As you start your own business, you will find out that there are a lot of things that you should do. You will find yourself busy in creating your products, finding customers as well as following all the legalities needed for your business to operate. It seems that there is a never ending list of things that you should do and sometimes, you can forget to do the most important things if you do not have a list. This small mistake can lead you to having serious consequences and you can’t be excused just because you have lots of things to do.
To prevent this, we have created a list of the first things you can do to prevent you from being penalized.
- Come up with a partnership agreement – You don’t need to have your products on hand or even the funds for the products you want to sell to be able to create a partnership or co-founder agreement. In this, you need to identify who will be the ones who are in charge of the money for the funding, those who will do the labor as well as how much is paid and who gets paid. You can also designate how much of the company is owned by a certain partner. This will help have a harmonious relationship with your partners.
- Name Your Company – When you name your company, there are certain considerations that you should know of. You have to make sure that you are not in violation of the trademark of others. You can do this by doing your research online.
- Apply For Your Business License – Even online businesses need their license to operate if you are really serious with your business. Even if you are just working at home, you still have a physical location in your home. You need to do this as early as possible to prevent penalties.
- Set Up Your Business’ Financials – A basic financial system should be created for your business so that you can keep track of your income or expenses. You need to have a separate bank account for your business and don’t use your own personal accounts. If you have employees working for you, then you might also need to find a payroll service company to help you out in your payroll. They are really helpful in the business because you won’t need to waste your time trying to figure out how to do the payroll and risk doing calculations that you have to repeat again. When you hire a payroll company, there is lesser chance for you to be penalized.
- Create Written Agreements – These agreements are between you and your contractors, clients, or customers. Whether they are working for you or your the one providing them the service and products that they need, you need these written to minimize misunderstandings. It can also help protect yourself from future lawsuits and help create better relationships with other people too.