How to start your own business.

No matter what type of business you are going to start, there are some fixed rules. It means that before you sell your first plate or screw, these are some essential steps.

• LEGALLY INSTITUTE YOUR BUSINESS: As a first step you have to register it with the state, where there are several categories depending on the price and the risk you want to take. Although there are several options, the most common are as an independent owner or creating some type of corporation.

The first is the cheapest, but at the same time it’s risky, since if you do not create some type of corporation, you will be responsible for all lawsuits, debts and liabilities of your business. When you create some type of corporation (best known, the LLC (Limited Liability Company) it protects assets that are not related to your company.

• REGISTER YOUR BUSINESS WITH THE IRS: To protect your social security number, once you register your business with the Internal Revenue Service (IRS) you will obtain an identification number for your business. The EIN (Employer Identification Number) is kind of like unique social security for your business, which helps protect your personal information.

• REQUEST OPERATING LICENSES: Depending on the type of service you are going to provide, it is very likely that you will need several licenses, especially if it involves construction services, food sales, liquor or others. At a minimum, you’re going to need two. In most cases, one for the state of Nevada and one for the city in which your business will operate.

As a note, if you have a mobile business, you need to acquire a license for each city in which you will operate. And in the case that the area is not affiliated with any city, that of the county.

• OPEN A BANK ACCOUNT FOR BUSINESSES: It is important to have a bank account for exclusive business purposes. This way, you will be able to manage your company easier and in case of any audits by the government, you will not have to expose your personal accounts.

• OBTAIN A COMMERCIAL INSURANCE POLICY: It is essential to obtain the proper commercial insurance. There are several levels of protection. In the next blog we will be talking about all that.