Opening a business is just the start of your entrepreneurial journey, with lots of tasks ahead that need to be accomplished to keep the venture running. Owning a business is more than a full-time job that needs your attention, effort, money and hard work. A new business entails different requirements which must be accomplished to ensure that you operate legally and avoid eventual problems as you perform daily transactions and as your business grows.
Here are some of the basic requirements upon opening a business to avoid hitches in your operations in the days to come:
Getting Your Federal Employer Identification Number (EIN)
Obtaining an EIN is the first step that must be accomplished for any new business. A Federal Employer Identification Number is a nine digit number provided by the IRS and assigned to businesses for tax filing and reporting purposes. EIN is needed to hire employees, have a 401(k) retirement plan, inherit or purchase existing business that you run as a sole proprietorship, integrate or form a limited liability company, and when filing for bankruptcy. Obtaining EIN is also recommended to avoid identity theft and establish an independent contractor status. You can accomplish your EIN application through the IRS or online.
Secure Local Permits and Licenses
Different states may require different permits and licenses for particular business types and you need to be knowledgeable of these requirements. An entrepreneur with a newly opened business needs to secure business permits and other related permits to operate within the area, like health and safety permits, and others.
Scale Your Manpower Needs
As soon as you open your business, you must have an idea of how many people you will be needing to help you run your business, including key full- time positions, administrative posts, technical posts, and others. This is so you can start your hiring process as soon as possible and that your business can run as intended sooner. With this, you also need to have a compensation plan that is suited to the wage standards in your area, along with other benefits that must be given to your employees. Make sure that you comply with employment requirements of the locality you are operating to avoid hitches due to wrongful labor practices.
Plan Your Product or Business Launch
Your product or business launch is your first major step in marketing and it can make or break the crucial first months of your business. Make sure to plan it out well with as little room for error as possible so the event will capture your target market effectively. The effects of a successful business or product launch will last a long time and will affect your sales in the days and months following the event.
Particular businesses may have more pressing requirements than those mentioned above. Make sure to get informed of these requirements before you open your business and ensure that you have all legal grounds covered.
Article Submitted By Community Writer