Forms You (Really) Need Before Starting a Business
You've heard it a million times: "if you have passion and persistence, you will be a successful entrepreneur." But are these simple words actually true? Maybe not. The truth of the matter is, you need a lot more than entrepreneurial zeal in order to produce a successful new business—and it begins with a number of important forms.
Filling out new business forms may not be the best part of a startup career, but it is necessary. Business formation is a systematic process developed by the Small Business Administration in order to develop and grow our businesses. The forms can be found at three different government levels including federal, state, and local.
But what forms do you need to focus on in the beginning of your startup process? We've narrowed down the most pertinent ones so that you can finish filling out the forms and start building your dream.
Business Plan Forms
Obviously, the most important "form" to fill out is your business plan form. You business plan answers the following questions: What product/service do you provide? Who is your competition? Is your product or service in high demand? What are your company values and culture? What are your business's short- and long-term goals? A business plan's purpose is to provide information for investors as well as lay the groundwork for the business.
Partnership Agreement
A partnership agreement is a contract between two partners who are doing business together. It sets the terms and conditions of the relationships of the partners. The agreement usually includes: percentages of ownership and distribution of profits and losses, description of management powers and duties, the term of the partnership, how the partnership can be terminated, and how a partner can buy his/her share of the partnership.
Business Licenses and Permits
Application forms must be filled out in order to obtain a business license. If you run a small business only within your city, you will have to apply for a local business license through the city. If you run a large business, you may also have to apply for a state business or federal business license. If your business is selling anything tangible and taxable, you will also have to obtain a seller's permit, which includes a tax ID number that you can use to file your taxes. Most of these include registering the business with the Internal Revenue Service in order to receive a federal ID for taxation purposes. Depending on what products or services you provide determines the type of business license or permit that you need. For example, businesses in the food industry require specific registration processes.
Business Creation Forms
Business can be sole proprietorships, limited liability companies, limit liability partnerships or corporations. The Small Business Administration website identifies the forms necessary to create each type of business. Most business names must include the type of corporation that they are (for example, a limited liability company must include LLC after its company name). In order to develop a name, the entrepreneur must file necessary trademarks and patents to protect their products and symbols that are associated with them.
DBA (Doing Business As) or fictitious business names allow you to register a trade name if you are using any name other than you own in the operation of your business. Therefore, if your business name contains your real name, you must register your trade name within your state. Once you confirm that your chosen business name is available, you will be able to fill out a form and pay a fee to register that particular trade name.
Financial Forms
There are many financial forms in the startup process. Financial forms for entrepreneurs usually deal with capital in the beginning—whether you are raising capital from personal savings, loans, investments or grants, you will most likely be required to fill out specific paperwork.
Every business is different, that's why every business will fill out different forms and paperwork. In order to determine exactly what your business needs to fill out, visit the Small Business Administration site. Now, hurry up and fill out those forms so you can start creating your dream!