Step 1: Create a business plan
Are you interested in starting a business? Writing a business plan is one of the most important steps because it acts as a roadmap for your early days. A business plan usually looks three to five years ahead and outlines the path your company plans to take to achieve annual milestones, including revenue projections. A well-thought-out plan also helps you step back and think objectively about key elements of your business venture, which can help you make decisions on a regular basis. The Small Business Administration has information and sample business plans to help you get started.
You can also use your completed business plan to discuss next steps with mentors and counselors from SBA resource partners, such as SCORE, Small Business Development Centers (SBDCs) and Women’s Business Centers (WBCs).
Step 2: Decide on your business structure and register your business name
Before choosing a business structure, consult with an attorney and/or accountant, as each structure has its own legal and tax consequences.
You will need to register your business. To see if your proposed business name is already registered, we recommend running a name search online or at your office. If you are organized as an LLC, register with the North Carolina Secretary of State. Corporations also register in North Carolina.
Step 3: Obtain license requirements
The City of Raleigh does not require a business license to operate a business within the City of Raleigh. Depending on the nature of your new business, you may need federal, state, and local licenses and permits. Most areas have zoning restrictions that prevent you from operating a business from certain locations, including your home.
Step 4: Obtain required tax information
If you hire employees or start a partnership or corporation, you'll need an EIN (Employee Identification Number). Read more about EINs and apply online with the IRS.
You must register with the North Carolina Department of Revenue to collect sales and use tax. The Department of Revenue provides you with information about sales and use tax reporting and remittance requirements.
Step 5: Identify funding sources
North Carolina small business owners have funding sources available at the federal level and in the state of North Carolina. Learn more about accessing funding available to small businesses here.
Step 6: Learn about your employer's reporting requirements and responsibilities.
Learn more about how to register as an employer, unemployment insurance, and workers' compensation insurance.
Additional considerations:
- Consult an accountant regarding bookkeeping and taxes.
- sign up for insurance.
- Review the contract with your legal counsel.
- Review applicable regulations (OSHA, EPA, Labor, etc.).
- Register a trademark or patent.
- Create policies and employee handbooks.
- Join trade associations, chambers of commerce and other professional organizations and connectors.
Step 7: Select and use experts
The expertise of outside professionals plays a vital role in starting a business. They provide a data-driven perspective, enabling you to make informed decisions. Successful businesses are often backed by a “BAIL” team: a group of experienced professionals who provide valuable advice and guidance on the key aspects of starting and managing a thriving business. The acronym “BAIL” stands for Bankers, Accountants, Underwriters and Lawyers. It is important to remember that these professional advisors typically expect to be compensated for their services.
SBA-funded organizations such as SCORE, SBTDC, Women's Business Centers, and Veterans Centers are important resources. These organizations provide referrals to BAIL professionals for their clients. Chambers of Commerce also provide networks of business professionals.
