The First 5 Steps to Starting Your Own Businesess

Before we jump in, I want to talk to my business owners for a second.

I’m talking about those of you who’ve already started selling your products and services.

Y​ou may think that this video isn’t for you – that you’re too advanced for this post.

But wait.

Have you ever been driving along, minding your business, bopping to your favorite jam, only to realize you missed a turn and now you’re driving North instead of East? And you don’t know what’s in “North” because you’ve never driven North before.

And now you’re lost.

I’ve spoken to a lot of business owners who’ve missed a step or two just like that while setting up their businesses legally.

And I don’t want that for you. #DontBeThatPerson

Watch the video or read the list below and check to make sure you’ve successfully completed each step.

*Please note that I am not a lawyer and this isn’t legal advice. It’s a practical guide to creating a solid foundation you can build your empire on. Consult with a small business lawyer to get specific, targeted legal advice.

2. Register your business.

There are several business types you can choose… LLC, Sole Proprietorship, C-Corp, S-Corp, etc.

And each type comes with it’s own registration process.

Your SOS website can help you here.

They will have written up descriptions of what each type is.

But if you’re still in doubt, get in touch with a small business lawyer and they’ll walk you through it.

Most of my clients choose an LLC, but do the research and choose what works for you.

3. Get a business license

Once you’re registered, get a license to operate your business in your city/county (wherever your business address is).

A lot of my clients think that once you have your LLC, you’re good to go. 

Nope.

Now that your business exists in the eyes of the government, you need permission to sell goods and services at your location.

The type of business license varies by industry and location. You may even need a permit for some things (like, signage).

Enter [your city] + “business license” to find the Business License Division for where your business is located. For example, “Atlanta business license”.

Again, call the office and speak to someone. 

I had to go through this step twice because I went to the wrong office. *shrugs* 

4. Go to irs.gov and get an EIN (tax ID) for your type of business.

This step is sort of optional… but probably not.

Not all businesses need an Employer Identification Number.

But I decided to get one since I treat myself like an employee and hire people to help with the business. I also chose to get one because of how I file my taxes.

Not sure you need one? Click here to read the IRS guidelines.

This is a free process, I’ve seen websites charging for it which is just… 😒

I got my ducks in a row (see steps 1-4), applied for an EIN for $0.00 and got one the same day.

5. Set up your business bank checking and savings account.

Yes, even before you start making money.

You want to start separating your business dollars from your personal dollars from the very start (or as early as possible).

It’ll raise fewer flags for the IRS and it’ll make filing your taxes easier.

Every penny you make from your business should be depositied into your business bank account first.

Once it’s there, pay the business first (deposit a portion into a business savings account), then pay its employees (that’s you!).

This step involves a small, but mighty, mindset shift.

You’re going to go from “I closed a 6-figure deal last month” to “My business got a new client worth 6 figures.”

Which of these steps have you taken? Am I missing any?