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R. M. O'Hanlan Consulting
Starting your own business can be both exciting and daunting. Whether you’re looking to establish a sole proprietorship or a limited liability company (LLC), there are several crucial steps to consider. This guide, presented by Michael O’Hanlan, CEO of R. M. O’Hanlan Consulting, outlines the key steps and considerations for starting a small business.
A sole proprietorship is the simplest and most common structure chosen to start a business. It does not produce a separate business entity and the business assets and liabilities are the owner's.
An LLC provides limited liability protection and pass-through taxation. It can be a single or multi-member structure, offering flexibility and protection.
A partnership involves two or more people who agree to share in the profits or losses of a business.
Corporations are more complex and generally recommended for larger businesses.
Every business should start with a well-thought-out business plan outlining the business strategy, market analysis, financial plan, and operational plan.
Choose a unique name for your business that represents what you offer.
Consider trademarking your business name, slogan, and logo to protect your brand.
If you're operating under a name different from your own, you might need to file a DBA.
Secure a domain name that matches your business name to establish an online presence.
Ensure you register your business with the appropriate state and local agencies.
A trademark legally protects your brand’s name, slogan, and logo.
Design and trademark unique slogans and logos to establish brand identity.
Register your trademarks with the United States Patent and Trademark Office (USPTO).
Most businesses need a federal tax ID number, also known as an Employer Identification Number (EIN).
You can apply for an EIN online through the IRS website.
Complete and submit the application to receive your EIN.
Each state has different requirements for state tax IDs and business registration.
Ensure you comply with federal regulations by registering with the Financial Crimes Enforcement Network (FINCEN).
Some businesses require federal licenses or permits.
State permits and licenses vary by industry and location.
Check with your local city or county office for additional permits or licenses.
Local economic development councils can provide resources and assistance.
Understand the different types of liability your business might face.
Covers legal hassles due to accident, injuries, and claims of negligence.
Protects against claims related to the manufacture or sale of products.
Covers property owned by your business.
Ensure you classify your employees correctly to comply with labor laws.
Different from employees, contractors handle their own taxes and are hired for specific tasks.
Unpaid internships must meet specific criteria to comply with labor laws.
Handle volunteers according to legal guidelines to avoid misclassification.
Ensure compliance with minimum wage laws and regulations regarding the employment of minors.
Keep accurate and detailed records of employment.
Offer required benefits and comply with benefits regulations.
Ensure staff are aware of their legal rights and protections.
Keep personal and business finances separate by opening a business bank account.
Maintain separate credit card accounts for personal and business expenses.
Regularly review and reconcile your business bank statements.
Explore various funding options to support your business operations.
Maintaining thorough records can save you during audits and tax filings.
Good records are essential for demonstrating compliance and financial health.
Implement a consistent filing system, either paper or electronic, for all business documents.
Use consistent naming conventions for files to ensure they are easily searchable.
Keep accurate records of all financial transactions and regularly reconcile accounts.
Understand and comply with all tax obligations, including income and sales taxes.
Leverage translation tools to bridge language barriers.
Use AI tools for real-time translations and assistance.
These tools support translations in many major languages.
Utilize translation tools in bilingual settings to improve communication.
Conduct bilingual meetings using translation tools on a second screen.
Translation tools are not perfect but offer affordable solutions.
The SBA offers various resources, including counseling and loans.
Hire an accountant to help with financial planning and compliance.
Consult with lawyers for legal advice and to draft business agreements.
Work with insurance brokers to obtain necessary business insurance.
Develop a marketing strategy to launch and grow your business.
Understand your income tax obligations and how to handle owner’s draw.
Comply with state sales tax requirements from the beginning.
Each region has specific tax regulations and compliance requirements.
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By following these steps and leveraging available resources, you can set a strong foundation for your new business. Remember, while the journey may be challenging, proper planning and organization can pave the way for success. For more detailed assistance, contact R. M. O’Hanlan Consulting.
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