If you are an entrepreneur starting your very first business, you are probably referring to one of many checklists readily available on the internet. These are a very handy tool when you’ve never launched any kind of business before, but one thing you’ve probably become aware of is that no two are exactly alike. So then, which one should you follow?
You could build your own checklist based on common elements you’ve found on multiple lists, but there are a few items often omitted on most of those checklists, and you’ll soon see why.
Don’t Forget That All-Important Federal EIN
Another thing you will need to do early on is applying for and obtain a Federal Employer Identification Number, Federal EIN. If you set up any entity to do business in the United States, this is a must long before you open your doors. It’s how the IRS will tax you and it is also required for other things you’ll need to accomplish before launching your new startup.
Small Business Checking Accounts
This is one of those things that often get lost in the shuffle. You are told on most lists that you need to decide which kind of entity you’d like to register such as:
- Sole Proprietorship
- Partnership
- Limited Liability Company
- S- Corporation or Corporation
You then apply for your Federal Employer Identification Number mentioned above.
With a registered business and an EIN, you can now open a Small Business Checking Account. Altogether too often when starting a new company, an entrepreneur will pay for things out of pocket, often forgetting to open a business account before launching that new company!
Comingling funds won’t bode well with Uncle Sam once you’ve registered your company to do business in the United States.
Find and Build a Relationship With a Mentor
One final thing that many entrepreneurs fail to realize the importance of would be a mentor. This isn’t necessarily someone who is in the same business as you are – it should be someone who has evidenced the ability to grow a company up from the ground.
You can rely on an experienced business owner to help you be prepared for those little bumps in the road that every fledgling entrepreneur encounters. To say that you will not be faced with obstacles is untruthful in the least. It’s something you can expect in any business, young or old, and the sooner you face that uncomfortable truth, the easier it will be to overcome those little annoyances. This is what a mentor can help you through.
Most startup checklists will include tips for hiring employees, choosing the type of company you want to register, and will also offer advice on how and where to locate your business. Unfortunately, many of those are written by well-established business owners. These are just a few of the things you may need to add to your personal startup checklist, and each is something that will help you get off to a running start.
