An aspiring entrepreneur’s biggest dream is to one day start their own company and be their own boss.
Whether you’re looking to freelance, how to start a consulting business or are starting a full-blown business, you have the luxury of making your own schedule and controlling everything you do. This freedom doesn’t mean that the work is easy or that building your own company isn’t scary. While the process can be daunting, it can be easier than you think to start your own business, and you can do a lot of the steps all from the comfort of your house.
While the start-up process differs slightly depending on what you want to do, there are a few universal steps that you can do from home to help you start your own business. It’s completely possible to start a successful business from your home.
Do these three things to set the foundation for your business.
1. Get your Employer Identification Number (EIN).
For those who are planning on employing others or are planning on forming an LLC, corporation or partnership, an essential part of starting your business is obtaining an EIN. Your EIN is your federal tax number; it’s used to identify your business.
Even if you’re a business that isn’t hiring other employees, you may want to get an EIN anyways. When you don’t have an EIN, you have to use your Social Security number (SSN) to identify your business. Getting an EIN allows you to keep your Social Security number private, reducing the risk of identity theft. You don’t have to pay any fee to get one. Plus, the process only takes a few minutes.
You can get your EIN in minutes using the IRS website. To start, you have to determine your eligibility. A person is eligible to apply online if their company is located or operates in the United States. A person that is eligible has to have a valid Taxpayer Identification Number, such as ITIN and SSN. You want to understand the online application and complete it within one session. You want to be aware that the online session will expire after 15 minutes of inactivity. When you submit your application, you’ll get your EIN right away.
2. Get your Business License.
Another essential thing that you need for your business is a business license. It’s another form that only takes a few minutes to fill out. When you’re filling out your form for your business license, you want to use your EIN to identify your business.
To get your business license or any type of permit from home, you want to visit a website like Business.gov. You’ll have to enter the name of your city and state to find the licenses and permits that you need. You’ll be able to select the appropriate one based on the business from a drop-down menu. If you don’t see an option for your business then just choose General Licensing.
If you’re unsure of what licenses you need for your business, you can also find the requirements from your city, state, and federal on a page when you search it.
Depending on the type of business you have, there might be more information available for you.
3. Get Financial Situation in Order.
Another way you can start your business is to get your financial situation in order. You can do this a number of ways. One of them is to use a tool like Personal Capital, which has plans for all types of financial situations.
Before you look into tools like Personal Capital, you can do simple steps like creating a spreadsheet. With spreadsheets, you can enter the money that you get and money that you spend. Bookkeeping can be as simple as that. All you need to do is create revenue and expenses columns. You can add the items as your business grows.
When you’re starting your business, you don’t want to spend hours upon hours messing with accounting software when you have no data to input. You want to spend that time creating revenue and simply record what you make. Worry about tools once you have your business in place.
The Bottom Line
Whether you’re starting your business on the side or are dedicating all your time to take on this endeavor, you need all the help that you can get to prepare yourself for success. While the process may seem daunting, if you take the steps needed and stay organized then you can fulfill your dreams.