8 Steps to Starting Your Own Small Business Today

8 Step Guide To Starting Your Own Small Business

1. Research Your Business Name Ideas

2. Decide Your Business Structure

3. Register Your Business Name With the Secretary of State

4. Obtain Any Licenses and/or Permits Required

5. Secure Your Business Domain Name and Social Accounts

6. Open A Business Bank Account

7. File A Trademark With Your Business Name (Optional)

8. Begin Your Branding Journey

Sage & Oak’s 8 Step Guide to Starting Your Own Small Business Today

So you’re considering starting your own small business but you’re not sure where to start…

We’ve been getting a lot of questions about how we started, what we did, and how we’re progressing. In this blog, we’re going to discuss the steps to take your small business idea to the next stage - making it official.

Research Your Business Name Ideas

Assuming you’ve got one picked out already, the first thing you’re going to want to do is research your business name ideas to make sure that name is not being used and that it’s not trademarked. You wouldn’t want to start this entire process without checking first because you may find the entity you’re trying to use is already taken and that brings you all the way back to the drawing board. Make sure both the domain name and the social media usernames you want to use are available and if they are, proceed to step two! If you find that what you’d like to use is unavailable, see if there is another option that would work for you.

Decide Your Business Structure

Business structure guidelines provided by the US Small Business Administration.

There are so many forms of businesses so it’s important to do thorough research when deciding which structure is best for you. This is where your in-depth research comes in because we can’t tell you what to pick. Your business structure will affect how much you will pay in taxes, the paperwork needed to be files, your personal liability, and more, so it’s very important to do thorough research before choosing your business structure. 

The most common forms of business are sole proprietorships, partnerships, corporations, and S-corporations. Don’t let these big words scare you. There are plenty of resources available to help guide you in your decision making process. To learn more, visit the SBA website here.

A sole proprietorship is the easiest business structure to form and still allows you to control your business. However, you can be held liable for any debts and issues that may arise. If you’re considered a low-risk business and you’re trying to test the waters before diving completely in, a sole proprietorship could be a good choice.

If you have 2+ people trying to form a business together, a partnership is the simplest structure to use. This could be a good choice for businesses with more than one owner and for groups who would like to test their ideas before they form a more formal business.

A limited liability company (LLC) is like a combination of corporation and partnership business structures. You are protected from personal liability in most instances. Your personal assets like your car and your home will not be at risk if you are facing bankruptcy or other troubles. If you are a medium or higher-risk business owner with assets you wouldn’t want to lose if problems arose, an LLC could be a good choice for you.

A corporation (C corp) is an entity that is completely separate from its owners. They have the most protection against personal liability but it’s also more expensive and require the most reporting and record-keeping. You’ll have to pay income tax on your profits but this is a good choice for medium to high risk businesses that need to raise money (possibly through the sale of stock).

An S corporation (S corp) is similar to a C corp but it’s designed to avoid possible double taxation you’d get with a C corp. S corps are good choices for businesses that would be a C corp but meet the criteria (domestic corporation, only allowable shareholders, no more than 100 shareholders, etc) to be an S corp.

Register Your Business Name With the Secretary of State

Now that you have your business name and structure figured out, it’s time to get legal. Next thing you’ll want to do is register your business name with your Secretary of State. You can usually do this online via a form, by scheduling an appointment to visit in-person, or by mail. The price and requirements will likely vary between states so make sure you’re doing your research.

Obtain Any Licenses and/or Permits Required

The licenses and permits required will vary between each business so make sure you do a lot of research to determine if there are any specific requirements for your business type.

If you will be selling products or services, a sales tax permit allows you to collect sales tax from each purchase which you are then required to report and pay what is required back to the government. Each city has its own separate sales tax rate so be sure you’re charging properly. Where we live, our rates are 5.75% for state (Ohio) and 1.5% for county (Clark) so together we charge 7.25% on all in-store and local purchases. If you’re going to be selling your products/services at events, you’ll likely need a vendor’s license. Each state has different requirements so we won’t go too in-depth on those. This is where more research will be required.

Photo by Tracy Le Blanc from pexels.com

Secure Your Business Domain Name and Social Accounts

Most businesses these days have a website to relay information and to help attract new customers. It’s an important but not necessary step. If you’re considering creating your own website, you’ll need to have a domain name. Your domain name will be the link to your website. For example our website URL is www.thesageandoak.com and thesageandoak.com is our domain name. You can check the availability here. Be sure to pick something that matches well with your business name and your social usernames if you’re going to have them. Our usernames are all @thesageandoak just like our domain name so people know exactly how to find us quickly.

If you plan on using social media, hop on your favorite platforms and do a quick username search until you find one that is available to use. You’ll need an email address, but we suggest snagging your usernames as soon as possible. You wouldn’t want someone else to claim these accounts because then who knows if you’d ever have access to them. It makes the most sense to keep all of your usernames the same to create less confusion for you or anyone trying to find your business online.

Once you have confirmed that the name you’re going to use is available on all channels, you’re going to want to secure your social media accounts. We recommend creating accounts for all the platforms even if you’re not sure you’re going to use them. This could save you quite a big headache in the future if you decide to use another platform and find out someone has taken your username on there already.

Not only should you secure your usernames on social media, but you should purchase your domain name as well. 

Open A Business Bank Account

For accounting purposes, it’s best to create a separate bank account for your business. This will ensure business money and personal money will stay separate and will make the tax filing process much easier in the end.

There are so many financial institutions that offer business banks accounts with different stipulations so it’s very important to do your research to find which option would be best for you. Make sure you are considering any fees associated with said account as well as the pros and cons of each institution.

Sage & Oak branding guidelines.

File A Trademark With Your Business Name (Optional)

Though this step is not required, it is recommended. By trademarking your business name, you are ensuring no other business entity will be allowed to use your business name. If they do, you could technically sue them for using your trademarked name.

To trademark your business name, please visit the United States Patent and Trademark Office website here.

The application process is completable in four steps, but the approval process may take a few months. The basic application fees can be quite minimal but there could be other costs depending on your situation. The filing fees are non-refundable so make sure you have completed the application thoroughly and honestly to ensure your application doesn’t get denied.

Begin Your Branding Journey

Now that all the hard stuff is out of the way, you’re ready for the fun, creative aspect of starting your own small business - branding! Branding is basically an umbrella term with as much that goes into it.

Let’s start with your brand identity. Your brand identity goes beyond your company’s logo, color palette, and marketing materials. It’s how your brand will look, feel, and speak to customers. It is incredibly important because it will ultimately affect how credible others will view your business. 

Your brand identity should include the following assets: your logo, your color palette, you typography, your iconography, your photos and graphics for marketing, a style guide that explains when and where to use certain logos and tones.

You’ll need to define the story of your brand. What do you believe in? What problems are you solving with your product/service? Why did you decide to create your product/service? What are your goals for your business?

People are more likely to support your brand if they feel connected to your story than anything else. Make your story relatable and empathetic. People support causes, not businesses.

Let us help you start your branding journey today. Reach out via email to see how we can help you grow. 

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This list may feel overwhelming especially to those who are unfamiliar with this process. However, there are tons and tons of resources out there that can help you get the answers you need. From the IRS website to your local Small Business Administration, you’re sure to find what you’re looking for. 

Please note: This was written from our own experiences and the process may be different for everyone. Different states require different things from businesses so it’s best to take this advice as a general starting point and do your own research. This ensures everything is done correctly so there won’t be issues down the road.

We’re always willing to answer any questions regarding our process. If you’d like to reach out, you can do so via e-mail or social media. We’ll get back with you as soon as we can!

We hope this blog provided some insight and helped you better understand the journey of starting your own small business.

Also as a special thank you for reading this blog, take 10% off your next order with promo code: “BLOG10”!