Learn how to start a business from home. There are many advantages of starting a small-scale business or micro-business.
These typically low-risk, bootstrap businessesĀ operated by solo entrepreneurs have the potential for significant scale and long-term profitability. Some micro-enterprisesĀ have made millions of dollars and others have even grown into huge multi-billion dollar companies.
If you’re planning to start an online or home-based business, there are 4 regulatory and business development tasks you need to do:
1. Ā Get the Proper Licenses and Permits — EveryĀ businessĀ needs federal, state or local licenses and permits to operate.
- The easy way: ContactĀ the county clerk office in the city where your business is located for information about permits, licensing requirements and fees. Some of the forms can be done online.
- Another easy way: Ā You can easily identify the licenses and permits required for your business by using this handy toolĀ created by the USĀ government.
2. Ā Register Your Business Name (Doing Business As)
- The easy way: Ā If you’reĀ starting out as a freelancer or solo entrepreneur, you can useĀ your given name asĀ the legal name of your business.
- If you want to use a specific name for your business, you cannot operate under that business name until it is officially registered with your local government. Click here to find out how to choose and register your business name.
3. Ā Financing Your Micro-Business
- The easy way: Ā Most solo entrepreneurs bootstrap their business ventures. They use their savings or credit cards.
- Some micro-enterprise owners borrow money from their family and friends to start their business.
- The the Small Business Administration (SBA) have financing programs available for micro-business owners, including the Basic 7(a) Loan ProgramĀ and the Microloan Program.
- To identify the right financing for your business, you can use theĀ Loans and Grants Search Tool.Ā In a few quick steps, the tool will guide you to government resources to access financing for your business.
- Women Business Owners – Finding the Right Loans, Grants and Financing
- Learn how to prepare a loan proposal.
- There are lenders that offer personal and business loans with faster and easier approvals.
4. Ā Filing and Paying Taxes — Tax planning should be a key component of your business plan.
- Learn about your tax requirements as a micro-business owner.
- There are many tax advantages for having a business.
- Discuss with your accountant or tax professional how you can cut your taxes by taking advantage of tax deductions for independent contractors, freelancersĀ and other self-employed workers as well as entrepreneurs and business owners.
- You can watch this IRS video to learn more.
How to Start a Business From Home: Ā 8 Tips for Starting a Home-Based Business
Learning How to Start a Business From Home? Additional Resources You Can Use
- Finding Government Contracting OpportunitiesĀ — Federal government contracting is a complex area to enter, but sub-contracting opportunities may represent an opportunity for the micro-business owner.
- Learn more from this article: Five Tips for Finding Federal Contracting Opportunities.
- Becoming An Independent Contractor — Becoming an independent contractor, consultant or freelancer is an increasingly attractive option for many workers.