Steps for Starting a Small Business
This is an important first step because it will set the tone for your success. It is vital to initially evaluate your business and personal goals. Base a comprehensive and thorough business plan that will help you to reach these goals. It is likely that you will also go over important issues that you previously hadn’t taken into consideration. This plan will be invaluable as you raise money for your business and will help you evaluate your business’ level of success based on completion of goals.
There are numerous free training and counseling programs that will help you start your business. These partners can help you get started in the areas of low-cost business training and free mentoring, gaining access to capital, selling to government, and expanding your business.
The best location for your business depends heavily on the type of business you are running. Your proximity to competitors, zoning and signage regulations, as well as ease of access are all important aspects to consider. Seek advice to choose your best location while staying in compliance with zoning laws.
Your business will require capital at some point to start up or expand. If savings, home equity, or friend and family are not an option for you, your best source of funding will be a business loan. You can find federal, state, and local government financing programs here.
You have to determine which form of business entity you wish to establish. This decision will affect the amount of paperwork you must file, your personal liability regarding investments into your business, as well as the taxes you have to pay.
Decide whether your business is a Sole Proprietorship, General Partnership, Limited Partnership, Limited Liability Partnership, Limited Liability Company, or a Corporation.
Fictitious business name statements are required if your company name is different than your own. This statement is obtained through your local county Clerk Recorder office. Can find county contacts and FBN applications here.
You need to register with the state of California and the federal government to obtain a Federal Employer Identification Number. Learn about corporate, payroll, income, and sales tax, as well as different tax assistance programs available to small businesses.
The licenses and permits required to run your business legally are determined by the business activity type you have chosen. Business licenses are obtained through your local city and business entity registration is done through the California Secretary of State. Other permits and licenses you may need can be found by using CalGold, which is a database that provides you with links and contact information to find permitting and licensing agencies.
You need to know the legal steps that must be taken to hire new employees. You must meet federal, state, and local requirements regarding equal opportunity employment, employee safety and health protection, as well as taxes and insurance. Learn more here.