As of 2023, there are over 150 million startups in the world. Starting a business can be exciting and a bit daunting. Many entrepreneurs or employees who worked remotely during the last few years are still seeing the need for businesses that may not have existed before the pandemic. But for a dream to manifest into a successful business, certain considerations and actions need to be completed. To cover all the bases, use this business startup checklist for 2023. Though state laws, business regulations, and municipal zoning could differ with location, these considerations will get you started on launching your business successfully.
Number One: Decide on Your Business Structure and Name
Businesses can fall into one of four structures, and it is important to decide which is best for you and your goals.
Sole Proprietorship
A sole proprietorship is the simplest business structure. It is owned and operated by one person. The business owner has complete control and keeps all profits. However, they also have unlimited personal liability for all debts and obligations.
Partnership
A partnership is owned by two or more people. The partners share control of the business and divide profits evenly based on ownership percentage. General partners have unlimited liability, while limited partners have liability limited to their investment.
Corporation
A corporation is a legal entity separate from its owners. It can sell stock and is owned by shareholders. Shareholders have limited liability. Corporations require more formal record-keeping and are regulated by the state.
Limited Liability (LLC)
An LLC combines aspects of partnerships and corporations. Members enjoy limited personal liability like a corporation. Profits and management structure are flexible like a partnership. LLCs require less record-keeping than corporations.
Once you have decided on the structure, you should register your trade name, that is what you are calling your business. You want to be sure the name is not being used by anyone else in the state. As a business owner, you will need a Federal Employer Identification Number (FIEN). You can get this number from the IRS, and it is a must-have before opening a bank account, paying taxes, issuing payroll, etc.
Number Two: Create a Business Plan
Not only does a business plan map out the way you plan for your business startup to work, but it is also needed if you are trying to procure financing. You can always revise the plan as you go, once you have determined what works and what doesn’t. Open your bank account and discuss with your banker your plans for your business startup, and any financing you need or may need in the future.
It’s also a good idea to get some business cards printed as you may encounter chances to discuss and promote your business even before you successfully launch your startup.
Number Three: Get the Required Permits and Licenses
Federal licenses are required for some businesses. Check for your particular business to see if one is required. For example, a trucking or construction company might need to be licensed by the Department of Transportation, and a food manufacturer requires licensing from the Food and Drug Administration.
State licenses, and sometimes testing, are required for many businesses and occupations. From construction to cosmetology, real estate to insurance, agents in these fields require special licensing from the state. Each state has its own set of regulations, so be sure to check yours.
You may also need a sales tax permit if you sell merchandise. Businesses that provide services only, may not need a sales tax permit, depending on the state.
Other permits or licenses
You should check with your county or municipality to determine if you require city or county permits. Sometimes this depends on the location or type of business.
Certain businesses require special permits, such as food service, liquor or firearms sales, and lottery tickets.
Number Four: Work With an Insurance Agent
Protecting yourself, your business, and your employees is an important step in your business startup. Find a responsive agent who can guide you through the types of insurance you require for your particular business. Some things you may need:
Business insurance that includes everything in your business, including vehicles and property. Working with an agent who can provide all the coverage you require makes it easier and less confusing. Plus, it may reduce your premium cost.
If you are leasing space, be sure that damage within the rental unit is covered.
Worker’s Compensation Insurance is required if you have employees. Some states offer a designated provider, while others will let you procure a policy on your own.
If you provide a product, you will need to have product liability insurance in case a customer becomes injured or ill from your product.
Number Five: Get a Website
Getting a website is crucial for any business startup in 2023. The sooner you are up and running, the more credible your business becomes, the faster your name becomes recognized, and the quicker you reach potential clients. Register your domain name. NameSilo makes registering and managing your domain a quick and easy process. Having your website prepared to accommodate this autonomy can save you both time and money. While registering your domain name, be sure to purchase website hosting.
A Final Word
Congratulations on your decision to start your business in 2023! The best advice for business startups in 2023 is to simply get started today. Lean on the people who can help and support you. Find a mentor who can give you support, knowledge, and confidence in making decisions. Finally, hire employees who share your vision. And be sure to rely upon a reliable registrar like NameSilo when you register your domain name and host your site. Partner with businesses that make preparing and operating your new startup easier and less stressful. With upfront preparation, your business startup in 2023 can be successful and profitable for years to come.
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