3 Foundational Steps to Launching Your Business
3 Foundational Steps to Launching Your Business

3 Foundational Steps to Launching Your Business

Note: For full transparency, this blog post includes an affiliate link. If you use it, I may earn a small commission at no extra cost to you. I only recommend products I personally use and trust.

Not sure how to “officially” start your business?

These three fundamental steps will help you get your idea off the ground confidently, quickly, and easily. Dive into each step below, and don't miss my accompanying video for deeper insights from my own personal experiences as an entrepreneur.

Step 1: Forming an LLC:

  • Importance: An LLC, or Limited Liability Company, provides a protective legal shield between your personal assets and your business's debts or liabilities. Beyond legal aspects, creating an LLC is a psychological step forward. It signifies the birth of your business entity – your entrepreneurial 'baby'. This shift in perspective can be a driving force in your commitment and approach to your venture.

  • Steps:
    1. Visit your Secretary of State's website.
    2. Navigate to the business or LLC formation section.
    3. Fill out the required information.
    4. Pay any associated fees (usually around $50).
    5. Once approved, save your LLC certificate.

Step 2: Getting an EIN Number from the IRS

  • Importance: Think of the EIN (Employer Identification Number) as the Social Security Number for your business. It's essential for tax purposes and other official transactions.

  • Steps:
    1. Go to the official IRS website link. Note: Avoid third-party sites that charge for this service. The IRS provides it for free.
    2. Complete the EIN questionnaire.
    3. Upon completion, an EIN will be instantly generated.
    4. Save the EIN confirmation letter – it's essential for various business needs.

Step 3: Setting up a Business Bank Account:

  • Importance: Establishing a separate business bank account is vital for clarity in finances. Mixing personal and business expenses muddies the waters and complicates financial assessments and tax filings.

  • Steps:
    1. With your LLC certificate and EIN number in hand, approach a bank of your choice (online or physical).
    2. I personally recommend Novo.co for its user-friendly features and excellent customer support. The digital age enables seamless online transactions, making physical bank branches less necessary.
      1. Note: using my referral link gives us each $40 when you open and fund your new account.
    3. Ensure you maintain a clear boundary between personal and business finances for clarity and simplicity.

Wishing you all the best. Remember, while these steps provide the practical foundation, remember that the real essence of entrepreneurship lies in personal growth and the challenges you'll navigate.

For any additional questions or to request specific startup topics in future posts, feel free to email me!

Prof Ingram lingram@bus.olemiss.edu

Upcoming Topics in the "Entrepreneurship Essentials" Series:

  • The origin story behind "Earned Wisdom, LLC"
  • Considerations for selecting a state for your LLC incorporation
  • Delving into the pros and cons of venture capital vs. bootstrapping
  • Key features in Novo.co that benefit entrepreneurs
  • Guidelines on compensating yourself from your business earnings
  • An introduction to the "Profit First" cash flow methodology
  • Determining the right time to file tax returns for your startup
  • Leveraging Stripe.com for reliable credit card transactions
  • Special Request: Got a topic in mind? Email me your suggestions!

Disclaimer

Remember, this content isn't graded—it's an added resource for your benefit. My insights are based on my distinct entrepreneurial journey, so they might not be universally fitting. Always prioritize personal research and seek expert counsel as required. Occasionally, I might embed affiliate links in my posts. These provide me with a commission but rest assured, they are only for products or services I personally vouch for, based on thorough evaluation and genuine use in my business.