Starting a new business can be a unique and exciting challenge. However, there are a few steps that all companies will go through as they get ready to start doing business. First, a company will generally want to create a business plan as this will help guide the decision making process of the company moving forward. It will also serve as a guide that can help investors determine if they want to provide financing for the company.
After a business plan has been written and financing is obtained, a company may have to determine its business structure. For instance, a company could decide to operate as a sole proprietorship because it requires less paperwork, but it could also opt to do business as a corporation, which may offer some tax benefits for owners of the company.
Once the business grows to a certain level, it may become necessary to hire additional help. Before hiring an employee, a company will need an Employer Identification Number, which is used to help the government track payroll tax. Employers are required to withhold payroll taxes, and the employee needs to tell the employer how much to withhold each pay period by filling out a W-4 form.
New business owners have many decisions to make regarding financing, structure and employment. Therefore, they may wish to talk to an attorney in the early stages of planning. This may be worthwhile as an attorney may be able to help draft corporate documents and any contracts that a company may enter into with vendors or investors. Legal counsel may help protect a company’s intellectual property, defending any trademarks or copyrights that the business owns.
