Start Your Business in 10 Steps
July 12, 2022
Starting a business in South Carolina is a step-by-step legal process. There are 10 of the most important steps that an owner takes.
1. Write a business plan
Writing a plan turns thoughts into reality. A business plan is required to work with lenders and investors.
2. Select a business structure
Selecting the right legal structure is one of the first steps of business formation. The type of structure determines the amount of liability and tax responsibilities for each owner.
3. Obtain funding
Traditional bank loans are not the only sources of financing for startup businesses. Additional options include investor funding and merchant cash advances.
4. Register trademarks
Trademarks are the names and logos that make one business unique from another. This process involves a registration to ensure that intellectual property is protected.
5. Determine the location
The location is important to many business owners but not all. The location determines the amount of taxes to pay and the types of legal requirements to adhere to.
6. Obtain tax IDs
Tax IDs identify your business to the IRS. The employer identification numbers (EINs) are used to file taxes and open bank accounts.
7. Open business bank account
A business bank account separates the owner’s personal spending from his or her business spending.
8. Hire a management team
The managers directly affect the success or failure of a business. The management teams include every leader of every department from accounting to human resources.
9. Obtain management software
Business management software automates the work of running a business. There is a program made for every type of department, such as tax and accounting software.
10. Review the taxes
The state and federal tax obligations for running a business vary in each state.
There are certain steps that every startup business goes through. The work varies from registering the business’s name to selecting the legal structure. Overall, every new owner has to understand the tax obligations and legal risks that are involved.