Home Business Start Up Checklist

Before you do anything, you want to research your market to make sure that your business has the

opportunity to be profitable. You'll want to look at things like consumer trends, current markets (local,

national and international), industry knowledge, competition and future growth. To get started, there are

free market research tools that you can access online, such as FedStats, "Statistics of U.S.

Businesses" from the Census Bureau and the Small Business Administration's Office of Economic

Research. Who is Your Target

Market?

You may need to check zoning requirements for your business to make sure you can operate in your

neighborhood (for example, if you plan to run a group home, day care, commercial cooking business

out of your home).

Register your fictitious business name with the city or county clerk. Will you

operate your business as a sole proprietor or do you want to set up a partnership or corporation?

What is the difference?

Obtain a business license from your local government office. Requirements vary by

city and state, and also the type of business you're starting. You can go into your local office, or

some cities allow you to download applications right from their websites. Do you need to copyright your work or obtain a patent or trademark?

Open a business bank account. You'll want to keep your personal and business

finances separate with a separate bank account. This also enables you to write checks from your business

account and accept checks made out to your business name. Interview and compare several banks to find

the services you want. Business bank accounts are not necessarily any more expensive than a personal

account.

Create a business plan. Planning your business before you start is important,

especially if you need to secure financing. Business plans can be simple or complex, depending on

your business. Business planning software makes the process easier. Bplans.com has over 500 sample business plans that

you can view online for free.

Also, creating a business budget can make managing your business much easier: Set up a Home Business Budget.

Obtain any necessary business financing. Getting a business credit card an help you establish business

credit.

Register with the state for collection of sales tax, if applicable.

Register with the city/county for local taxes.

Apply for a Federal Tax ID Number


You get a Federal Tax ID Number, or Employer ID Number (EIN), from the IRS. You can apply through their

website, by phone, fax or mail. For fastest service, apply online. It can take up to five weeks to get

your EIN if you apply by mail.

The EIN you receive is your permanent number and can be used for business tasks such as opening a

business bank account, applying for a business license or filing a tax return. (You can also get

information at the site about business income tax, self-employment tax & paying estimated taxes.)

If you don't know if you need a Federal Tax ID Number for your business, answer these questions. If you already have a Tax ID Number, but have misplaced

it, you can call the Business and Specialty Tax Line at (800) 829-4933 and have them look it up for

you.

Get a payroll book, accounting software or hire an accountant to handle business bookkeeping. If you

decide to purchase software, you can save money if you buy a versionn that is a few years old rather

than the latest version. There usually isn't much difference.

Lease or buy commercial space for your business. Information on commercial leases. If you need to put together contracts or legal

documents of any kind, you can get low-cost online assistance from a variety of qualified legal services for small businesses.

Meet with a local insurance agent about business insurance requirements and options. If you need to

find an insurance agent, you can use the IIABA (Independent Insurance Agents & Brokers of America). You can also get

free business insurance quotes and information online.

Get a business phone line. You may be surprised to find out how cheap it can be to set up

a toll-free 800 phone number, a multi-line phone system, VoIP or add an additional

phone number to your existing service. You can even find online conferencing services for cheap.

Order business cards. Often overlooked, business cards can be a very efficient and low cost advertising

method. See how you can design your own professional business cards online >> Free Business Cards. See also: 30-50% off Postcards, Brochures and

more Design your own marketing pieces online - templates are provided and the printing is done for

you.

Buy a domain name and get a website. Even if you don't sell any products or services

online, a website can be a way for customers to find you and get information on your business. Save

money by creating your own website with simple online design programs, or outsource the job

to an affordable website designer.

Set up a credit card merchant account. If you're handling transactions online and want to

save money, you can sign up for a merchant account with PayPal for free. There are no monthly fees; you

pay only per transaction. Payments are made through their secure server, so you don't have to have your

own.

Hire employees, if applicable. Get more information

Submit a press release to your local paper and online distribution service about the opening of your

business. This can mean free publicity for your business instead of paid advertising, and you can even

write your own press release.