How to Tackle the Tedious Bits of Starting a Business

Launching a business seems like such an exciting proposition when you’re just starting out. Then you find out that you have to do so many boring things — like paperwork, administration, and legal — just to get off the ground. It can be more than a little frustrating when all you want to do is get to the good, fun parts of running a business. 

Unfortunately, you can’t skirt your way around these tasks. Fortunately, thanks to technology and the internet, it’s not as hard as it used to be. You could have everything done in just a few days if you set your mind to it.  

To make your journey smoother and less painful, here are a few tips on how to tackle the boring parts of launching a new business:

Setting up a legal structure 

It’s a good idea to choose a legal structure before you do everything else. Your legal structure determines your legal liability, tax obligations, and management style. An LLC is a popular choice — it’s convenient and comes with benefits like limited liability, extra flexibility, reduced paperwork, and tax perks. Every state has its own LLC formation rules, so do your homework. You can also use a formation service in your state to get set up (or use a lawyer or file the paperwork yourself). 

Registering 

Selecting a business name is important for both branding and legal reasons. Later, you may need to register your business name with the local and state governments (it depends on your business type). Furthermore, you may need to acquire a license and permits to operate legally. Last, but not least, you will need to acquire an EIN for tax purposes. Bplans offers a full list of registering-related obligations you can consult.

Harness Freelancer Power with W-9 Essentials

In the early stages of business, savvy entrepreneurs often turn to freelancers for cost-effective assistance with tasks like website development, social media marketing, and graphic design. To ensure compliance with IRS regulations, it's crucial to collect a W-9 form from each freelancer, which gathers critical information including their name, address, and taxpayer identification number. This information is vital for accurately reporting payments and issuing 1099 forms at the year's end, summarizing their earnings. Some newcomers may still be asking themselves, “What do I need to know about filing a W-9?” Using online resources offer helpful guidance and a more comprehensive understanding of W-9 forms, ensuring both you and your freelancers navigate tax responsibilities smoothly.

Getting your books in order 

You will need to set up an accounting process for your business. This is important for tax compliance, payroll, administration, and general sustainability reasons. Having clear records to consult when you need them can help with informed decision-making. You can use free accounting software to get started. Outsourcing accounting work is also an option. 

Acquiring funding 

Unless you’re self-funding, you will need to acquire external funding. Your main options are investment capital, loans, and, possibly, grants. To be deemed credit-worthy, you’ll need to pass a due diligence review. Some things you’ll need to prepare are a well-thought-out business plan, corporate governance documents, and financial statements. The SBA offers a funding guide you can consult. 

Finding an office or retail space 

If you need to lease office or retail space, the earlier you get started, the better. It takes an average of two to eight months to get a space ready and, then, get settled in. You may need to work with a tenant broker, an attorney, and an architect to have an ideal space prepared. It’s important you get the details right the first time — changing office or retail spaces is a major hassle.

Developing a marketing plan 

Marketing is a critical business function. You need to raise awareness of your company to attract clients or customers. Writing a marketing plan can help you set up a solid marketing process that can help you achieve your marketing (and business) goals. Be sure to conduct thorough market research to help you create a solid plan.

Conclusion 

Many of the processes you need to follow to set up a business have been automated these days. That means you, usually, do most things online, use an app, or similar — which makes it faster and less boring. Also, you can always work with professionals — like business consultants, coaches, attorneys, and formation services — to get off the ground faster and avoid compliance issues.

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