12 Tips for Starting Up a Business
- Decide on the name of your business.
- Research the County DBA files to make sure the name you have picked out is available.
- Fill out the DBA application. This can be downloaded from the internet at your counties website along with the directions. The cost is approximately $14.00.
- Open a Business checking account. It is very important to keep your personal finances separate from your business finances. You will need the DBA certificate from the county to open this account. It can be titled as:John Smith
Dba Smith Window InstallationOr, just Smith Window InstallationI prefer using your name and company name, so if any one wrote the check out to you personally you would not have a problem getting it cashed or deposited into your account. Banks have become very careful about only allowing items with the name of the account to be processed through that account.
- Do you need an EIN number? The EIN number is your federal Id number. If you are to have employees, you will need to apply for this number also. If you are only going to be paying non-employees or contract labor, then at this time you do not need an EIN. The EIN application can be found at www.IRS.gov
- If you are selling retail items for other products, you will need to research if you are required to charge sales tax. This can be done at the website of the State Comptrollers website under “Business” and “Sales Tax” If you are required to collect and file sales tax returns, then you can apply on line for that number also.
- Find a good full charge bookkeeping company. Your time needs to be out working and growing you business, not trying to do all the paperwork. Getting a good support time is how you are going to grow and expand you business.
- Purchase an accounting software package or use a bookkeeping company where you set up a weekly, bi-weekly, or monthly appointment to drop off you documents for that period of time at their office and save yourself an additional start up cost of $200.00 to $500.
- Define your business needs. Are you going to want Profit and Loss for different Revenue Centers or just one?
- Set up a 12 month “Budget” and a 5 year “Growth Budget”.
- Work with your bookkeeper to set up your books in QuickBooks.
- Hire a Website Designer to start a small website. Set up a Budget to work with on this project, tell him or her that this is the amount available and stick to it.
I hope theses few tips help you start up your business. Next publication will be about what receipts you need to keep. Defining what a “Receipt” is as per what IRS wants to see if you are every audited.