Business Formation
A GUIDE TO FORMING YOUR BUSINESS WITHOUT MISSING ANYTHING.
1. Define the business.
The first step in starting any business is to define what the business will be.
What goods or services will the business provide?
What needs does the business address?
Who will be the target market for the business?
Answering these questions will give you a good foundation on which to build your business.
2. Research the industry.
Once you have defined your business, you need to research the industry in which it will operate.
What is the size of the industry?
What are the major players in the industry?
What trends are affecting the industry?
This research will help you to understand the competitive landscape in which your business will operate.
3. Develop a business plan.
After you have defined your business and researched the industry, you need to develop a business plan. This document will outline your:
BUSINESS GOALS
BUSINESS STRATEGIES
MARKETING PLANS
It will also serve as a roadmap for how you plan to grow your business.
4. Choose a legal structure.
One of the most important decisions you will make when starting a business is choosing its legal structure. The most common structures are
SOLE PROPRIETORSHIPS
LIMITED LIABILITY COMPANIES
CORPORATIONS
Each has its own advantages and disadvantages, so it is important to choose one that best suits your needs.
5. Register your business.
Once you have chosen a legal structure for your business, you need to register it with the state in which it will operate. This process typically involves filing articles of incorporation or organization with the Secretary of State’s office. You may also need to obtain a business license from your local municipality.
Company Formations Advice
Another company formation may be a partnership with two or more people operating the company. There are several different partnerships to consider, limited or general are the most common. You want to select others with the same business goals and someone who you can work well with and willing to take on the responsibilities of the financial burden and be held accountable.
Some partnerships are set up as Limited Liability Companies (LLCs). The company formation also gives you an umbrella of liability protection.
Seek advice before setting up any form of partnership, an oral agreement would not be recommended.
Incorporating your business may be another option, but this can be complex. There are much more costs involved than the other two options. This is where you have a stockholder or a group of stockholders controlling the company. This company formation holds annual and regular scheduled meetings of stockholders for the board of directors where the minutes of the meetings must be documented outlining their business decisions. Corporations are normally set up as C or S Corporations.
You ask yourself which company formation is made simple, quick, and inexpensive.
Take the necessary steps in seeking professional help.
Let’s get something started together!