These steps with help you formally create your business entity with the proper governmental authorities:

1.  Choose your business entity structure, whether that is an LLC, partnership, C Corp., S Corp., or other option.  You may want professional advice on which is right for you.  Vensight can help you with this step, as well as steps 2 – 5.

2.  Be legal. You need to register your business with all required governmental entities: State, County and/or City. In the State of Utah, you will register at the State’s One-stop Online Registration Center (click here) as well as with the city or county in which your company is located.

3.  Apply for an EIN from the IRS. It is easy and quick to get your EIN. You can access the electronic submission form online at www.irs.gov.

4.  Be organized. Create a 24 month projected Cash Flow of all the different expenses you will have for your business. Estimate the time periods where you will have certain expenditures. Don’t just put arbitrary numbers in the cash flow projection. Do the necessary research/reading/asking of what different things usually cost. If you have experience in the industry, you will have a good idea for many costs, anyway.

5.  Prepare a business plan and executive summary (business plan includes the cash flow projection). While going through the motions of writing a business plan, you will get to flesh out who your competition is, how you will make money, and the strengths and weaknesses of your proposition. You may find that as you go through some of the research in creating your business plan, that you may change your company’s focus and you may even discard the business altogether.

6.  Buy business liability insurance. You will have to insure your company, plain and simple. It is usually only a few hundred dollars every year. For professional service companies, you will need the additional errors & ommissions insurance, which doubles your yearly insurance premium payout.

7.  Find a good work space. Most people find it hard to work from home, particularly if they have a spouse or family that inhabit the space during work hours. In order to be productive, you may want to find an inexpensive warehouse or office space arrangement. If you must work from home, set clear, distinct work hours that your family can’t disturb. Treat your work, if at home, as you would if you were going out to an office to work!