How to Start an Independent Business

Start a new independent business to realize your professional goals.

Starting an independent business can be the beginning of realizing a professional dream and attaining financial security. As an independent business owner, you control the fate of your business and do not have to relinquish power to the public in the form of stock. Avoiding the public sector also affords you freedom from government control. You will need to construct a good business plan, secure start-up funds, determine a location and complete local registration forms to get your independent business up and running.

Instructions

1. Draft a business plan. Regardless of your location, you will need a thoughtful business plan to organize your new independent company's structure and present your intentions to potential investors. Speak with more established independent business owners within your industry during the business plan writing stage if possible, as their expertise can prove invaluable. Visit the Small Business Administration website and consult their business plan writing tips if you think you may need more help with this stage (see Resources).

2. Set up your independent business in a good location. Decide where your new independent business will be located. You must write an address on your business registration. You can use your home address if you have not yet secured an office or storefront. Otherwise, set up your independent business to be convenient and attractive to customers and clients.

3. Pursue funding if your new independent business does not yet have sufficient start-up capital. Your local Chamber of Commerce is a good place to start the search. Ask the Chamber of Commerce about available loan and grant opportunities for your industry. This is where a business plan can come into play, as you will need to present it to potential aides and investors.

4. Determine your new independent business' legal structure. Consult your business partners if applicable and choose between corporation, limited liability company (LLC) and partnership based on your desired degree of liability.

5. Choose a name for your new independent business. Consult your local Secretary of State or otherwise business registration agency. They may have a database of business listings on their website to search your desired new business name. Otherwise, you may need to mail in a request form to determine the desired business name's availability.

6. Complete the appropriate registration form based on the new independent business' structure. Download the appropriate form from your local business registration agency's website. Submit the completed form by mail or deliver it in person to the listed office address. Enclose any registration fees with your mailed-in submission.

7. Apply online for an Employer Identification Number (EIN). After filling out the forms online, a number is provided immediately for saving to your computer. Secure this number as this number will be used for tax identification purposes.

Tips & Warnings

• Visit the United States Government Business Link Licenses and Permits web page to determine whether or not your new independent business needs a license or permit to operate.

References

• Business Gov: Start a Business

Resources

• Small Business Administration: Write a Business Plan
• Business Gov: Licenses and Permits