Many people dream of being their own boss and running a successful company. Being an entrepreneur is a great way to make a living and there are opportunities for success for those who have dedication and a good idea. However, you need to make informed choices when starting your small business so you will be on the path to success.
The Law Offices of Mike Ross represents startups, small businesses and established companies on all of their business law needs. Our San Jose small business attorneys can help you to follow the necessary steps to start a small business that will give you the foundation for success.
How to Start a Small Business
When you want to start a small business, there are a few key steps you need to take:
- Determine the local laws for licensing and business operation. If you plan to operate out of your house, you will need to ensure you are in compliance with zoning laws. Many types of businesses also need special licensing in California. You should look into the basic requirements for forming your company so you are prepared to comply.
- Register a DBA name. If you plan to do business under a name different from your own, you will need to register a Doing Business As (or DBA). This will make it possible for you to open accounts in the business name or have people write checks to the business that you can cash.
- Consider getting an Employer Identification Number (EIN) for your business. The Internal Revenue Service explains when an EIN is necessary and how to apply to get this tax identification for your company. If you plan to have employees or operate as a corporation or as a partnership, you will need to have an EIN.
- Develop a comprehensive business plan. You need to know the goals of your business, who you are marketing your products or services toward, what it will cost to operate and when and how you intend to make a profit. A detailed business plan will serve as a roadmap as you develop your business. You can also use the business plan to demonstrate to investors or banks how you plan to make your company profitable. This can be important if you intend to secure outside financing for your company.
- Set a budget and secure funding. You need to have a careful plan in place regarding how to pay for operational costs. It is almost always best to invest the minimum necessary to let your company get off the ground and then to grow your business as you begin to make a profit. You will need to be smart about how to finance your company as well. Taking out a loan puts your personal finances at risk, while getting investors spreads the risk but may mean you need to share the profits.
- Determine if your business should incorporate. There are a variety of different business structures. When you start a small business, you need to determine the best operating structure for you.
The law Offices of Mike Ross can help you to make the necessary decisions when you start a small business. Call today or contact us online to schedule a free consultation with a San Jose small business lawyer to learn more about how we can help you start a small business and create the company of your dreams.