Most of us don't think about the legal paperwork involved when starting your own business yet it is such a fundamental part we cannot let it slip through the cracks.
From deciding whether you want your business to be a Corporation or an LLC to setting up a bank account to registering your business with the state. All of these key aspects must be taken into account. So below are a few things we took care of first.
1. Registering your business name with the State and Deciding on the Type of Business
This process varies from State to State but it is extremely important to Register your Business Name and decide whether you want to run your business as a Corporation, Limited Liability Company, Sole Proprietorship, Partnership, S Corporation, etc. When the time came to register our business, our accountant was our savior. He helped us decide which route to take at that time and pointed us in the right direction. Check out THIS LINK to read more about Registering your Business and the steps to take.
2. Open a Business Bank Account!!
Registering your business name and the type of business should be 1st because your bank will require your business tax ID. Once you've obtained the proper documentation from your business registration it is important to open a business bank account. This is a common mistake amongst many individuals starting their businesses. It is crucial that you keep your finances in order. Separating our personal finances from our business was key. Once your business is officially growing and functioning, you really want to be able to see how youre income and expenses are working for you. Plus it's as simple as walking into the bank of your desire and speaking with their rep however there are things to consider such as bank fees, requirements, amount of deposits, etc.
3. Agreements and Contracts
Whether you are starting a photography business or any other type of business you MUST get your contracts and agreements in order. In my opinion having insurance is important which we'll dive into next but your Contract is somewhat another form of insurance if you think about it. Make sure your contract is clear and concise and states exactly what you want it to represent.
Last but not least, Get Insured!! Liability Insurance coverage for your business and insurance for your equipment and business location is not only required in some places but I think of it as a peace of mind. God forbid anything happens, knowing that you will be covered is something we cannot go without. So make sure your insurance is set and it is protecting you!!