You picked your business name, your business cards are at the printers where you chose your new logo. So, what’s next? Lots of things. Essential things that you need to be done before you begin to operate your business. Let’s find out what these are.
Essentials for Startups
Following are essentials for a startup business that also help create a sound credit building process.
How Will You Structure Your Business?
There are choices for you to make, and what you decide has implications for taxes, liability protection, and more. Choices for structuring your business include,
- Limited Liability Company (LLC);
- S-Corporation – provides the tax advantages of a sole proprietorship with the liability protection of a corporation;
- C-corporation – a company that raises capital by selling stock with liability protection
- Limited Liability Corporation
- Sole proprietorship
Tip: This is an important decision and should be made with input from your attorney and tax advisor.
Get a Tax Identification Number for Your Business
You may have heard of a tax ID number as a Federal Tax Number or an Employee Identification Number (EIN). An EIN is the business equivalent of a personal Social Security number. Without one, your business is unable to build a credit history. The only exception is a sole proprietorship, where the owner’s own Social Security number is used in place of an EIN.
What Is Your Business Address?
Businesses that want to appear bigger than they are often choose to use a commercial post box rental unit. They get a street address and a suite number (the box number).
Tip: Your business mailing address and your physical location address do not need to be the same.
Business Phone Number
While toll-free numbers are affordable and a customer perk, a regular phone number is OK for a local business.
Tip: Your new business needs its own phone number.
Open a Business Bank Account
A small business bank account is easy to open. All you need is to have needed documentation in place. Documentation needed to open a business bank account depends on how your business was legally established.
Tip: Check with your bank for the documents your new business needs to open a business account. Once you open a business bank account you can accept credit cards.
Open a Merchant Services Account
With a merchant services account, you have the ability to accept credit cards. Even if you are starting a business to business company, many small businesses like to use credit cards for cash back and travel awards.
Tip: Merchant service accounts are highly competitive, but some vendors have lots of hidden charges. Shop around and look out for monthly fees that are not related to transactions.
Get Your Own Business Credit Card
A business credit card is your entry into getting rewards and cash back for purchases your business makes. Its advantages are higher credit limits, expense tracking, and building your company’s credit. Again, shop around for the best deal you can.
You Need a Business Debit Card
A debit card allows you to buy items without the need to write a check. It is convenient and most banks have no fees attached to debit card issues or use – but, make sure your bank account has overdraft protection just in case.
Check off the items on this list to prepare for your startup’s launch. Doing so helps make your new business launch ready.