When considering pension plans, small businesses typically have three options: How you want to structure your business — sole proprietorships, businesses, or something in between — will typically have legal and tax implications for the foreseeable future. This makes this decision decisive. Some of the most popular business structures are: A good business to start is usually one that meets an unmet consumer need. Think of a daily problem that still needs to be solved, or ways to improve an existing solution by making it faster, cheaper, or easier to use. Preferably, your idea should be something you are passionate about or have a certain level of expertise. Registration forms are a good starting point for building trust and respect with potential customers. Most importantly, these forms are required by law. The CAN-SPAM Act of 2003 establishes requirements for commercial e-mail by the Federal Trade Commission. This law doesn`t just apply to mass emails. It includes all commercial messages that the law defines as “any electronic message whose primary purpose is commercial advertising or the promotion of a commercial product or service”. Any email that violates this law is punishable by fines of more than $40,000. To help you start your small business, we`ve asked executives and entrepreneurs for their best advice. Whether it`s an expert environment or leveraging your comparative advantage, there are a few tips that can help you start your small business.
There are several legal issues to be solved when starting a business depending on the choice of business structure. Below is a good list of things to consider when starting your business: You usually have two options when it comes to research: look at existing sources or do your own analysis. Relying on previously collected data can save you time and money, but it may not be up to date or specific enough for your target audience. If you start your search from scratch, you have the advantage of being able to connect directly with customers through focus groups, one-on-one interviews, and surveys. Keep these digital assets up to date with relevant and interesting content about your business and industry. According to Ruthann Bowen, director of marketing at EastCamp Creative, too many startups have the wrong attitude towards their websites. As long as you are willing to make an effort, it may be possible to start a business with limited or no means. Service companies are sometimes a good option for contractors on tight budgets, especially if you have expertise in a particular area or already have the tools to get the job done. Product-based businesses usually need more capital, but you can still track them in some cases by starting a service business and using the profits to bring a product to market. Along the way, you usually have to do all the work yourself and possibly keep your existing job to avoid financial problems. Some businesses may also need federal, state, or local licenses and permits to operate.
The best place to get a business license is at your local town hall. You can then use the SBA database to search for licensing requirements by state and business type. Businesses and independent entrepreneurs in certain professions must hold a professional license. An example of a professional license is a commercial driver`s license (CDL). Persons holding a CDL are allowed to drive certain types of vehicles such as buses, tankers and semi-trailer tractors. A CDL is divided into three classes: Class A, Class B and Class C. I recommend having professional support in starting a new business. Entrepreneurs are talented in their craft, but may not be well versed in what goes into opening a business. Professional support saves time in research and knows what to do and when to do it. It also minimizes the risk of not being familiar with the federal, state, or municipal regulations required for the industry in question. Ultimately, this will save money in the long run as a professional can offer best practices and cost-effective solutions.- Kimberly Bogues, Flourish Business Services, LLC Although there are some platforms that allow you to create a website with little or no development knowledge, it can be helpful to hire a professional if you want to present a really polished image of your business.
Look for digital agencies that specialize in helping small businesses, as they tend to be more likely to understand your needs and meet your budget requirements. If you don`t have a charter or operating contract, you`ll need to register your business name, which can be your legal name, a fictitious DBA name (if you`re the sole proprietor), or the name you found for your business. You can also take steps to protect your company name for additional legal protection. About the author: Tina Orem is NerdWallet`s authority on taxes and small businesses. His work has been published in various local and national media. When building your brand, ask your customers and potential customers for permission to communicate with them. The easiest way to do this is to use opt-in forms. These are “forms of consent” given by Internet users that allow you to contact them with more information about your business, according to Dan Edmonson, founder and CEO of Dronegenuity. Running a business can be overwhelming, and you and your team probably won`t be able to do everything on your own.
This is where third-party providers come in. Companies from all sectors, from HR to corporate phone systems, exist to work with you and help you better manage your business. Before you can register your business, you need to decide what type of entity it is. The structure of your business legally affects everything from how you file your tax returns to your personal liability in the event of a problem. There are several sources of financing for brand new businesses, and most require a business plan to secure them. These include small business administration, private grants, angel investors, crowdfunding and venture capital. Your business` start-up capital can come from a variety of means. The best way to get financing for your business depends on several factors, including creditworthiness, the amount needed, and the options available. You may also need other types of coverage, depending on your location and industry, but most small businesses are advised to purchase general liability (GL) insurance or a business owner insurance policy.
GL covers property, bodily injury and bodily injury to you or third parties. Before you open a business, take a moment to make sure you have all the proper licenses, permits, and insurance policies to work legally. The last thing you want at this point is to be shut down by a government agency. Federal Registration Aside from a tax identification number, you generally do not need to register your business with the federal government unless you are applying for tax-exempt status or trademark protection.