10 Steps to Forming a New Business

10 Steps to Forming a New Business


 10 Steps to Forming a New Business,WAGABIZ
Forming a new business can be a confusing and stressful process unless you have a good idea of what you need to do. Many budding and new entrepreneurs have great ideas but then are at a loss at how exactly to start up a new business. 

Here are 10 steps for forming a new business.


Prepare a business plan (Planning)
Prepare a business plan,wagabiz

A business plan is a roadmap for where you want your company to go from its inception through its first three to five years.  It details how you intend to grow your business.  The most important part of the business plan is the Executive Summary, a one-page summary of your plan that touches upon your company’s strengths, weaknesses, opportunities, and outside threats (SWOT Analysis).  Be sure to include a detailed company description, location, goods and services provided, key differentiator, examination of the local competitive landscape, required permits, marketing plan, organizational management, sales forecasts, and estimated start-up costs.


Determine if your company name is available 


Even if you are not yet ready to start a business, there are services that allow you to search to see if your intended business name is available.  A comprehensive search can be done through ROC (REGISTRAR OF COMPANIES) and local authorities (municipal offices) website. Consider alternative names before embarking on your search to help save time.


Determine if your desired URL is available (Domain Search)


Once you have established a unique and memorable business name, your website domain name should be no different.  Although it is not necessary to have a URL or website in order to form a company, it is highly recommended if you are searching for funding, particularly in today’s world of digital commerce.  Securing the proper URL is best addressed in the early stages of a business formation.  There are many services that allow you to search URL name availabilities for free, such as GoDaddy .  If you cannot replicate your same business name in a URL, try to come as close as possible.  Also, consider social media variations for your company name for sites such as Facebook, LinkedIn and Twitter.


Register your URL

Many websites that allow for free name searches will also offer registration for a fee, The .com extension is the most desired, but consider also purchasing a few other extensions such as .net, .org and .biz.  It is not necessary to have a registered URL to form a company, but it is highly recommended.


Choose the state in which you want to register your business

You don’t need to form your business in the same state where you are located.  Different states offer varying benefits of incorporating.  For instance, some states have a low rate of GST than the others.


Choose your legal business structure

 There are various type of business organizations like A partnership firm, Company, Sole proprietary or LLP (limited Liability Partnership). Each of the form of business organization has its own benefits and disadvantages. Some are Easy to form than other,Some have liabilities issues, Or the legal compliance matters etc. Choosing a right form of organization is must.


Appointment of Chartered personals

Deciding in advance whether who is going to be the director,Promoters,and other personals such as secretary, chartered Accountant and other personals in charge as required by the law is mandatory.  


Legal Formalities
Every business has to follow some legal formalities.Each business has separate set of formalities that’s why I am not taking it into consideration here, Otherwise this article will be ever lasting.You have to find it out by yourself. But, to be told in simple word this is the step where you get your business registered with the authorities. And this is the step where your business truly comes into existence.


Open a separate bank account for your business
Open a separate bank account for your business,WAGABIZ

Opening a bank account and a credit card will help legitimize your business and help you build up your credit score to secure capital for your future growth needs.  Establish a separate business bank account so that your personal assets are not mixed with business funds.


Secure all required licenses
Most state, county and local governments require companies to have the right licenses and permits in place before they open their doors.  There are over 150,000 filing jurisdictions across the country, all with specific requirements.  Depending on your particular industry and where you are located, a variety of licenses may apply to your business.  Failure to obtain the correct business licenses or permits can result in fines, notices and forced closure of your business.

State licenses are usually required for personal or professional services like accounting, contracting, or cosmetology that have specific industry standards. Central licenses are required for businesses that are highly regulated by the central government, such as ground transportation, preparing meat products, manufacturing alcohol or tobacco, or providing investment advice.

Now that you have formed your new company, keep your business compliant in order to satisfy the federal, state and local regulations that apply to most enterprises each year you are in business.  There are many legal formalities and paperwork required for maintaining your corporate status.

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