For many individuals, the start of a new year leads them toward the idea of starting a new business endeavor. There are many items to take into consideration when looking to become a business owner, not the least of which is researching the type of business entity under which to incorporate.

Here are the steps we offer budding entrepreneurs to explore when researching business ownership as an option:

1. Write a business plan. The business plan does not have to take hours of effort and time, but it should be a time you set aside to write a road map for the future success of your business. You should write down the mission and vision for the business; what you consider its goals for success; the skills and knowledge you bring to the table; the outside sources you need for assistance, i.e., bookkeeping, marketing.
2.  Financing for the business. Will you need an infusion of capital to jumpstart the business? Will you need to apply for loans or grants? What kind of capital do you have to begin the endeavor?
3. Will you need to rent a physical location for the business? Will you be a virtual business in which you only need to purchase equipment to operate? Will you be manufacturing goods or products?
4. Under what legal structure will you operate the business? Spending time with an accounting and small business professional will help you determine which business entity is best for your particular business. The legal structure will also determine the type of tax implications.
5. Registering a business name and applying for a tax identification number needs to be part of the business start up process. Will you need to collect and pay state, local, or federal taxes? If you are unclear as to the answer to this question, you will need to have an accounting professional on your team.
6. Are there business licenses and permits necessary to operating the business? How long will it take you to apply for, and receive those licenses and permits?
7. Will you be hiring employees? Do you understand your fiscal responsibilities toward those employees? Will you need to withhold federal and state taxes? If these questions are some you are unable to answer, speaking with a payroll specialist is something that needs to be done before you hire that first employee. IRS rules and regulations regarding the withholding and payment of payroll taxes are stringent and almost ever-changing and you need to be protected from the first time you cut a payroll check.

Starting a new business is an exciting time, but is also one that needs to be undertaken with care and consideration in order to make it a successful, thriving enterprise.