20 Steps on Your Way to Opening DayNew businesses face many challenges, from planning and licensing to opening a bank account and creating a Web site. Regardless of where you are in the process, The Company Corporation wants to help. Follow each step on our checklist to stay on the right track.

1. Write a business plan. Form goals and objectives for your new company. A successful start to any business requires a detailed outline of what you plan to accomplish. For access to more than 500 sample business plans, The Company Corporation recommends Business Plan Pro.

2. Obtain start-up capital. Whether you use your own savings or obtain loans, starting a business requires money. The loan process can take months to complete, so start early. Lenders often request a completed business plan prior to approval of funding.

3. Set up a legal business structure. Forming a corporation or LLC can protect owners' personal assets from business debts. Additionally, incorporating can provide credibility and tax benefits.

4. Register "Doing Business As" names. Will your corporation or LLC do business under a name other than its legal name filed with the Secretary of State? If so, it must file a DBA (Doing Business As) name.

5. Appoint a Registered Agent. Businesses must maintain an address for service of process where legal documents can be received.

6. Protect your company's name. Businesses file names on a per-state basis, so other companies may be using the same or a similar name in other states. Conducting a trademark search ensures your unique company name isn't already in use.

7. Obtain a Federal Employer Identification Number (EIN). Incorporated businesses and companies that hire employees must obtain an EIN. You can order an EIN separately.

8. Satisfy business licensing requirements. Most state, county, and local governments require businesses to obtain licensing before they begin to operate. We can provide you with the application forms and contact information for the appropriate agencies.

9. Draft internal documents for the business. Corporations are governed by their internal bylaws, whereas LLCs are governed by an operating agreement.

10. Satisfy insurance requirements. Incorporating or forming an LLC does not provide a company with business insurance. Most companies obtain general business insurance from an insurance provider. Corporations and LLCs that hire employees also typically obtain unemployment and workers compensation insurance.

11. Establish a business presence. Identify a location for the business and establish a business address.

12. Establish a Web presence. Not having an effective Web site eliminates opportunities for new customers and more profit.

13. Develop business collateral. Businesses use customized letterhead, cards, and forms with their company name and logo to establish credibility. LogoYes makes "do-it-yourself" business cards, logos, and letterhead a snap. Get the professional look you desire from LogoYes.

14. Open a bank account. To protect their corporate or LLC veil, businesses must maintain separate business and personal accounts and records. Establish a separate business bank account so that your personal assets are not co-mingled with business funds.

15. Establish proper accounting procedures. The Company Corporation recommends Peachtree Complete Accounting by Sage, the accounting solution that small business owners have trusted for more than 30 years. It provides the tools that help you track project costs, manage inventory, and analyze all aspects of your business. Also consider Timeslips by Sage, the industry-leading time and billing solution that enables service-based businesses to easily and efficiently manage every aspect of the time and billing process. (Enter promo code TCC2008TS for savings on Timeslips by Sage.)

16. Build stronger customer relationships. Make sure you have critical contact details at your fingertips so you can focus on what's most important to your business - building stronger customer relationships. ACT! by Sage helps you organize contact information, manage daily responsibilities, and communicate more effectively to improve your productivity.

17. Identify where to get help. Smart business owners know where and when to seek advice from other sources. Identify attorneys and accountants in your area who can assist you with specific questions about your business if necessary. Network with other small business owners on a site like RunMyOwnBiz.com.

18. Get started. Schedule an opening day for your business. Giving yourself a goal helps keep things on track and can increase your productivity.

19. Complete additional filings as needed. Companies that expand to do business outside their original state of incorporation or LLC formation generally register in the additional states. Amendments can also be filed if the information listed on the formation document, like the legal name of the company or address, changes. Contact us at 800-818-6082 (toll-free) or 302-636-5440 for assistance with additional state filings.

20. Follow government rules. Operating a small business means satisfying ongoing government and legal requirements to maintain the company's good standing.

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Everything you need to do to start a business.Thinking about starting a business? You’re not alone. Every year, thousands of Americans catch the entrepreneurial spirit, launching small businesses to sell their products or services. Some businesses thrive; many fail. The more you know about starting a business, the more power you have to form an organization that develops into a lasting source of income and satisfaction. For help with the beginning stages of operating a business, the following checklist is a great place to start.

Evaluate and Develop Your Business Idea

1. Determine if the type of business suits you.

2. Use a break-even analysis to determine if your idea can make money.

3. Write a business plan, including a profit/loss forecast and a cash flow analysis.

4. Find sources of start-up financing.

5. Set up a basic marketing plan.

Decide on a Legal Structure for Your Business

6. Identify the number of owners of your business.

7. Decide how much protection from personal liability you'll need, which depends on your business's risks.

8. Decide how you'd like the business to be taxed.

9. Consider whether your business would benefit from being able to sell stock.

10. Research the various types of ownership structures:

Sole proprietorship Partnership LLC C Corporation S Corporation

11. Get more in-depth information from a self-help resource or a lawyer, if necessary, before you settle on a structure.

Choose a Name for Your Business

12. Think of several business names that might suit your company and its products or services.

13. If you will do business online, check if your proposed business names are available as domain names.

14. Check with your county clerk's office to see whether your proposed names are on the list of fictitious or assumed business names in your county.

15. For corporations and LLCs: check the availability of your proposed names with the Secretary of State or other corporate filing office.

16. Do a federal or state trademark search of the proposed names still on your list. If a proposed name is being used as a trademark, eliminate it if your use of the name would confuse customers or if the name is already famous.

17. Choose between the proposed names that are still on your list.

Register Your Business Name

18. Register your business name with your county clerk as a fictitious or assumed business name, if necessary.

19. Register your business name as a federal or state trademark if you'll do business regionally or nationally and will use your business name to identify a product or service.

20. Register your business name as a domain name if you'll use the name as a Web address too.

Prepare Organizational Paperwork

21. Partnership:

Partnership agreement Buyout agreement (also known as a buy-sell agreement)

22. LLC:

Articles of organization Operating agreement Buyout agreement (also known as a buy-sell agreement)

23. C-Corporations:

Pre-incorporation agreement Articles of incorporation Corporate bylaws Buyout agreement (also known as a buy-sell agreement or stock agreement)

24. S-Corporations:

Articles of incorporation Corporate bylaws Buyout agreement (also known as a buy-sell agreement or stock agreement)

File IRS Form 2553, Election by a Small Business Corporation

Find a Business Location

25. Identify the features and fixtures your business will need.

26. Determine how much rent you can afford.

27. Decide what neighborhood would be best for your business and find out what the average rents are in those neighborhoods.

28. Make sure any space you're considering is or can be properly zoned for your business. (If working from home, make sure your business activities won't violate any zoning restrictions on home offices.)

29. Before signing a commercial lease, examine it carefully and negotiate the best deal.

File for Licenses and Permits

30. Obtain a federal employment identification number by filing IRS Form SS-4 (unless you are a sole proprietorship or single-member limited liability company without employees).

31. Obtain a seller's permit from your state if you will sell retail goods.

32. Obtain state licenses, such as specialized vocation-related licenses or environmental permits, if necessary.

33. Obtain a local tax registration certificate, a.k.a. business license.

34. Obtain local permits, if required, such as a conditional use permit or zoning variance.

Obtain Insurance

35. Determine what business property requires coverage.

36. Contact an insurance agent or broker to answer questions and give you policy quotes.

37. Obtain liability insurance on vehicles used in your business, including personal cars of employees used for business.

38. Obtain liability insurance for your premises if customers or clients will be visiting.

39. Obtain product liability insurance if you will manufacture hazardous products.

40. If you will be working from your home, make sure your homeowner's insurance covers damage to or theft of your business assets as well as liability for business-related injuries.

41. Consider health & disability insurance for yourself and your employees.

Set Up Your Books

42. Decide whether to use the cash or accrual system of accounting.

43. Choose a fiscal year if your natural business cycle does not follow the calendar year (if your business qualifies).

44. Set up a recordkeeping system for all payments to and from your business.

45. Consider hiring a bookkeeper or accountant to help you get set up.

46. Purchase Quicken Home and Business (Intuit), QuickBooks (Intuit) or similar small business accounting software.

Set Up Tax Reporting

47. Familiarize yourself with the general tax scheme for your business structure. (See Tax Savvy for Small Business, by attorney Frederick Daily.)

48. Familiarize yourself with common business deductions and depreciation. (See Deduct It! Lower Your Small Business Taxes, by attorney Stephen Fishman.)

49. Obtain IRS Publications 334, Tax Guide for Small Business, and 583, Taxpayers Starting a Business.

50. Obtain the IRS's Tax Calendar for Small Businesses.

As you can see, starting a business involves making quite a few initial decisions and getting policies and paperwork in place. For more information about and help with starting a business, consult the following Nolo resources: Legal Guide for Starting and Running a Small Business, by attorney Fred Steingold; Whoops! I’m in Business, by attorneys Richard Stim and Lisa Guerin; or Quicken Legal Business Pro (software).