What are the requirements to start your own business?


Quick Answer

Some of the requirements for starting a business include choosing a business name, location and legal structure, writing a business plan, arranging for financing, obtaining permits and licenses, and satisfying federal and state tax registrations, as explained by the U.S. Small Business Administration. A specific requirements list depends on the type of business and the start-up location.

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Full Answer

Entrepreneurs have access to a large amount of information on the best way to start up a business, and they are free to choose how much preparation to put into the process. For example, the SBA advises entrepreneurs to write a formal business plan and obtain business assistance and training as prerequisites to starting a business. However, an entrepreneur can choose to skip these steps.

Likewise, a new business that conducts activities that are regulated in a particular state must obtain the proper licenses and permits before doing business, states Nolo. For example, the requirements to start a new veterinary office are different from the requirements to open a clothing store, because veterinary practices require a special license in most states.

The type of products a business sells can also change the start-up requirements, as detailed by FindLaw. For example, a business selling alcohol must typically obtain a liquor license before engaging in that activity.

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