Business Checklist

This is a general start-up , business credit builder checklist.

1. Select a Name and Legal Structure

You basically have 4 choices when selecting a legal structure.

Click Here for a detailed explanation of all 4.

Sole Proprietorship
Partnership
Limited Liability Company (LLC)
Corporation or S-Corporation

Free information on Legal Aspects of Business
http://sba.gov/starting_business/legal/buslaws.html

2. Write a Business Plan

If you haven't already, prepare at least a basic business plan. A basic business plan is about (6) six pages.

Free information on how to create your business plan.
http://sba.gov/starting_business/planning/basic.html

3. Obtain your Federal Employer Identification Number (FEIN)

If you are set-up as a Corporation or an LLC (or a sole proprietorship with employees), apply for a Federal Employer Identification Number (FEIN) from the IRS. A FEIN will be necessary to open a bank account or process payroll.

Link to IRS to get your FEIN.
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html

4. Open the Company Bank Account

Select a bank and open the company bank account. Preferably a community bank.
For a list of community banks in your area CLICK HERE.

Contact the bank prior to opening the account to see what their specific requirements are to open a business checking account; some banks' requirements are fairly simple whereas some banks' requirements are extremely complex.

5. Lease Office, Warehouse or Retail Space (if not home-based)

Depending on your type of business (retail, office or warehouse), arrange for office space to be leased. Contacting a commercial realtor in your area can be helpful. Also, make sure to arrange for utilities and office furniture.

6. Obtain Licenses and Permits

A. Federal Permits
Depending on the type of business you are in, you may need a federal license or permit.

Most businesses do not require a Federal license or permit. However, if you are engaged in one of the following activities, you should contact the responsible federal agency to determine the requirements for doing business:

Investment advising ( http://www.sec.gov )
Drug manufacturing ( http://www.fda.gov )
Preparation of meat products ( http://www.fda.gov )
Broadcasting ( http://www.fcc.gov )
Ground transportation ( http://www.dot.gov )
Selling alcohol, tobacco or firearms ( http://www.atf.gov )

B. State Licenses
Some occupations and professions require a State license or permit. Laws vary from State to State, however, if you are engaged in one of the following professions, you should contact the responsible state agency to determine the requirements for your business:

building contractors
banks
insurance carriers
physicians
appraisers
accountants
barbers
real estate agents
auctioneers
private investigators
private security guards
funeral directors
bill collectors
cosmetologists

State Licenses and Permits based on products sold.
Some state licensing requirements are based on the product sold. Contact your state licensing authorities to determine the licensing requirements of your business. For example, most states require special licenses to sell:

liquor
lottery tickets
gasoline
firearms

Information: Most people engaged in the types of business that require a special State License or Permit are already aware of the requirements (i.e. an accountant is familiar with the licensing requirements for accountants).

C. Sales Tax Permit
If your company sells physical products within the state where it does business, you may have to collect and pay sales tax. This is usually accomplished by obtaining a State Seller’s Permit or Resale Permit.

Information: Many service businesses that do not sell a physical, tangible product are NOT required to collect sales tax, ask the State taxation agency for details/clarification.

D. Business License
Most Cities or Counties require you to obtain a business license, even if you operate a home-based business. This is a license granting the company the authority to do business in that city/county.

7. Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both).

8. Set up an Accounting and Record-Keeping System

Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.

Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years.

9. Obtain Business Insurance

There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.

10. Systemize and Organize

Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business.

11. Develop a Business Identity

Order business cards, letterhead and promotional materials for your business. A professionally created logo can make your business look professional and established.

12. Get the Word Out (Marketing)

Now you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer.

Free information about a creating a marketing plan.
http://sba.gov/starting_business/marketing/basics.html

Free information on Start Up Basics
http://sba.gov/starting_business/startup/basics.html

How do I get a small business loan?
The SBA has several Guaranty Loan programs that assist those who can not obtain financing through a lender under reasonable terms. Here is how our Guaranty Loan programs work: ...
http://www.sba.gov/ADTemplates9.19.03.doc 70.0KB

SBA Procurement Centers
http://www.sba.gov/GC/pcr.html
PCRs increase the small business share of Federal procurement awards by initiating small business set-asides, reserving procurements for competition among small business firms; providing small business sources to Federal buying activities; and counseling small firms. In addition, PCRs, advocate for the breakout of items for full and open competition to affect savings to the Federal Government.