We are often asked what steps are required in order to establish a new self-employed (sole proprietorship) business. Although this checklist is not all-inclusive, here is a document DiSabatino CPA often provides to clients which may be a helpful guide for you.  Please call our office to consult with us on deciding which entity might be correct for you, and the actual steps you will need to perform.

CHECKLIST FOR STARTING A SOLE PROPRIETORSHIP

Business Name

__Check on availability of name with the County.

__File an assumed name or fictitious name certificate, if required, with local or state fictitious name office.

__Publish a notice of assumed name or fictitious name in a local newspaper, if required.

__Consider registering your trademark or service mark at the federal or state level if you will do business regionally or nationally and will use your business name to identify a product or service

Licenses and Permits

__Get Federal license, if required.

__Get state license, if required.

__Get local license, if required.

Insurance

__Normally, get liability insurance (for injury to other people and damage to their property).

__Make sure there’s adequate coverage for your vehicles and those of your employees when used for business purposes.

__Normally, get property and theft insurance (covering damage to your business space and your tangible business assets).

__Get product liability insurance, if appropriate.

__Ask your insurance broker or agent about other recommended coverage

Taxes.

__Get IRS Publication 334, Tax Guide for Small Business.

__Get IRS Publication 583, Taxpayers Starting a Business.

__Check with state and local tax authorities regarding business taxes and any required registration.

__Consider getting QuickenBooks (Intuit) or similar small business accounting software.

__Consider hiring a part-time bookkeeper and consulting an accountant about setting up a simple accounting system.

Home-Based Business

__Make sure your homeowners insurance covers liability for business-related injuries to other people and damage to their property–especially if people will be coming to your house on business.

__Make sure your homeowners insurance covers damage to and theft of your business assets.

__Check to be sure your business usage complies with:

__local zoning ordinances

__your lease

__covenants, conditions and restrictions affecting your property.

__Get IRS Publication 587, Business Use of Your Home.

Hiring People

__Obtain an Employer Identification Number from the IRS.

__Get workers’ compensation insurance.

__Register with the state government for payment of unemployment compensation taxes.

__Get a supply of IRS Form W-4 (employee withholding).

__Get a supply of INS Form I-9 (employment eligibility verification).

__Know the guidelines for hiring independent contractors.