Step 1: Create a Business Plan
Are you interested in starting a business? Creating a business plan is one of the most important steps you will take because the plan serves as your road map for the early years of your business. The business plan generally projects 3-5 years ahead and outlines the route a company intends to take to reach its yearly milestones, including revenue projections. A well thought out plan also helps you to step-back and think objectively about the key elements of your business venture and informs your decision-making on a regular basis. The Small Business Administration has information and sample business plans to help you get started.
You can also use your completed business plan to discuss next steps with a mentor or counselor from an SBA resource partner such as SCORE, a Small Business Development Center (SBDC) or a Women’s Business Center (WBC).
Step 2: Decide on your business structure and register your business name
Before selecting a business structure, consult your attorney and/or accountant as each structure carries with it unique legal and tax consequences.
Your business must be registered. It’s a good idea to perform a name search online or in office to determine if the proposed business name has already been filed. If you’ve organized as an LLC register with the N.C. Secretary of State. Corporations also register with North Carolina.
Step 3: Get license requirements
The City of Raleigh does not require a business license to operate a business within Raleigh City limits. Depending on the nature of your new business, federal, state, and local licenses and permits may be required. In most areas, there are zoning restrictions that may prevent you from operating a business from a particular location including your home.
Step 4: Obtain the necessary tax information
You’ll need an EIN (Employee Identification Number) if you will be hiring employees, forming a partnership, or corporation. Read more about EINs and apply online for yours with the IRS.
To collect sales and use taxes, you’ll need to register the N.C. Department of Revenue. You will receive information from the Department of Revenue on sales and use tax reporting and remittance requirements.
Step 5: Identify sources of financing
Small business owners in North Carolina have financial resources available at the federal level and right here in North Carolina. Learn more about the access to capital available to small businesses here.
Step 6: Learn about employer reporting requirements and responsibilities.
Learn more about how to register as an employer, unemployment insurance and worker’s compensation insurance.
Additional Considerations:
- Consult with an accountant for bookkeeping and tax purposes.
- Obtain insurance.
- Review contracts with legal counsel.
- Review applicable regulations (OSHA, EPA, Labor, etc.).
- Register trademarks or patents.
- Develop policy and employee handbook.
- Join trade associations, chambers of commerce, or other professional organizations and connectors.
Step 7: Selecting and using professionals
The expertise of external professionals is instrumental in starting a business. They offer data-driven perspectives that empower you to make well-informed decisions. A successful business is often backed by a “BAIL” team, a group of seasoned professionals who provide invaluable advice and guidance on key aspects of launching and managing a thriving business. The acronym “BAIL” represents Bankers, Accountants, Insurance Providers, and Lawyers. It’s important to remember that these professional advisors typically anticipate compensation for their services.
SBA-funded entities like SCORE, SBTDC, Women’s Business Centers, and Veteran Centers are key resources. They provide clients with references to BAIL professionals. The Chamber of Commerce also provides a network of business professionals.