Starting a Business? Do These 6 Things First

So you decided to start a business - congrats! But now what do you do?

Here’s a quick outline of your very first 6 steps to set your business up for success. (In order! do not skip the order!)

  1. Determine your legal structure & file necessary paperwork. Sole proprietor? LLC? C-Corp? There are many options to choose from and it’s imperative to choose the RIGHT one for your situation. This step is definitely worth consulting with an attorney if this is your first business.

  2. Get an EIN with the IRS (it’s free). You’ll need to put the name and type of business structure when you apply, which is why you have to do step 1 first. Click here to start.

  3. Get a business bank account. This isn’t only necessary for liability purposes (if you choose a separate entity for your business), but also to keep your accounting records clean. It can be difficult to separate the two later, and ensures you keep accurate, up-to-date records.

  4. Set-up a state employer account. This is necessary if you plan to hire employees and is the payroll account you will establish with the state your employee(s) are located in, which will also allow you to remit payroll withholding taxes.

  5. Pick a payroll platform. There’s many options out there (ADP, Gusto, Patriot, etc.) but it’s going to save you a lot of time and headache to get on a platform that allows you to electronically pay your employees and send in required payroll reports to the government.

  6. Pick an accounting system. As with payroll there are many different options out there (Freshbooks, Xero, QBO, to name a few). Choosing one is important because you’ll need a way to accurately track the income & expenses associated with your business. Not only do you need these numbers for tax purposes, but are also needed if you want to perform any type of analysis on the performance of your business model. Having an accurate picture of your firm’s financial health is crucial for long-term success.

If this all feels overwhelming - a Breakaway advisor can help you choose which payroll and accounting platforms are right for you, and ensure you’re using them (and other tools) to your greatest benefit. Contact us to learn more about how we develop custom solutions for every client, that can change and scale with you as your business grows.

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