Business Checklist

Step One: Business Idea

1. • You will get all sorts of advice about picking the “right” business idea for you.
   • The truth is that nobody but you can decide what business is best for you.
   • Regardless of whether it is the next greatest idea or the most unique concept ever, it is most important that you pick something you are passionate about and you are committed.
   • The best part about all of this is that you have taken the first step to being independent and not dependent upon someone else and stuck in the “employee” mindset.

Step Two: Business Structure

1. • Do you plan to have partners and/or will you need investors?
   • Are you going to need employees?
   • Will you need a physical location or can your run your business virtually?
   • You should pay particular attention to what goods or services you are selling, the costs involved to operate your business, profit margins, and time commitment.
   • As you put together your plan you can identify any adjustments needed before you start spending any money. The best part is that planning is free and can provide you with some incredible advantages.

Step Three: Business Registration

• The next step is to make sure that you get your company registered.
• The vast majority of times we recommend forming an LLC in the state where you are planning to do business.
• If the business is run virtually or you are selling products/services nationwide, you may chose better “corporate” friendly states to register your business.
• If you are concerned about liability protections or keeping your personal information out of public records it is very important that you discuss with your business attorney your options for choosing different states to register your LLC.

Step Four: Operating Agreement

• Some states require that you have an operating agreement and some may even require it to be filed with the state, but even if your state does not have those requirement, it’s still so very important that you have one.
• An operating agreement is the foundational document of your business. This important document will outline how your business runs.
• Your best option is to invest in a customized agreement drafted by your business attorney specifically for you and your unique set of circumstances.

Step Five: Tax ID/EIN

• It is absolutely essential that you register your business with the IRS.
• Anyone can use their SSN to register their business with the IRS and get a Tax ID.
• Just because your business has a Tax ID does not mean you will have to pay extra taxes. If done correctly, having an LLC can actually decrease your personal income taxes.

Step Six: Permits and/or Licenses

• Depending on your business, you may be required to obtain local, state, or federal permits and/or licenses.
• Research your specific type of business so you comply with local, state, and federal regulations.
• Most times, the cost to get these things in place is much cheaper than paying the fines if you are not in compliance.

Step Seven: Tax Considerations

• It is very important that you are keeping accurate and updated records.
• Many first-time business owners do not realize they are supposed to pay business taxes every quarter rather than waiting until the end of the year.
• If your product or service requires payment of sales tax, you must make sure that is taken care of immediately.
• It is much easier to get everything set up correctly in the beginning as opposed to waiting too long to try to go back and fix it.
• You should contact a CPA about taxes or bookkeeping.

Step Eight: Business Bank Account

• After registering your LLC and obtaining your Tax ID, the next thing you should do is get a bank account for your business.
• You could potentially lose your “corporate shield” liability protections if you use your personal bank account for business.
• You should make sure to establish a good relationship with a business banker and get access to a line of credit.

Step Nine: Insurance

• There are all sorts of insurance that help protect your business: premises liability, business interruption, cyber security, data breach, etc.
• Please remember that certain licenses or contracts (like commercial leases) can require you to have insurance in place.
• No one likes to pay for insurance, but it is important to protect your business.

Step Ten: Protecting Your Brand

• Most people think if they are protected if they register a website or name on social media.  That is definitely not the case and you should always check if your name is available to be trademarked before you build a brand that is not protected.
• Trademarking your name will help you build a strong brand and ensure that no one can take what you have built.
• You should always work with an intellectual property attorney to see if your brand can be protected with a trademark.

DISCLAIMER

The content of this checklist is provided for informational purposes only and is not intended to constitute tax, financial, or legal advice. You should not rely upon any information contained in this checklist for tax, financial, or legal advice. Downloading this checklist or signing up for Venerable Law’s email list is not intended to and shall not create an attorney-client relationship between you and Jason Sampson or Venerable Law. Messages or other forms of communication that you transmit to Jason Sampson and/or Venerable on social media or via email will not create an attorney-client relationship and thus information contained in such communications may not be protected as privileged.

Neither Jason Sampson, nor any associated law firm makes any representation, warranty, or guarantee about the accuracy of the information contained in this checklist or in links to other social media accounts or websites. This checklist is provided “as is,” does not represent any outcome or result from downloading or using of this checklist. Your use of this checklist is at your own risk. You enjoy this checklist and Jason Sampson’s social media platforms and its contents only for personal, non-commercial purposes. Neither Jason Sampson, any associated law firms, nor anyone acting on their behalf, will be liable under any circumstances for damages of any kind.