When you have decided that it is finally the time to transition from working for another company to running your own, there are numerous changes that you will likely need to make in how you approach your work. Transitioning to small business ownership can be an exciting and exhilarating time but can also be stressful if you do not know what to do in the process. Get to know some of the steps that you can and should take to make this transition a successful one so that your small business gets off to the right start.
File Your State Business Registration Paperwork
Whether your business is a sole proprietorship (just you), a partnership, an LLC, or other type of business, you will need to file paperwork in the state or states in which you plan to do business in order to conduct your business legally and officially. The process of filing paperwork to register your business is done through the office of the Secretary of State.
You will need to fill out forms, create Articles of Incorporation or other signed documents to file with the state, and pay the necessary business fees. This would also be a good time to get an employer tax identification number from the Internal Revenue Service so that you can file taxes for your business when the time comes. If you are a sole proprietor, you could theoretically use your social security number instead.
Get Commercial Auto Insurance
Because you are just starting out in your business, you may not be able to purchase separate vehicles for business and work purposes. If you are going to be making business deliveries in your vehicle, hauling equipment, or performing any other business endeavors using your car, you need to be sure that you get yourself commercial auto insurance.
Should you get into an auto accident in your vehicle while performing business duties but you only have personal car insurance, you may run into trouble with your insurance company. Because you were using your vehicle for purposes other than personal, recreational use, the insurance company could have grounds to deny any insurance claims made, leaving you solely responsible for the costs of repairs and damages to your vehicle, to property, and potentially to the vehicle and property of any other parties involved. Be sure that you are fully covered by commercial auto insurance in order to avoid these potentially costly pitfalls. Contact a company like Metropolitan Insurance Service Consultants to learn more about this type of insurance.
With these basic tips in mind, you will be well on your way to opening your business successfully.Share