Wednesday April 23, 2014
Steps to starting a new business
posted by Jeffrey E. HIatt
Starting a new business is an exciting, but somewhat confusing and consuming process. The success of a new business starts with proper planning and counsel from your attorney and accountant. Selecting the proper entity and tax status is very important. Below is an outline of steps to consider when deciding to begin your business:
- Develop a detailed business plan. A successful business start-up begins with the development of a detailed business plan. The business plan captures your knowledge of industry and your plans for success. You must address these elements:
- Secure financing. If financing is required submit your business plans to lending agencies.
- Select a business name and choose the appropriate operating entity.
- Register with the County Clerk and the Secretary of State.
- Register any trademarks or service marks with the Secretary of State.
- Secure a zoning license/certificate of occupancy from the local zoning department.
- Secure permits for any remodeling or new construction.
- Secure sign permits for any exterior signage.
- Obtain the appropriate federal employer identification number (EIN) from the IRS based on the election of your tax status.
- Obtain city and county occupational/business licenses.
- Register with the Kentucky Revenue Cabinet as required for the following:
- Employer’s Withholding Tax
- Sales and Use Tax
- Consumer’s Use Tax
- Corporation Income Tax
- Limited Liability Entity Tax (LLE)
- Transient Room Tax
- Motor Vehicle Tire Tax
- Coal Severance and Processing Tax
- Check with the Business Information Clearinghouse (800-626-2250) and your local city and county clerks to determine if any special licenses are required for your business.
- Report new employees immediately to Kentucky New Hire Reporting (1-800-817-2262)
- Establish a business checking account. Consider a business savings account.
- Secure liability insurance, worker’s compensation insurance and other coverage appropriate for your business.
Steps to starting a business may seem overwhelming. Our office has the experience to set up businesses of all sizes. We deal with everything from individuals to advising foreign clients on options for structuring entities to operate in the United States along with risk mitigation strategies. Preparing contracts to purchase/lease land, preparation of employment agreements and assisting with possible tax incentives. Please contact Jeff Hiatt or more information.