Q:

How do you start a business?

A:

Quick Answer

To start a business, you need to get an employer identification number, register your trade name, obtain a business license, check on additional permits and get a business bank account. A business owner may also need a certificate of resale and a completed business personal-property tax form.

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Full Answer

  1. Get an employer identification number

    An employer identification number is used for tax purposes to identify a business and is only needed if the business has employees or is considered to be a corporation, LLC or partnership.

  2. Register your trade name

    Some localities require a business owner to register his trade name if the business isn't operated under his own name.

  3. Obtain a business license

    It usually only takes a few minutes to fill out an application for a business license with the county or city. Some business license applications may ask for a yearly gross receipts estimate, which should be as accurate as possible.

  4. Check on additional permits

    Different localities have different requirements for business permits. An example of such a permit is that a business that's operated out of a home must meet certain zoning requirements to be compliant with the law.

  5. Get a business bank account

    It's best for business owners to keep personal funds separate from business funds. Doing so can help prevent an audit by the IRS.

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