A Quick Guide to Starting a New Business for Recent Graduates

Starting A New Business

New graduates come out of school with more than just an education. They also have plenty of energy and ambition, and many of them have an entrepreneurial spirit. If you are planning on starting your own business, you need to know about a lot more than the service or product you’ll be providing. You also need to learn about your tax and legal obligations under local, state and federal laws. You need to find out what types of permits and licenses you’ll need, and importantly whether you should incorporate, form as an LLC, or whether you’re better off simply operating as an unincorporated sole proprietor.  

No matter what decisions you make there are certain steps that all new business owners need to follow. Here are some of the most important business formation requirements.

  • Write a Business Plan – If you took business classes in school then you probably are familiar with business plans, but if not, you may think they’re only necessary when you’re applying for a loan. But a business plan is an essential document that you can refer back to if you ever feel that your business is losing its way or going in an unintended direction. It can help you devise a marketing plan, a pricing plan, an operational plan and more that will serve as a daily reminder and guide to make sure you are staying true to your original vision.
  • Decide on a Business Structure – Roughly 70 percent of all businesses in the United States operate as unincorporated sole proprietorships, but that doesn’t mean that it’s the right choice for you. Take the time to learn about the tax and liability advantages of incorporating your business, about S-Corps and C-Corps as well as partnerships and Limited Liability Corporations. Different businesses require different structures, and the more complex arrangements may require the assistance of a business formation attorney.
  • Register Your Business Name – If you are going to operate using a name other than your own, then you need to officially register your business name.
  • Obtain a Tax ID and Register With the Tax Authorities – If you will be hiring employees or running your business as a partnership or corporation, you will need to obtain an Employer Identification Number from the IRS and register with tax authorities so that you are able to pay employment taxes, sales taxes and state income taxes.
  • Check to see if any Permits or Licenses are Required – Many businesses require specific permits or licenses in order to operate. You can find out about the laws in your locale from a business formation attorney, your local chamber of commerce, and from your town’s or state’s website.

For help with the formation of a new business, contact the attorneys at Baer Romain today for a consultation. We’ll be happy to assist you in your new venture.