There was once a time when a busy mom couldn’t dream of raising her children and having a career. Now, though, you can do both (and do both well)!
Has your home-based side hustle been gaining popularity online? Are you considering turning it into a legitimate business?
If you’re interested in becoming a full-fledged entrepreneur and running your business from home, these tips can help.
Read on to learn everything you need to know about setting up your own business.
Set Up a Formal Business Structure
If you want to be a successful mom entrepreneur, it’s important to start by setting up a formal business structure.
The simplest business structure is known as a sole proprietorship.
This works for many entrepreneurs. But, it’s not ideal for a long-term business model since it puts your personal assets at risk.
In the event that you are sued, things like your savings account and personal property could be seized.
If you want to avoid this, consider forming a Limited Liability Company (LLC) or corporation.
This separates your personal assets from your business and protects those assets in the event that you face legal trouble.
Register Your Business with the State
If you decide to form an LLC or a corporation, your business will automatically be registered with the state. If you don’t take this approach, though, you’ll need to register your business’s name on your own.
Before you register your business, make sure you choose an appropriate business name.
You should choose a name that is legally available and isn’t too similar to other businesses in your area. If it’s too similar, there’s a chance that credit profiles and other information could get mixed up.
Do some research before making your final decision. Consider a trademark search as well. This will help you avoid legal challenges from businesses with similar names later on.
Obtain a Tax ID Number
As a business owner, you are required to pay income taxes.
You can technically use your social security number as your Tax ID. But, if your business is an LLC or corporation, the IRS will require you to obtain a separate Tax ID known as an Employer Identification Number.
It’s free to get this number from the IRS. You simply have to go online and request one.
Get Any Required Permits
Depending on your location and the type of business you’re running, you may need to obtain certain permits. Some common permits many business owners are required to obtain include:
- A general business license
- A sales tax license
- Health department permits
You may also need to obtain additional professional licenses depending on the products or services you’re offering.
For example, if your business involves offering nutrition advice, you may need to obtain a nutrition credential before you can legally begin running your business.
Information on the Small Business Administration website can help you determine which kinds of permits you need for your specific business and location.
Create a Business Website
If you don’t already have a business website, now is the time to start creating one. A website gives you a central hub for all of the information related to your business.
There are lots of services out there that help you set up a business website easily and without spending a ton of money.
Register Your Business Online
When you register your business online with search engines like Google, it will come up in online search results. This helps people find your business more easily.
Remember to register social media accounts for your business, too. You can also register it with review sites like Yelp.
All of these steps help to boost your search engine ranking, establishes credibility, and makes it easier for people to find you online.
Open a Business Bank Account
Speaking of taxes, it can be very frustrating trying to separate your business and personal expenses when it comes time to file.
To avoid this headache, it’s important to create a business bank account. That way, it’s easy to keep track of your expenses and avoid any legal issues associated with using personal funds for business matters.
Keep in mind that, in order to open a business bank account, you will likely need a business Tax ID (EIN).
Establish Business Credit
In addition to opening a business bank account, you’ll also need to start building up credit for your business. Having a solid business credit history can help you get small business loans later on.
In order to start building your business credit, one of the best things you can do is to open accounts with companies that report payments to business credit bureaus like Experian or Dun & Bradstreet.
When you purchase items from these companies and pay off your debts within thirty days, you’ll start building a good business credit score.
Start doing this as soon as possible. The age of your account is one factor that credit bureaus take into account. So, the sooner you start building credit, the better.
Track Your Expenses Accurately
After you’ve set up your business bank account, in addition to building credit, you also need to make sure you’re tracking your expenses and income accurately.
Totally lost when it comes to business accounting? You may want to consider taking a class to learn more about basic bookkeeping and money management.
If you don’t have time for this, hire someone to handle your money for you.
It may seem like an unnecessary expense at first. But, it’ll save you a lot of time and money later on, especially when it’s time to file your taxes.
Look for More Tips for Running a Legitimate Business
Are you ready to start running a legitimate business? If so, start implementing these tips today. You’ll have your business up and running in no time!
Want to learn more about being a successful entrepreneur?
Check out the work from home section of our site today.
It’s full of all kinds of helpful tips and tricks that you can use to build your business and start increasing your income.