Entrepreneurship offers many rewards, but you must be prepared and committed. Take whatever time is necessary to determine if you are ready; this will be time well spent.

Business Plan

The first step is to write a business plan. This is a written guide to starting and running your business successfully. This plan will encourage loans, promote growth, and provide a map for you to follow. A business plan can also be valuable as a management tool. Although a business plan is based on predications and actual results can be surprising, writing a business plan can help an entrepreneur identify potential problems as well as opportunity.

>>Details on writing a business plan.

Business Entities

When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a relatively new business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.

>>Types of Business Entities

Laws and Agreements

Consult an attorney regarding federal and state laws governing creation, ownership and operation of the entity. You should also request legal advise when drafting and executing agreements among principals if applicable.

Filing With State and Federal Government

File with state the for certificate of assumed name (DBA). You will need to contact an accountant for details on where to file for certification of assumed name.

You will then need to obtain a federal employer identification number. You will need to contact an accountant for details on how to obtain a federal employer identification number.

File incorporation, limited liability company, or partnership documents with the state. For individuals who wish to have a S-Corporation, you must file an S-Corporation election shortly after successfully incorporating. You will need to contact an accountant for further details.

Obtain state tax identification number. You must file required documents with state unemployment ans sales tax authorities. Every state will have slightly different procedures.You will need to contact an accountant for further details.

Obtain required city/county/local business licenses/permits. See your state government website for further details.

Other General Startup Considerations

• Establish a business checking account.
• Conduct necessary corporate or other organizational meetings as well as elect board members.
• Establish books for the new entity.
• Send notification of the business name and start fate to customers, vendors, banks etc.
• Consult with insurance professionals to obtain business liability and workers' compensation coverage.