When starting a business, many new owners focus on the big picture, from ideas for a product to the potential for success. However, these big-picture plans may never be realized if an owner fails to properly address the finer points and administrative tasks necessary to get the business up and running.
Administrative tasks may not seem as important as other elements of running a business, but they can have a profound impact on how and if your business succeeds.
As noted in articles like this one from Inc.com, initial administrative tasks often include:
- Choosing the business name. Whether you continue to do business under this name or not, choosing a business name is crucial. The business name will be part in business-related paperwork, it also creates a sense of legitimacy.
- Selecting an entity. This means deciding on whether your company will be an LLC, a sole proprietorship, a corporation or something else. There are pros and cons of each type to consider, so be sure you are careful with your selection.
- Setting up a business bank account. It can be a big mistake to use your personal accounts for business expenses. Rather than risk the confusion that comes with doing this, set up a business bank account right away. Also, think about how you plan to keep and maintain accurate financial records.
- Applying for a federal tax number. This number is crucial in identifying your business for tax purposes. Without one, you will have to use your personal Social Security number.
- Filling out the form for a business license. This could include multiple state and/or federal licenses and permits. If you fail to secure the necessary permissions, you could face costly delays and penalties that jeopardize your business.
These are just some of the basic administrative tasks that any new business owner in Brentwood should address as soon as possible.
While you may be able to complete many of these online and in a matter of days, questions and concerns often arise, especially considering many people are unfamiliar with the nuances of starting a business. In these situations, contacting an attorney for guidance can be helpful.