BUSINESS START-UP

BUSINESS START-UP

Introduction

Key Tasks and Procedures of a Business Start-Up

• Registering the Business and Business Name

• Tax (Income Tax, Value Added Tax, Company Vehicles etc)

• Assessing the Risks for Your Business (insurance etc)

• E-business and the Internet

• Protection and Commercialization of Intellectual Property Rights

• Employing Labor

• The Supply of Goods and Services

• International trade and global opportunities

• Sources of finance (bank credit, equity finance and informal source of finance etc). (Allen 1999, 121)

Registering the Business and Business Name

To get a better understanding for which business organizational structure is appropriate, the entrepreneur may consult a legal or tax advisor. Deciding the best fitting business organizational structure can offer a better approach to business management. Sole Proprietorship, General Partnership, Limited Liability Company (LLC) and Corporation (INC) are the possible business structures. (Beaver 2002, 65)

Whether an entrepreneur form a sole proprietorship, partnership, LLC or corporation, he/she may want to register a “doing business as” (DBA) name, which is required if the business works under a name other than its legal name. (Hashemi& Hashemi 2002, 76)

Many business owners opt for a name other than their given personal name in order to set up name recognition and to identify their goods sold or services. With sole proprietorships or partnerships, a DBA statement makes clear to the public of the owner's personal name or the name under which they are conducting business. In the case of corporations or LLCs, the statement can be used to inform the public of the previous legal company name that existed. (Bolton & Thompson 2004, 34)

Tax (Income Tax, Value Added Tax, Company Vehicles etc)

Once an entrepreneur have registered and licensed the business, they are required to know the business taxes they will be accountable for at the state and federal levels. Each business structure entails a different outline of taxation. This may vary in what taxes a business pays and how the entrepreneur is expected to pay them. Smart business owners estimate their taxes to deposit money aside to abstain from the surprise of a large tax bill at the year's end. (Bragg & Bragg 2005, 154)

For employers with employees, Bank of America offers an online payroll service which includes payroll processing, tax payments, and reporting capabilities. (Burns 2007, 87)

Assessing the Risks for Your Business (insurance etc)

Being a small business holder, choosing the correct coverage suiting the stage of the business is very important. To completely shield one's business assets from risks, business insurance is extremely necessary. This can limit the entrepreneur's liability in case of an uncertain misfortune or natural. New businesses may have different needs than established businesses and one may want coverage that grows as the business grows. A range of types of business insurance are essential by law while other types are desirable for a particular business class. (Burton & Bragg 2006, 98)

Below are some general types of business insurance policies particularly for small businesses.

•Business Owners - Comprehensive insurance policy that offers a wide collection of coverage customized ...