Updated March 29, 2021
More and more small business are launched and based from home every year. The flexibility and freedom that comes with working from home is a key driver. Perhaps you have experienced this for the first time during the 2020 Pandemic. For others, the entrepreneurial spirit and desire to do something different is the reason run a business from home. If you are looking to run a business from home, you may already have your business idea. Or perhaps you are working through a few final ideas. But once you do have that one idea that you want to bring to life, the next question is how?
In this article you get 8 Steps to Start your Business at Home. Plus, read on to find out how a Virtual Office can make this process even easier!
Steps to Start & Run a Business from Home
Here are the 8 Steps to starting your business at home. For the complete guide to Starting your Small Business, simply Click Here to request your FREE GUIDE.
Step 1: Choose your business structure
The business structure that you choose will determine how your company operates. It will also determine your legal liability, certain taxes, and what rules and regulations you must adhere to. Choosing the right structure is therefore extremely important. There are many different types of business structures. The most common forms of business are sole proprietorship, partnership, corporation, and S corporation. Click Here to learn more about the different types of business structures. Most entrepreneurs will set their business up as Limited Liability Company, or LLC.
Step 2: Choose a Name For Your Business
Your business name is one of the most defining characteristics of your company. It must be unique – it cannot be used by any other operating company in the state. Once you have settled on a company name, you should run a comprehensive name search. This is to make sure you aren’t infringing on naming rights. If your desired name is already taken, you won’t be able to use it. There are also a number of other naming regulations imposed by the state. Be sure to check with local regulatory bodies.
Step 3: Designate A Registered Agent
A Registered Agent is required to file your company with the Department of State. A Registered Agent is an individual or entity formally responsible for receiving legal and State correspondence for your company. For example, subpoenas or renewal notices. There are certain rules that you must follow when designating a Registered Agent. For more information on finding a registered agent, CLICK HERE to request your Starting a Small Business Guide! Note, right before this Step 3 is where it is suggested to start a Virtual Office! A Virtual Office will give you a Physical Address AND a Registered Agent, so read below for more on this!
Step 4: Apply for an EIN/ITIN
An Employer Identification Number (EIN) is a unique 9-digit number. It is used to identify your company for taxation purposes. This number is required to open a business bank account or conduct any tax-related or financial operations, such as opening a Payment Gateway for online selling. Your Registered Agent may apply for one on your behalf.
An Individual Tax Identification Number (ITIN) is a unique 9-digit number. It acts as a social security number for tax purposes. A social security number is required to complete the application for an EIN. If you’re not a U.S. resident, you will need to apply for an ITIN before you apply for an EIN. You do not need to be a U.S. citizen or resident to apply for this number. To apply for an ITIN, visit the IRS website here for a list of required forms and acceptable ways to submit your application.
Step 5: Obtain Licenses and Permits
You will need to apply for the required permits and/or licenses. These will depend on the nature of your business activities and your operating location. Businesses are subject to municipal, county, state, and federal licensing requirements. Regulations vary by state, county, and business activities. For information on federal business licenses, visit the Small Business Administration website.
Step 6: Open a Bank Account
Your business will need a local bank account in order to begin operations. Using your personal bank account is not recommended as it can cause tax and other legal hazards. Requirements for opening an account will vary based on your chosen bank, but will require a business address.
Step 7: Research Your Tax Requirements
There are various taxes that may be applicable to your business. If you are unsure, we recommend that you consult with an attorney and professional tax accountant.
Step 8: Research Additional and Ongoing Requirements
There may be additional or ongoing requirements for your business. These requirements vary by state and business structure. Be sure to check with your state and local business authorities. Make sure that you understand all of the requirements to start and maintain your business.
A Virtual Office Can Make Starting a Business at Home Even EASIER!
What is a Virtual Office
A virtual office is a service that provides businesses a physical address plus other services without the high costs of a physical office space. For entrepreneurs looking to run a business from home, a Virtual Office gives them a jump start. Virtual Offices offer business solutions that range from basic to more comprehensive needs.
At the basic end, Virtual Office providers, such as Starthub, will give you both a physical address and Registered Agent. As indicated in STEP 3 above, a Registered Agent is Required to register your business. If you haven’t registered your business with the State, well then you really don’t have a legitimate business. A physical business address establishes your presence in a desired location without the high overhead or rental costs.
Now, for the more comprehensive end. It enables you to work virtually anywhere in the world while still enjoying the benefits of a physical office. Virtual offices offer a range of services to help your business run efficiently from wherever you are! Aside from a physical address, a virtual office can come with a variety of features. These can maximize your efficiency and boost your business credibility. Depending on your provider, a virtual office can also provide features such as:
- Virtual mailbox and mail management services
- Local or toll-free phone numbers
- Live receptionists or answering services
- Access to meeting spaces
Why use a Virtual Office to Run a Business from Home
There are so many benefits that come with a Virtual Office, ranging from the tangible to intangible. Be sure to read more about these Benefits of a Virtual Office, but here is quick run down.
It’s Easier on Your Wallet – a Virtual Office is more affordable than leasing or buying a physical office space.
It Adds Credibility – It establishes your business in a premium business location. This shows your customers that your business is here to stay.
Supports Work-Life Balance – You’re in charge of when and how long you work, as well as where you work from!
A Professional Live Receptionist – You save time on answering calls! And customers are always greeted with a live person to speak to.
More ‘Room’ to Grow Team – Expanding your team has no limits with a virtual office. Space is not a limiting factor. The entire team can work remotely and grow as needed.
No More Long Commutes – Save hours and hours by not having to commute in traffic to your office! That leaves time to do the tasks that really matter to your business.
Opportunity to Expand to New Markets – You can expand with new Virtual Office locations in several cities. This is an opportunity to take your business across the United States or even the world!
Get On The Map – Get listed on Google with Google My Business, which is great for search engine optimization. It will help your business get a head start when new clients start looking for services that you may provide.
Flexibility – Virtual Office providers, such as Starthub, let you upgrade your plan at any time based on needs. Need more than a premium business address? You can upgrade anytime!
Access to Business Support – A virtual office can give business support. Mail handling, call handling, and other business support services are at your disposal.
What Next to Run a Business from Home?
Once you have formally established your business, be sure to check out productive ways to run it from your home. While there are HUGE benefits when working at home, there are also challenges to be aware of. Putting the right things in place can make a world of difference in ensuring you work efficiently and effectively.
Here are a few other articles you may want to take a look at as you get started.
- Can I Use My Home Address for My LLC?
- What are Requirements to Start an Online Payment Gateway in the US?
- Effectively Build and Manage Virtual Teams
Now, get ready to start a risk free Virtual Office and your amazing business!
TRY STARTHUB VIRTUAL OFFICE SERVICES RISK FREE!
At Starthub, we offer comprehensive virtual office solutions We’ll even give you your first month FREE. Just click here to get started. You’ll receive a prestigious mailing address in downtown Miami. You also get dedicated mail handling services and an innovative digital platform to receive and direct your mail. Plus, 24/7 customer support. For more information on why Starthub is the best choice for your virtual mailbox, click here.