“Yup, it’s true-I’m starting a new business in this economy!”
1. Create Your Business Name
You know the saying, “The name says it all.”
When choosing your business name should always be creative. You must differentiate yourself (or at least try) from every other business.
Do any other businesses already have that name?
Is your chosen name a good fit with whatever your business will be doing?
Make sure the name you choose is available through the state.
Do a Quick Check of the Availability of Your Name (here)
Test your new name on an online search. See if anyone else out there has the exact same.
Check the availability of your potential trademark check with the United States Patent and Trademark Office, file at your earliest convenience.
Start your logo by purchasing a graphics program and then “building” colors, lines and segments the way you see fit. Otherwise, it may be best to outsource the creation of your logo. Many firms/ graphic artists are able to provide this service at a somewhat nominal cost.
Example: Logo My Way
. What is the specific service you will be providing?
. What is your expertise with this particular service/ how will you fit into your own business?
. How extensive is your research?
. Where will you find customers?
. Who will help you with the business?
. How will you stay in business for the next 2, 5, 10 years?
6. Incorporation, LLC, etc.
All Georgia corporations, limited liability companies, and limited partnerships are formed by filing with the state’s Corporations Division. The Division serves as custodian of the filings and provides copies and/or certifications of the documents.
. If you are ready to incorporate, it may be time to hire an attorney and/or use an online service.
. Read the Filing Procedures from the Secretary of State and download the Articles of Organization as requested from the site (follow the sample). Mail or transmit with appropriate registration and filing fees.
. Make one last check with the State Commission office to see if your name is still available.
. Within a few weeks, you will receive your Certificate of Organization
7. You will need an Employer Identification Number (EIN)An EIN number is also known as a Federal Tax ID number. It is used for purposes of filing tax and other reporting purposes. Every business needs an EIN number.www.irs.gov
8. Calculate Your Labor Cost1. Calculate and total all wages within the company
2. Analyze any other monies used for your employees: matching portions of retirement plans, etc.
3. What are the health insurance costs per employee, including long and short-term disability
4. What is the total amount you pay per employee in workers compensation premiums?
5. What is the company’s contribution to employee taxes: federal, state, FICA?
6. What are the costs associated with hiring an employee: advertising, employment services, etc.= LABOR RATE (per employee)
Verify your business meets zoning requirements.
Professional Licensing Boards DivisionReady to remodel or expand your building? Before making any changes you will need a Building Permit, and we already have a page for that (future link). Obtain a Fire Plan Review
All businesses making application for a business license will also need to obtain a Certificate of Occupancy from the Elbert County Fire Department (Office of the Fire Marshall).
Anyone who performs any business, occupation or profession is subject to an occupation tax or regulatory fee.
10. Check your Budget- OFTENYour first operating budget is of course based on your current expenses. Update often in order to be most accurate.
Pay attention to your operating expenses as a percentage of your gross revenue. The lower the number…….the leaner your company is performing. This is good.
Target your percentage to be below 30%. How to Build and Use a Business Budget
11. Start your business/ bank account Don’t use a personal account for business activities. A separate accounting system is much better and easier when reporting to the government or giving records to your accountant. Have ready when you open an account:
- Articles of Incorporation
- New EIN Number
- Personal Identification
Location* location*location can make all difference in a successful business. One tool this site provides is a list of locally active commercial sites. This is not a comprehensive list but will include many locations you and your real estate Broker may be touring. A link is provided (here), soon. Need a real estate Broker? Sometimes the best source would be other entrepreneurs, like yourself. Many real estate websites such as realtor.com and loopnet.com may also be able to help. Have you looked at everything and still can’t find that perfect site? Please call or have your Broker call our Economic Development Department. Sometimes we know of properties not yet on the market.
Errors and Omissions
Property Insurance: Protects your building, supplies, and inventory
Crime Insurance: Embezzlement, theft, robberies, etc.
General Business Liability: In case your employees cause harm to a customer.
Corporation tax rates are different and sometimes difficult. It is therefore recommended to immediately set up full payroll procedures. It is also recommended to hire an outside payroll company- a payroll servicer proficient with all mandatory federal and state withholdings and reporting.Always consult a professional on these matters.
17. Let’s get invoicing procedures down so you can have money coming in.Try this site.
18. Now comes health insurance & health insurance mandates
Although the future of company responsibility vs. health insurance is still not clear, a health insurance package for your employees, today, will be approximately $500-$1,800 per employee, per month, depending on premium expenses.
Comprehensive dental?: $50-$90 per employee, per month. Always consult a professional on these matters
Advisement: For every employee hired, your HR requirements increase exponentially.
After a candidate accepts an offer of employment, you will need to send them an offer letter. The Offer Letter is a legally enforceable contract.After acceptance of your offer of employment, and prior to starting work, there are several things you will need for each employee:
1. Employee Handbook- Book that explains company policies and procedures. Make sure one of the pages is a “Receipt of Handbook” the employee will sign.
2. Form I9 This is verification of legality(A drivers license is not enough).
3. Direct Deposit Form and state income tax withholding exemption certificate- This goes to your payroll provider.
4. Form W4 (Federal Payroll Withholding) This goes to your payroll provider.