Steps to Starting A Business: Step One (1 of 5)

Written by Tammy Durden

Steps to Starting A Business

When you decide to start a business it is easy to become panicked or overwhelmed once the decision is made. That is because there are so many details to complete. It is normal to be a little concerned after all business ownership is a risk.

You may not even be sure of what steps to take first. Do not fear, I love assisting start-ups in their journey! This series will try to help those going through the first Steps to Starting A Business.

With that said, let’s discuss the initial, general, steps to starting a business.

“There is something special about realizing the Dream of Business Ownership!” 

-TS Durden-

I want to talk about the first steps to take when setting up your company.  This series attempts to take you through some general steps and discuss how to accomplish them.  Some of these steps may seem obvious or somewhat simplistic, however, it is a beginning and often we can overlook the simplest of things, even forgetting them, because our eye is on the ‘big picture’.  We want you to realize the ‘big picture’ dream and I hope that by guiding you through the practical steps, I may help you get to the beginning of your business success dreams.

Step #1:  Decide What Type Of Business 

When you begin a business you must decide what type of business you are creating.

1. What type of Company will you be?  

Determine, and even research these terms to decide what fits your company’s needs the best.  You will have to know if you will be an LLC, solopreneur, corporation, or partnership.  This often depends on the type of business, if you have a partner, and if you are ready to invest a little money in a lawyer.  

Please keep in mind that the following are very brief, non-technical descriptions and always consult a lawyer if in doubt.

Layman’s Definitions of Company Type
  • Solopreneur – Can be a one-person shop and even someone who is ‘DBA’, or ‘Doing Business As _______’. Usually, if you are a DBA, you do not need to file for a Federal Tax ID, as you can use your Social Security number to ID your company as well.
  • LLC – A Limited Liability Corporation – in general terms, this is for those who want to take the burden of fiscal & moral responsibility off their own personal (and even the home/family) and put it solely on the company.  This is one of the most common types of corporations, especially for small businesses.
  • General Corporation – There are numerous & specific types of corporations and as we are mostly geared to micro and small businesses with this series, I do not think it benefits us to go into details here.  I will, however, say that if you want to create a corporation (including an LLC), it would be wise to consult a lawyer and pay for filing as a corporation, the business name search, and filing for a Federal ID.
  • Partnership – simply put, it could be said, this is like 2 solopreneurs coming together to form 1.  It does not have to involve only 2, it can involve multiple people.  This can be formed as an ‘LLC partnership’ as well. It only means that there is more than one owner of the business. In other words, the business (profits, liability, assets & all) are owned by all within the partnership.  Keep in mind that partnerships are not always a 50-50 split. It can be split any way you agree upon.  As an example, it can be split 20-80 or 95-5 and even 90-10 (not to mention multiple other combinations).  Be sure to come to terms prior to paying a lawyer or anyone else first, this way you are not paying extra as you change your minds and go back and forth, with a lawyer involved, as you will be charged for each minute – even an email minute.

A Few Last Things

As mentioned, you should apply for a Federal ID for your company also.  This is an ID number that will be associated with your company for the Federal government. This will be needed for multiple reasons, including opening a business bank account, filing taxes, and more for your business.

Lastly, I would be remiss if I did not mention that there are many resources out there to help. The Small Business Administration through the U.S. Government is a wealth of information and even has links to some other steps to starting a business.  S.C.O.R.E also offers many resources and mentors as well. Another great organization is the local Chamber of Commerce.

No matter what type of business you have, selling products or supplying services, you should take this first step.  Making decisions that will affect the lifespan of your business is important and should be thought out thoroughly, prior to starting the company.

I am so excited for you as you start down this road.  It can truly be freeing to own your own business.

Watch for Step #2 to come shortly!

Thanks for reading, I really appreciate it.

with love from Tammy Durden of Fearless Business Boss

Disclaimer – We attempt to be thorough and provide current information, however, we are not a legal firm nor associated with a State’s official office.  We only wish to offer helpful information for business owners or those who want to be business owners. We do not claim to have all of the answers on this topic. Fearless Business Boss nor Tammy Durden will not be held responsible or liable for missing or inaccurate information or information that seems to portray something not true; as we are relaying information in good faith to help others. We encourage you to do your own due diligence and research. We also think it is wise to consult with a business lawyer at some point in the process before opening your business up to review your contracts, paperwork, and anything else.  We are not responsible for missing information or your misunderstanding the passing on of information, or misconstrued information on the reader’s part. At times, opinions will also be included, but these are the sole opinion of the writer, not necessarily of the Company. We will not be held responsible or liable, for any losses or perceived loss related to the ‘Starting a business’ blogs.

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