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Many of our clients are current or former business owners so this may be a review for some of our readers. Still, I thought it would be helpful to discuss what the initial stages of starting a business should look like. Business ownership is a dream for a lot of people, but it can be hard to take the first step, especially if you are unsure of what the first step should look like.
Step 1: Create a business plan.
A business plan should answer some basic questions: What services or goods will I be providing? What are my expenses projected to be? Do I need a physical location? How many employees, if any, will I need? What do I expect gross & net income to be the first 3, 6, 9, 12 months?
Step 2: Create your business.
The next step is forming your organization. Most of the time creating an LLC is recommended because this can shield your personal assets from your business risks should something go wrong. It also allows you to draw a clear line of separation of business and personal expenses. Forming the LLC, for example, can be done on the Secretary of State’s website. You will search for the name of your business to be sure it has not already been taken and if it has not, go through the steps to create the LLC. The process takes a few days, but once it is complete you will have a legitimate business.
Step 3: Establishing an Employer I.D. Number (EIN) number.
This is required for your business. You do this through the IRS website after you have your Articles of Organization and LLC established. This little number is a large part of keeping everything organized and properly filed. Your CPA uses this number to ensure proper filings for the business tax returns and things like payroll taxes. One more great benefit of forming your business and obtaining the EIN is a pathway to more opportunity beyond the business, starting a 401(k), filing as an S-Corp, and implementing other advantageous business strategies.
Step 4: Building your team.
As a business owner it is crucial to have the right team of professionals around you: CPA’s, Attorney’s, Property & Casualty Insurance brokers and Financial Planners need to be working together with one goal in mind: to help your business be successful. Now that you are a business owner, you will be pulled in many directions. Keeping everything coordinated and organized can be a challenge, but it does not have to be that way. As your Wealth Advisor, OmniStar has years of experience working with many types of businesses within many industries and professions. If you are an existing client who owns a business, this sounds familiar. If not, you might find us to be unusual in that we work with all members of your advisory team to ensure everyone is aligned and focused on your success. If you are considering opening a business and need guidance, please reach out to one of our associates at OmniStar Financial Group. We would love to share our experience of helping many clients navigate the challenges of starting, and growing, their business.
