5 Tips for New Businesses

by Brad Fein

Launching your own business can be a daunting task. You may feel like a tiny fish in a huge pond, but if you have a business idea that you believe in, there’s no reason for you not to thrive. Here are five helpful hints to follow if you decide to take the plunge into the business world.

1.Apply for an EIN

The crucial thing to do when setting up a business is to apply for an Employee Identification Number (EIN). This is issued by the U.S. Internal Revenue Service (IRS) in order to identify a business. Without it, you cannot open a business bank account, apply for permits, or file taxes. The best way of applying for an EIN is to have a business lawyer do it on your behalf; it will guarantee completion of the process.

2.Create a mailing address

In order to open a business bank account, you will need a business mailing address. If you don’t already have a U.S. business address, there are several online companies who will provide you with a virtual one. When mail is received, they will email you, and you can then choose to forward the mail onto yourself (internationally, if required). You should also consider creating a business email account: choose a clean and professional-sounding email address.

3.Set up a bank account

As previously mentioned, you will need to create a business bank account once you’ve received your EIN. If you are a U.S. citizen, this is straightforward: visit the bank you would like to set up the account with, and away you go. However, if you are not a U.S. citizen, it’s a little less simple (but not impossible). Bank accounts cannot be set up on your behalf, so you will either need to set up one with your existing bank in your own country, or take a trip to the U.S. to create one with a new bank. In any case, it is a good idea to have your business bank close to you.

4.Organise insurance

Organising business insurance is not always required, but it is strongly recommended. Depending on your business model, you may have limited protection over your personal property from lawsuits etc. and little else. Insurance will protect both your personal and business assets from unexpected catastrophe, which is arguably crucial when your company is still in its embryonic stages.

5.File taxes

Taxes are no one’s idea of fun, but they are a legal requirement and it is important to keep on top of them. Consider registering with an accountant, as they will be able to advise you about reducing the taxes you end up paying, and increasing reductions. There are plenty of companies around who will assist you when it comes to filing your tax return.

Hopefully these tips have helped you in some way. Starting a new business is no small task, but there are plenty of people waiting to help you.

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