Oftentimes, new entrepreneurs feel there is much to be done in setting up a business, they think about what should they start working on first? How to write a business plan? How to about open a business bank account? And how to incorporate or form an LLC?. In this article, as a new entrepreneur, you’ll get to know 7 things you will need to start a business in 2021.
Let’s take a look at few things you need to start a business in 2021.
Things You Will Need to Start a Business In 2021
1. Business plan
2. Business Structure
4. Business license
5. Tax ID
6. Registered Agent
This is the first you need when thinking of how to start a business. Business plan guide you to plan the future of your startup by detailing the past, present, and future of the company. With business plan, you’ll be able ti outline your goals, timelines and steps that will help to reach these goals.
There are two formats for writing a good business plan. First is the traditional format which is generally around 30 pages in length and includes many details about the business. While second is a lean startup plan which is much shorter and usually not more than one page.
Is it okay to have a lean startup plan more detailed than a traditional business plan?
Yes it’s okay but remember that you may always return to this plan and revise it over time as you may be you able to reach specific goals sooner than anticipated. Ensure to note in your success in your business plan, when it happens and plans to expand your future goals.
If you’re operating a sole proprietorship, then it is easy to maintain and requires little paperwork. A sole proprietor is the boss of the business, and, as a sole proprietor, you are also responsible for everything that impacts the business, like an accident on your property or an employee getting hurt while working, you would be liable for the injury.
It is advised that you incorporate or form an LLC when you start a small business, that way, you’ll have a limited liability protection which in the event of an accident and a business lawsuit will ensure the safety of your personal belongings.
Benefits of incorporating a business
1. You may be able to save extra money during tax season.
2. An entity also helps establish credibility.
3. Allows you to look and sound legitimate with existing and potential customers alike.
Your business distinct name, or logo is your trademark which must be registered when you start a business.
Your trademarks show the world the uniqueness of your business and helps identify the business to the public.
The best way to avoid people from plagiarising your trademarks is to register a trademark at the federal level.
When you start a business, make sure you have the proper licenses and permits that will allow you to conduct business in a specific city, county and state.
Although the rules for business licenses may differ by location, it is not good to guess which business licenses you should file for without understanding the requirements.
To get your business license, reach out to your local Secretary of State for a full list of applicable business licenses and permits as they pertain to your specific company.
A tax ID often known as an employer identification number (EIN) is a nine digit number which every business that incorporates or forms an LLC receives. This federal tax ID helps the government to identify and tracks employer tax accounts.
What do I need Tax ID for?
Tax ID is very vital in opening a business bank account and it’s also a requirement before hiring any business employees.
Some business owners prefer to receive their paperwork in private and this is where a registered agent comes in by acting as the point of contact between a business and the state.
RA may be an individual or a third party company who will accept paperwork on behalf of the business from county and state agencies, organize these documents and then deliver the paperwork to the business owners in a timely manner.
Having a business websites is an important factor to consider when it come to things you need to start a business in 2021. Business website allow customers to find your business online and engage with the company.
I’d recommend you start a website for your business.