If you have dreams of being your own boss by opening a business, beginning it can be quite challenging for many different reasons. But once all the necessary paperwork is finished, you'll be able to open your doors and begin seeking clients. The following information provides the basic steps required to set up your business.
Instructions
1. Decide the name of your new business. One way to do this is to determine what services you will be offering, which can help you think of an appropriate name. Create a professional, yet catchy name and slogan, and search your state's database of businesses online to see if the name is available.
2. If you are going to be a sole proprietor, establish a limited liability company, or LLC. This way your company's finances are separate from your personal finances. Go to your state's website and fill out a form to register your new business. Be advised that filing fees may apply.
3. Set up your employer identification number, EIN. Fill out Form SS-4, Application for Employer Identification Number, and mail or fax it to your state's IRS service center.
4. After you receive your EIN, open up a small business checking account at your bank. A minimum deposit may be required.
5. Start finding work. To save money, promote your business through word of mouth or inexpensive advertisements in local newspapers or through social media sites like Facebook, LinkedIn and Twitter.
6. Keep all receipts related to your business expenses and save 15 percent of all profits in case you have to pay taxes at the end of the tax season.
7. For tax purposes, file a Form 1040 Schedule C and use your receipts as proof of deductions.
