10 Easy Steps To Take If Opening A New Business

Published Thursday, March 12, 2015 at: 7:00 AM EDT

Starting a business involves planning, making key financial decisions, and completing a series of legal changes. As prepared by the Small Business Administration (SBA), these 10 easy steps can help you plan, prepare and manage your business:

Step 1: Write a Business Plan. Use the tools and resources that are offered by the SBA to create a business plan. A written guide prepared with help from the SBA will help you map out how you will start and run your business successfully.

Step 2: Get Business Assistance and Training. Take advantage of the SBA’s free training and counseling services, from preparing a business plan and securing financing, to expanding or relocating a business.

Step 3: Choose a Business Location. Get advice on how to select a customer-friendly location and comply with zoning laws.

Step 4: Finance Your Business. Find government-backed loans, venture capital, and research grants to help you get started.

Step 5: Determine the Legal Structure of Your Business. Decide which form of ownership is best for you: sole proprietorship, partnership, limited liability company (LLC), corporation, S corporation, nonprofit, or cooperative. It’s wise to consult an attorney and an accountant before making a final decision on the legal structure of the business you plan to open.

Step 6: Register a Business Name ("Doing Business As"). Register your business name with your state government.

Step 7: Get a Tax Identification Number. Learn which tax identification number you'll need to obtain from the IRS and your state revenue agency.

Step 8: Register for State and Local Taxes. Register with your state to obtain a tax identification number, workers' compensation, and unemployment and disability insurance.

Step 9: Obtain Business Licenses and Permits. Get a list of federal, state, and local licenses and permits required for your business.

Step 10: Understand Employer Responsibilities. Learn the legal steps you need to take to hire employees.

The SBA also points out that a number of programs are available to assist startups, micro businesses, and underserved or disadvantaged groups.

The following resources provide information to help specialized audiences start their own businesses:

  • Environmentally friendly "green" business
  • Home-based business
  • Online business
  • Self-employment
  • Minority-owned business
  • Veteran-owned business
  • Woman-owned business

Finally, you can save money when starting or expanding a business by using government surplus. From commercial real estate and cars, to furniture, computers, and office equipment, find what you need for your business in one place.

Go to SBA.gov for help in following these 10 steps and for gaining access to the resources that are available for small businesses. You also should engage the assistance of an attorney and an accountant up front.

This article was written by a professional financial journalist for Preferred NY Financial Group,LLC and is not intended as legal or investment advice.

An individual retirement account (IRA) allows individuals to direct pretax incom, up to specific annual limits, toward retirements that can grow tax-deferred (no capital gains or dividend income is taxed). Individual taxpayers are allowed to contribute 100% of compensation up to a specified maximum dollar amount to their Tranditional IRA. Contributions to the Tranditional IRA may be tax-deductible depending on the taxpayer's income, tax-filling status and other factors. Taxed must be paid upon withdrawal of any deducted contributions plus earnings and on the earnings from your non-deducted contributions. Prior to age 59%, distributions may be taken for certain reasons without incurring a 10 percent penalty on earnings. None of the information in this document should be considered tax or legal advice. Please consult with your legal or tax advisor for more information concerning your individual situation.

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