5 Key Factors You Need To Know Before Starting A Business!!!

These are five things you need to know before you start your own business.

1. Incorporate your business in your state

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Regardless of size, it will be required for you to incorporate or register your business with your state agency. There are a couple entities to choose from and each one has it's pros and cons for tax purpose. In any case, you should research the following entity types Sole Proprietorship, Partnership, Limited Liability Company, Cooperative, S-Corporation, and C-Corporation. To learn more, you can visit SBA website.

2. Register for an EIN/TIN # with the IRS

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This applies to all. In all states, it is required for you to register with the IRS to acquire your Employer Identification Number (EIN) or Federal Tax Identification Number (TIN). They're the same thing. This number is how the federal government tracks your business and the money you make. You can register and request your EIN/TIN on the IRS website.

3. Create a business plan

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When starting a business it is recommended that you should create a business plan as a guide and as a plan of action. Most people would naturally dive into business because they had a great idea but in most cases, you need a plan and map out how you will get the business going. Having a business plan is a must and you can create one using LivePlan a.k.a Business Plan Pro by Palo Alto Software company.

4. File your Quarterly & Annual Taxes

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Lastly, prepare yourself to file monthly or quarterly and annual taxes with both your state and the Federal Government. This is one of the most important aspects of running a business. You never want to get on the bad side of the IRS so if you are not a numbers person, it is important to hire a CPA firm or accountant to manage your books. There is software out there that can help you manage your books if you are a do-it-yourself kind of a person. I am torn between QuickBooks and Wave Accounting. They both have their pros and pros. Wave is a newer business compared to Quickbooks but Wave is also for FREE (for now).

5. Lastly, drink lots of coffee!

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As an entrepreneur, you will spend many days and nights working long hours. Coffee will become your friend and days will start to blend together. To keep me going I like to drink Chameleon Cold-Brew because it's convenient and it tastes good. The also have a variety to choose from and they taste great. If you don't like bitter or strong black coffee, then Chameleon Cold-Brew is for you!

Again, coffee will become your best friend.