How to Start a Business

Day in day out, you wake up and go to a job. You are not happy but it pays the bills. You have come to a crossroad in your life and you feel like you should be doing more; you want to do more. You have had an idea for a business for a while or you've had a side hustle for some time but you are afraid to form a company. Thoughts say to you: "What if I form the company and it goes bust?" "What if I can't find any customers?" "What if I can't make it work?" "What if? What if? What if? "

There will always be a “what if”. The key is to go beyond the “what if” and begin. Forming a company by yourself can be a little daunting. You have to pick a name and make sure it doesn't infringe someone else’s trademark, figure out the best entity that suit your needs, figure out your tax structure and accounting methods, decide whether you will have employees and so on. The internet contains a vast array of information but if you don't have a roadmap to help you figure it out, it becomes useless. To help you make sense of the madness, here's a checklist of things you must do when you are forming your own company to be about your boss moves with confidence. 

1. Select and clear the business name to ensure you are not infringing on another company's trademark rights
2. Select the business entity that best suit your needs: Inc, LLC, partnership, etc.
3. Select the tax structure that works best for your current situation: pass through, S-Corp, etc.
4. Form the business by registering with secretary of state or county office depending on the entity you choose
5. Register your business for tax purposes and obtain your EIN
6. Open your business bank account
7. Draft corporate documents such as by-laws, operating agreement, etc.
8. Create custom agreements to hire employees and independent contractors
9. Set up your chart of accounts to track expenses, income and inventory
10. Assess whether you need insurance
11. Obtain any business license, if necessary

Following this checklist will help you form your company on a solid foundation. If you need one-on-one help to figure it all out, contact me to book a Start-up Strategy Session. Don't wait, contact me today at Eldonie@masonfirmllc.com or 732-626-6402 so you can be about your boss moves for 2020! And remember start-up expenses incurred in 2019 will be deducted in 2020 - the time is now!