Starting a business is an exciting time. As a small business owner, you are part of the backbone of America, joining more than 28 million other entrepreneurs with similar motivations and aspirations.
If you are just about to launch your venture, getting started on the right foot is essential. You need to have the right frameworks in place for your new business to thrive and grow. If you’ve got a great idea but don’t know where to start, we’ve put together our top tips for starting a business in Sacramento.
Small business tips for big results
These tips assume that you’ve already done a proof of concept – that is, you’ve done some research into your niche, and you have a pretty good idea that it’s going to be financially viable and sustainable over the long-term.
1. Write your business plan
If you have not yet done so, you need to
write a business plan. It doesn’t matter how small or simple your idea is, a business plan will tell you whether it’s going to work or not. This should be a prerequisite to everything else you’ll have to do. Writing a business plan takes time and effort, but it will be well worth it and may save you time, money, and trouble down the line.
2. Decide what type of company you are going to register
Your
business structure will dictate the taxes you pay and your personal liability as it pertains to business operations. In California, there are four choices:
- A DBA, which is the equivalent of a sole proprietorship, is great if you are setting up a business that is based around you and what you do. For example, if you are a freelancer, a composer, or somebody whose skills are the core of the business, this is a good choice.
- A C-Corporation is a structure that shields you from personal liability. Under the umbrella of your C-Corporation, you can enter into contracts, purchase real property, and sue or be sued without being personally liable. You can also raise money from investors by selling stock in your company, and there are a ton of tax advantages – but also a few cons, so do your research before you dive in.
- An S-Corporation is taxed more like a sole proprietorship than a C-Corp, which is good, but it’s more expensive to set up than a DBA.
- An LLC, or limited liability corporation, lies somewhere between a corporation and a partnership. There are tax advantages, and you are protected like a corporation.
3. Obtain the necessary permits and licenses
There are several types of business permits. Depending on your company structure and where you are doing business, one may be more suitable than another. Every kind of business has various requirements you will need to meet and maintain, such as periodically filing a
statement of information and paying applicable taxes.
Launching your company is an exciting time, but it’s what you do at the outset that will set the tone for your future success.
If you are starting a new business and need office space,
Business Workspaces has a solution for you. We offer many flexible, affordable options that can help you hit the ground running.
Stop by today for a tour or reach out to learn more about what we can do to support you.
