Incorporating your business is an important step towards establishing a legally separate entity and protecting your personal assets. However, it’s not the end of the road to your business formation journey. There are still several steps that you need to take after incorporating your business to ensure that your business is fully set up and ready to operate. In this article, we’ll explore what to do once you incorporate your business.
Here is what to do once you start incorporating your business;
1. Obtain the necessary business licenses and permits
Once you started Incorporating your business, you may need to obtain additional licenses and permits depending on the nature of your business and where you operate. The requirements for business licenses and permits vary by state and industry, so it’s important to do your research and determine what permits and licenses you need to operate legally.
2. Get an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is a unique nine-digit number that the Internal Revenue Service (IRS) assigns to businesses for tax purposes. You’ll need an EIN to open a business bank account, file taxes, and hire employees.
You can apply for an EIN online through the IRS website. The process is free, and you’ll receive your EIN immediately after completing the application.
3. Open a Business Bank Account
Opening a separate business bank account is essential for keeping your personal finances separate from your business finances. It’s important to choose a bank that offers business banking services and provides features that meet your business needs.
To open a business bank account, you’ll typically need to provide your EIN, business formation documents, and personal identification. Some banks may require additional documentation or information, so it’s best to check with your chosen bank beforehand.
4. Register for State Taxes
Depending on the state where you operate, you may be required to register for state taxes such as sales tax, payroll tax, or franchise tax. It’s important to determine your state’s tax requirements and register accordingly to avoid penalties and fines.
5. Set up an Accounting System
Setting up an accounting system is crucial for tracking your business finances and ensuring that you stay compliant with tax regulations. There are several accounting software options available that can help you manage your finances, including QuickBooks, Xero, and FreshBooks.
It’s important to choose an accounting system that meets the needs of your business and is easy to use. You may also want to consider working with an accountant or bookkeeper to help you set up your accounting system and manage your finances.
6. Obtain Business Insurance
Business insurance can protect your business from unexpected events such as accidents, lawsuits, and property damage. Depending on the nature of your business, you may need to obtain general liability insurance, professional liability insurance, or other types of insurance.
It’s important while Incorporating your business to shop around and compare insurance policies from different providers to find the right coverage for your business. You may also want to consult with an insurance agent to help you understand your options and choose the best policy for your business.
7. Develop a Business Plan
A business plan is a roadmap that outlines your business goals, strategies, and plans for growth. Developing a business plan can help you stay focused on your goals and make informed decisions about the future of your business.
Your business plan should include information about your products or services, target market, competition, marketing strategies, financial projections, and other key details. It’s important to revisit and update your business plan regularly to reflect changes in your business and market conditions.
8. Hire Employees
If you plan to hire employees, there are several steps you’ll need to take to ensure that you comply with employment laws and regulations. These include obtaining workers’ compensation insurance, setting up payroll, and complying with employment tax requirements.
You’ll also need to create an employee handbook that outlines your company policies and procedures, as well as any benefits or perks that you offer. It’s important to hire the right employees who share your company’s values and can help you achieve your business goals.
When hiring employees while Incorporating your business, you’ll need to develop job descriptions, post job openings, review resumes, conduct interviews, and check references. You may also want to consider using an applicant tracking system (ATS) to streamline the hiring process and manage candidate information.
9. Build a Website and Establish a Presence Online
In today’s digital age, it’s essential for businesses to have a website and establish a presence online. Your website is a key tool for marketing your business, showcasing your products or services, and providing information to potential customers.
When building your website, it’s important to choose a domain name that’s easy to remember and reflects your business name or industry. You’ll also need to choose a web hosting provider and a website builder or content management system (CMS).
In addition to your website, you should establish a presence on social media platforms that are relevant to your business and target audience. This can help you reach a wider audience, engage with customers, and build brand awareness.
Know more: Your Step-By-Step Guide To Small Business Websites
10. Network and Build Relationships
Networking and building relationships with other business owners, industry professionals, and potential customers can help you grow your business and stay informed about industry trends and opportunities.
You can network through local business associations, industry conferences and events, and online forums and groups. Building relationships takes time and effort, but it can lead to valuable partnerships, referrals, and new business opportunities.
BOTTOM LINE
Incorporating your business is an important step towards establishing a legally separate entity and protecting your personal assets. However, there are several steps you need to take after incorporating your business to ensure that your business is fully set up and ready to operate.
By obtaining the necessary licenses and permits, getting an EIN, opening a business bank account, registering for state taxes, setting up an accounting system, obtaining business insurance, developing a business plan, hiring employees, building a website, and establishing a presence online, and networking and building relationships, you can set your business up for success and growth.
