How to Start Your Own Home Payroll Business

Companies that outsource their payrolls can be potential customers for your services.

With quality accounting or payroll software, you can run a payroll business from home. This is a task that many businesses outsource. If you have strong administrative and organizational skills, you might turn this into a successful enterprise, especially if you've had experience in a payroll department.

Things You'll Need

• Accounting or payroll software
• Printer

Instructions

1. Write a detailed business plan. Not only are such plans effective planning and organizational tools, but they are crucial if you decide to raise capital to fund your start-up company. Sample business plans are available online to help you formulate your thoughts and organize them into a standard format.

2. Choose a name and structure for your business. Decide whether you intend to operate as a sole proprietor, limited liability company, or corporation. In many states, you can operate as a sole proprietor using your own name without filing for a fictitious or trade name, but if you want to give your payroll business its own name, you'll need to formally file it. Check your state's official website for filing details.

3. Get licenses and permits for your payroll business by researching both state and federal regulations pertaining to hiring employees if you plan to do so.

4. Purchase professional accounting or payroll software that will allow you to provide all of the services you intend to offer your clients. If you don't already have experience with a particular program, obtrain trial versions of several different ones and test them out to see which works best. Make sure the software is compatible with your computer and printer.

5. Advertise your business. If you choose to target companies in a particular industry, you can introduce your services through email, mail, or phone, or by placing ads in local newspapers. Setting up a website can be an inexpensive and effective marketing tool.

Tips & Warnings

• The success of any business depends on your ability to market your services and bring in new customers. Consider taking marketing courses online or at the local community college.

References

• Kiplinger.com: 6 Steps to Starting Your Own Business
• Sba.gov: Name Your Business

Resources

• Bplans.com: Free Sample Business Plans and Software
• Statelocalgov.net: Secretary of State