How to Set Up a Home Business
How to Start in an Online Business
Phase 2 – Step 1
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You have accomplished a lot so far, by completing the setup of your website. Now, it time to learn How to Set Up a Home Business. You can see everything that I am going to cover in this Phase of the Training by visiting my Post: How to Start in an Online Business – Table of Contents.
Also, you should be aware that my Phase 2 Training is not covered at Wealthy Affiliate. It is all my own training, based on years of business experience, owning several of my own, and starting some from scratch. I also learned to do my own business income taxes.
Before you start making money with your website, you need to have a system in place to keep track of the money; both incoming and outgoing. Good ol’ Uncle Sam is going to want his slice of the pie, so you also need to prepare, so that he doesn’t get more than his fair share.
You will also need to set some goals to achieve, along with a plan of attack, in order to achieve those goals. That means creating a Business Plan. Without these things in place from the beginning, you will be just flailing your arms in a wind storm, hoping to get airborne. Even if you are lucky enough to get off the ground, you will likely crash and burn in a short amount of time. So, let’s avoid that scenario, and prepare and set up everything from the get go, so that your flight to Success will be smooth.
Let’s go thru your pre-flight checklist.
Although your business is online, you will need to Set Up Your Business off-line as well. This will include things like:
- Deciding if your business will be a Sole-Proprietorship, Partnership, C-Corp, S-Corp, or LLC.
- Deciding on your Business Name (if different from your website name).
- Applying for your Business Name if needed.
- If you will not be a Sole-Proprietorship, you will need to complete any Agreements and/or Articles of Incorporation (if applicable).
- Acquiring any Business Licenses needed.
- Setting up a Home Office.
- Creating your Business Books for the Bookkeeping process.
- Creating a Business Plan so that you have set goals and are familiar with all the areas in setting up and running your business.
Before we go any further, please allow me to insert this disclaimer here:
“I am neither a lawyer nor a certified public accountant. Therefore, the information or suggestions that I present to you are done with the ‘best of my knowledge’. Do not assume that the information that I have presented is absolute fact and applies in your case, although, I have done my own extensive research and will always attempt to be as accurate as possible.”
So, if I am not a Lawyer nor a Certified Public Account, what make’s me qualified to offer you any information or suggestions on How to Set Up Your Business? Simply this:
- First, I have completed some courses in Accounting.
- Second, I have Owned and Operated Several Businesses collectively for over 30 years, many of which I have set up from ground up, along with creating all my own Bookkeeping setup.
- Third, I have become very familiar with the requirements that apply to setting up and running a business on the Federal level, as well as in the State of Illinois.
- And lastly, I have done my own Income Taxes for most of the years for my businesses (by hand, not Turbo Tax) and have never been audited by the IRS.
Given those qualifications, you can see that I am very familiar with the areas that I will address.
That being said, although the Federal Requirements and Regulations regarding businesses are uniform throughout the United States of America, each State, and most times, each County, as well as each City and/or Town will have their own additional requirements. It would be virtually impossible for me to be able to address them all.
If you are unsure of exactly what is needed or how to proceed within a given area so that you are in compliance with the laws and rules in your particular Town, City, County, or State, please either do your own due-diligence research or contact a professional in the field in question. Some of the places that you can check in order to find the information that you might need are:
So, let’s get started…..
Setup Your Business: Phase 2 – Step 1
Deciding on Your Business Structure
The first thing that you need to do when you Set Up Your Business is to decide on your Business Structure. Will it be a:
There is no real right or wrong here. It is all personal preference, although some are definitely more appropriate for most Online Affiliate Marketing Businesses. Whichever you are leaning toward, I suggest that you do some additional research before deciding, in order to make sure that you fully understand what it involves. You can make your best decision from there.
If you need additional information for making your choice for your Business Structure, please see my post: Different Types – Business Structures
Once you have made that decision, and applied for your Business Name (if applicable), then, complete any agreements and Articles of Incorporation (if applicable). Finally, you need to contact all of the aforementioned authorities and apply for any needed Business Licenses.
It can be quite the process, but once it’s done, you can breathe easy that you are all legal and ready to conduct business.
Please leave a Comment or ask a Question in the Comments section below.
When you are ready, see my next Post: Setting up an Office for a Home Business – Phase 2 – Step 2.