Starting a new business can be an exciting time in the life of a business owner. To help guide them through that process, it is helpful to be familiar with the steps to starting a business and how to select the best business structure what for they are doing.
Develop a business plan
The first step to start a business is to develop a business plan. The business plan is important because it will serve as a blueprint for the business and decisions made about the business. The business plan should include categories such as sales, marketing, advertising and location.
Select a location
The second step is to select a location for the business. The decision should be thoughtfully made. This may mean selecting the best brick and mortar location or taking the business online.
Choose a business entity
The third step is business formation. There are several options to consider which should be evaluated based on liability, taxation, management styles, requirements and regulations and ability to raise capital. Different business types include:
- Sole proprietorship;
- General partnership, limited partnership or limited liability partnership;
- Limited liability company; or
- Corporation
File tax and other required documents
The fourth step is to file required tax documents and meet any other requirements which can include licensing, permits and other requirements.
Knowing the steps to start a business a business in California can help business owners lay a strong foundation for their business. Meeting legal requirements can help get the business going and also protect it down the road which is why business owners should know how to start their business and select the best business structure.
