with your state fora tax identification number, worker’s compensation, unemployment and disabilityinsurance.
Obtain Licenses and Permits
Get the licenses and permitsthat you need to run your business. Most small businesses will need a generalbusiness licensd or specific operating permits from your state and local government.
SBA: 5 Steps to Registeringyour Business
Inc: How to Prepare toLaunch Your Start Up; Matthew DeLuca; 2011