Your Ultimate Guide to Starting a Home Based Business.

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Running your own business has always been in your mind. But you couldn't take the time out to learn how to start a business. Now might be the perfect time to learn about running a small business from home. More people than ever before are working from home and starting their home-based businesses. And obviously, the reason is the COVID-19 pandemic.

There are a lot of benefits to starting a business from home. But only a few businesses make it to a successful venture. We'll break down everything you need to know about starting a home business step-by-step in this tutorial.

So, if you're wondering how to establish a small business from home, you'll discover that the process necessitates strategy, preparation, and the necessary documents (often legal).

Although it may appear daunting at first — as it often does when establishing a business — if you take things one step at a time, the process will become a lot more manageable.

Furthermore, there are a lot of aspects you don't have to worry about while beginning and running a business from home, such as obtaining an office or retail space.

1. Select the Name and Legal Structure of your Business

When selecting a legal structure, you have four choices.

• Sole proprietorship

• Partnership

• Limited Liability Company (LLC)

• Corporation or S-Corporation

2. Write a Business Plan

Failing to plan is planning to fail. If you haven’t already, prepare at least a preliminary business plan. Outline the core service or product that your business will provide. Layout the sources and allocations of finance for your business.

3. Obtain your Federal Employer Identification Number (FEIN).

Apply for a Federal Employer Identification Number (FEIN) from the IRS if your business is set up as a corporation, limited liability company, or a partnership (or a sole proprietorship with workers). You will need FIEN for payroll processing and to open a business checking account.

4. Open a Business Checking Account

Different banks offer multiple options for checking accounts, each with a separate set of features. Make sure you meticulously plan and compare all of them.

Nowadays, online banks are quite popular among startups and established businesses alike. Zilbank, for instance, offers a free business checking account. Moreover, you get a lot more features at cheap prices with online banks due to their low operating costs.

5. Identify Possible Lease Office, Warehouse, or Retail Space

You might not need an office or warehouse straight away, but once your business starts rolling, it will be difficult to look for an office or warehouse in a short period.

Arrange for office space to be leased, depending on your sort of business (retail, office, or warehouse). Getting in touch with a business realtor in your region might be beneficial. Make sure to plan for utilities and workplace furnishings as well.

6. Obtain Licenses and Permits

A. Federal Permits

You may require a federal license or permission depending on the sort of business you run.

A federal license or permission is not required for the majority of enterprises. However, if you are involved in one of the following activities, you should contact the relevant federal agency to find out what the criteria are for conducting business:

• Financial planning (http://www.sec.gov)

• Pharmaceutical manufacturing (http://www.fda.gov)

• Meat processing (http://www.fda.gov)

• Broadcasting (http://www.fcc.gov)

• Transportation on the ground (http://www.dot.gov)

• Selling alcoholic beverages, tobacco products, and guns (http://www.atf.gov)

B. State Licenses

A state license or authorization is required for several activities and professions. Although laws differ from state to state, if you work in one of the following professions, you should contact the appropriate state office to find out what is required of you:

• construction companies;

• banks;

• insurance companies;

• physicians;

• appraisers;

• accountants;

• barbers;

• Real estate agents;

• auctioneers;

• private investigators;

• private security guards;

• funeral directors;

• bill collectors;

• cosmetologists

Licenses and permits are issued by the state based on the items offered. The type of goods supplied determines some state licensing requirements. Determine your business's license needs by contacting your state licensing authority. Most states, for example, require specific permits to sell:

• alcoholic beverages

• lottery tickets

• fuel

• weapons

C. Permit to Collect Sales Tax

If your firm sells tangible goods inside the state in which it operates, you may be required to collect and pay sales tax. Obtaining a State Seller's Permit or Resale Permit is typically the way to go.

D. Business Permit

Even if you operate a home-based business, most cities and counties require you to get a business license. This is a permit that allows a corporation to conduct business in a specific city or county.

7. Hiring Employees

If you want to hire yourself or others as full-time or part-time employees, you may need to register with the proper state agencies or purchase workers' compensation or unemployment insurance (or both).

8. Accounting and Book-keeping

Set up your accounting and record-keeping systems, and learn about the taxes that your new business must pay.

You can use online platforms such as Online Check Writer for

9. Obtain Commercial Insurance

There are many different forms of company insurance, however, they are commonly grouped as "General Business Insurance" or "Business Owner's Policy." From product liability to business cars, this may be covered. Good coverage can cost as little as $300 per year and provides a valuable layer of security.

10. Organize and Systemize

Prepare the company as if it were to be taken over and controlled by someone else. This involves having a system in place to handle orders, pay bills, pay staff, pay taxes, and keep track of your permits, among other things. Strive to automate and streamline the operational side of your business as much as possible so you can focus on developing it.

11. Create a Business Identity

Order your company's business cards, letterhead, and promotional materials. A properly designed logo may give your company a more established and professional appearance.

12. Spread the Word (Marketing)

You need to get the word out now that you've set up the firm for success. Make a marketing strategy for your products and services that focuses on your ideal client.