How To Start Your Home Business

This is the hard part. Getting started. You may have always wanted your own business, and now you have an idea and just don't know what to do next.

The first step in starting your new business will be to decide what form it will take. This could be a sole proprietorship, a partnership, or a corporation. The kind of business you form will be decided both by legal and tax concerns.

Step two would be to select a name for your business. The name you select for your business can be one of the most important decisions you make. You can select a separate name for each business you enter or you can pick a generic name, such as, "Johnson's Enterprises" which will allow you to do almost anything you choose. If you build a large business with a strong name recognition for your company, it may be more difficult to sell if the company name includes your name. Maybe a more generic name, such as "ABC Associates" would work even better.

Step three is filing your business with the proper agency. Two things need to be done. First, you need to get your business license and then file for a fictitious name statement. You can do this at the City Clerks office.

Step four is opening a bank account for your new business. It is optional if you are operating as a sole proprietorship, but you should consider it for keeping proper records for your business. A bank account in the name of your business helps separate all business income and expenses from any other income and bills you may have. It is an important step if you are going to take full advantage of the tax deductions available to home businesses. In addition, a business account adds credibility to your business and is the beginning of a relationship with your banker that can benefit you in the future.

Step five is choosing professional business cards. An important part of your new business will be the image you portray to customers, suppliers, vendors, and others that you meet. You do not need a fancy logo design by a high priced graphic artist to establish this image, but you do need a professional card.

Step six is finding a place in your home for an office. This should be a separate room used only for your home business. This not only gives you a better place to work without interruption, it has tax benefits as well. If you do not have a spare room to use, find a place where you can put a desk or a table. Be sure you can have a phone nearby and something to keep files in. This is all you really need to get started.