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by Caron_Beesley, Community Moderator Created: May 2, 2012, 7:04 am Small Business Cents
Updated: May 21, 2012, 6:46 pm In The Loop
Business Planning
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Starting a business? Confused about the planning, legal and regulatory steps you should follow?
Guest Blogs
Did you know that home-based businesses are required to hold permits to operate legally in most
states? What about incorporation? Many new businesses assume they need to incorporate or become
an LLC from the get-go – but the truth is, more than 70 percent of small businesses are owned by un- Social Media
incorporated sole proprietors (although even this group is required to register their businesses).

So, variables aside, there are still some fundamental steps that any business needs to follow to get
Contributors
started. SBA has compiled 10 steps that can help you plan, prepare, and manage your business – while
taking care of the startup legalities. Not all these steps will apply to all businesses, but working through
them will give you a sense of what needs your attention and what you can check off. Meet our bloggers

Step 1 – Write a Business Plan

Yeah, yeah, you know you should write a business plan whether you need to secure a business loan or
not. The thing is, a business plan doesn’t have to be encyclopedic and it doesn’t have to have all the
answers. A well-prepared plan – revisited often – will help you steer your business all along its growth
curve. Try to think of your business plan as a living, breathing project, not a one-time document. Break it
down into mini-plans – one for marketing, one for pricing, one for operations, and so on. Take a look at
SBA’s Business Planning Guide for more ideas.

Step 2 – Get Help and Training

Starting a business can be a lonely endeavor, but there are lots of free in-person and online resources
that can help advise you as you get started. Check out what‘s offered at your Small Business Top Rated Articles
Development Centers; SCORE (which offers free mentoring services); Women’s Business Centers, or
your local SBA office.
How to Set and Negotiate
Step 3 – Choose Your Business Location y our Freelance Business
Rates
Where you locate your business may be the single most important decision you make. Many factors Thinking of Starting a
come into play such as proximity to suppliers, the competition, transportation access, demographics, Blog? Tips to Help You Start,
and zoning regulations. Check out SBA’s Tips for Choosing a Business Location and this blog: How to
Maintain & Grow a Sm all
Choose the Best Location for your Business.
Business Blog!
Step 4 - Understand your Financing Options 8 Tips for Keeping y our
Business Blog Current,
You may choose to bootstrap, fall back on savings, or even keep a full-time job until your business is Relev ant and Fresh
profitable, but if you are looking for an external source of financing, these resources explain your Inv estigating a Franchise
options.
Opportunity : How a Little
Step 5 – Decide on a Business Structure Detectiv e Work and the Law
can Help
Going it alone or forming a partnership? Thinking of incorporating? What about an LLC? How you Business Planning

www.sba.gov/community/blogs/starting-business-10-steps-every-entrepreneur-needs-know 1/5
11/25/13 Starting a Business? 10 Steps Every Entrepreneur Needs to Know | SBA.gov
structure your business can reduce your personal liability for business losses and debts. Some choices Tutorials
can give you tax benefits. To help you determine the right structure for your business, here’s an
overview of your options and some information on how to file the necessary paperwork in your state and
the tax implications of your decision. You might also want to read:
Community Help
LLCs Explained: A 101 for Small Business Owners
Should You Incorporate Your Freelance or Consulting Business?
FAQs & Guidelines
“Working Together” – How to Start and Formalize a Business Partnership
Com m unity Best Practices
Step 6 – Register Your Business Name (“Doing Business As”) Rules of Conduct

Registering a “Doing Business As” name or “trade name” is only needed if you name your business
something other than your personal name, the names of your partners, or the officially registered name
of your LLC or corporation. Here’s how to register your “Doing Business As” name. About This Blog
Step 7 – Get a Tax ID
Legal terms and rules explained
Not every business needs a tax ID from the IRS (also known as an “Employer Identification Number” or
EIN), but if you have employees, run a business partnership, a corporation or meet certain IRS criteria,
you must obtain an EIN from the IRS. You’ll also need to start paying estimated taxes to the IRS; this
blog explains more about this process.
Archive
Step 8 – Register with Tax Authorities

Employment taxes, sales taxes, and state income taxes are handled at the state-level. Learn more about Nov em ber 2 01 3 (2 2 )
your state’s tax requirements and how to comply. October 2 01 3 (1 7 )

Step 9 - Apply for Permits and Licenses Septem ber 2 01 3 (2 4 )

August 2 01 3 (2 1 )
All businesses, even home-based businesses, need a license or permit to operate. This guide explains July 2 01 3 (2 6 )
more and includes a handy “Permit Me” tool that lets you determine what your permit and licensing
June 2 01 3 (2 4 )
needs are, based on your zip code and business type.
May 2 01 3 (2 9 )
Step 10 - Hiring Employees April 2 01 3 (2 9 )
March 2 01 3 (2 7 )
If you’re hiring employees, follow these 10 steps. If you’re working with a contractor or 1099, read 5
Things to Know About Hiring Independent Contractors. February 2 01 3 (2 6 )
January 2 01 3 (3 0)
Related Resources Decem ber 2 01 2 (2 4 )
Check out SBA’s Starting and Managing a Business for more tips and guides. Nov em ber 2 01 2 (2 9 )
October 2 01 2 (2 6 )
Septem ber 2 01 2 (2 9 )
August 2 01 2 (2 6 )
About the Author July 2 01 2 (2 9 )
Caron Beesley is a small business owner, a writer, and marketing June 2 01 2 (2 5)
communications consultant. Caron works with the SBA.gov team to promote May 2 01 2 (3 3 )
essential government resources that help entrepreneurs and small
business owners start-up, grow and succeed. Follow Caron on Twitter: April 2 01 2 (3 5)
@caronbeesley March 2 01 2 (3 6 )
February 2 01 2 (3 5)
January 2 01 2 (3 0)

T a g s: Com m u n i t y Bl ogs, Bu si n ess La w A dv i sor , Bu si n ess La ws, Fi n a n ci n g, Ma n a gi n g, Men t or i n g a n d

T r a i n i n g, St a r t i n g, T a xes

‹ How To Set Up an Internship Program The Legal Steps Involved in Moving Your
for Your Small Business Business to a New State – FAQs Answered
›

Comments

MSchinella | Window Shopper | 1 0/2 8/2 01 3 - 9 :4 5 am

That's the kind of information I was craving before I found out how much less
was involved to run a legal and profitable business online. Sure, there's
still expenses but not nearly, nor as many stipulations. I believe I read
another one of your posts about Stay At Home Moms And Dads Working From Home.

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11/25/13 Starting a Business? 10 Steps Every Entrepreneur Needs to Know | SBA.gov
Also a great comprehensive piece of work. Thanks for more great information I
may happen to need to fall back on in the future.

I'm Mike Schinella, and at http://provenpromoze.com I have steps to starting online business
laid out in 6 easy to follow blog posts. I offer free training and personal assistance for
people to start their own online business.

Professional Web Site: Proven Promoze

Reply

sam antha jay ne | Window Shopper | 1 0/2 5/2 01 3 - 3 :4 6 am

Hi Caron, great work!! A motivating discussion is worth comment. You have chimed in with
some tips for people who want to start their own business. This post was edited to remove
a link. Please review our Community Best Practices for more information about how best to
participate in our online discussions. Thank you.

Professional Web Site: Samantha Jayne- Business Coaching | Leadership Training |

Corporate Workshops in Sydney
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kade1 1 9 | Window Shopper | 3 /2 5/2 01 3 - 9 :4 7 am

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jam es-sbsbroup | Window Shopper | 3 /8/2 01 3 - 1 :3 7 am

Yes, I find this article very useful for all the new entrepreneur. According
to me most important points that are to be noted is
* Business Plan: What kind of business you want to do.
* Financial Section: How much you want to invest in initial stage of business
* Business Location: As this part is important because you have to set up
according to the country Company Act. For this step you will need to take
help from consultancy firm who can help you to set up your company.

Professional Web Site: Company Formation in Singapore

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ciptoindonesia | Window Shopper | 9 /1 /2 01 3 - 1 2 :4 8 am

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Sandy Curl | Window Shopper | 8/2 7 /2 01 3 - 5:07 am

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11/25/13 Starting a Business? 10 Steps Every Entrepreneur Needs to Know | SBA.gov

com pany form ationsindia | Window Shopper | 2 /1 /2 01 3 - 1 1 :4 7 pm

Memorandum of Association: - Company name, the registered office address and the
company objects are essential to form a company. The company's memorandum
delivered to the Registrar is signed by each subscriber in front of a witness who must attest
the signature. This post was edited to remove a link. Please review our Community Best
Practices for more information about how best to participate in our online discussions.
Thank you.

Professional Web Site: Company Registration Process

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Transcription Vendors | Window Shopper | 1 0/9 /2 01 2 - 9 :1 5 am

Thanks for sharing such an informative post all your ten steps are just
superb. Writing a business plan is the most effective way, as I feel is a
good start is half finish. Planning helps to come across various pros and
cons in a business. Sharing ideas, views, suggestions with any intellectual
is of great help. They can help as a Guide, Mentor in the mission and vision
of the business.

Professional Web Site: Transcription Vendors

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WhileIm Young | Window Shopper | 9 /1 1 /2 01 2 - 1 0:1 8 am

i think this is useful...but im still young.

Reply

rm bonger | Window Shopper | 9 /6 /2 01 2 - 1 :2 8 pm

I agree with your 10 points, however I would add an 11th,. As a very first
step try to do a rough break even or viability analysis or a very preliminary
Cash Flow analysis.
Then start on your Business Plan. I do question the order in which you
present the 10 points. The Business Plan should include information regarding
company structure, location,so points 3 and 5 should be decided before
finalizing the Business Plan

Professional Web Site: http://www.evansville.score.org

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