So, you have been dreaming about this big idea for months, even years, and have finally decided to take the leap. Starting a business is an exciting yet nerve-wracking endeavor, but with the right levels in place can be one of the most rewarding experiences of your life.
Now that the country seems to be somewhat recovering from the impact of COVID-19, and the economy has started slightly stabilizing, it could be the best time to kick off your business idea. With this in mind, we thought we would take a look at the key principles you need to have in place to start a new business in Missouri.
Insurance Is An Absolute Necessity
Although considered a grudge purchase, insurance is one of the first things that you should sign up for when starting your business. Whether you are a client-facing business, physical store, or employee-based office, business insurance is an absolute necessity to mitigate financial loss in your business.
Before signing up for insurance, make sure you do thorough research on the right insurance for your company. You will want to get tailored Missouri commercial insurance that caters especially to your business. So, if you are a small start-up with a few employees, you will need a policy that differs from that of a restaurant or client-facing business.
Make sure that your property, equipment and stock are covered, as well as your customers, employees and overall business functions with custom-made policies.
A Business Model Will Define Your Company
Once you have an idea of what you want to do, it’s time to actually start putting pen to paper. You will need to do some thorough research and planning to get the business up and running.
First, establish if there is a need for your business in Missouri. Missouri has one of the lowest corporate tax rates in the country and is specifically known for its agriculture, aerospace, transportation equipment, chemicals, and financial services industries.
Next, investigate your competition. What are their USPs, price points, product or service offerings, as well as their current success and customer feedback? Once you have all of this data, you will be able to start mind mapping a business plan that defines your company.
You Will Need To Register Your Company
Before launching into registering your business, you will need to know what kind of business you will be starting. There are four legal entities that you can register yourself as: an LLC, corporation, partnership or nonprofit. Each has its own advantages and disadvantages and based on what you are wanting to achieve, you will need to decide which will suit your model best.
You will then need to go about registering your business. Based on the type of business you choose above, this will involve a few steps.
First, you will need to name your business and pick a registered agent (who can be your attorney or simply a registered agent service allowed to operate in the state) who will accept tax and legal documents on behalf of your business. You will then need to apply for an Employer Identification Number (EIN) which identifies businesses for tax purposes. Lastly, you will need to file your formation documents and pay a filing fee to get it registered. The fee is determined by the type of business you are registering.
Financial Success Means Getting It Right From The Start
In order to make sure that your company runs successfully, you will need to ensure that you have a stable financial foundation while it is operational. This means opening a business bank account as you register the company, getting the right funding for your company and opening a credit card.
Do not skimp on a qualified and knowledgeable accountant and tax consultant. With someone on your side, you will be able to make strategic financial decisions for your business. It is one thing to hire someone who can balance your books, but it is another when they can analyze your finances and create a growth strategy for the mid to long term.
Tax is also a vital component to this, and you will need a practitioner who will be able to assist you to gain all the benefits of tax kickbacks as well as ensure that your business does not run into any trouble.
Despite not having the largest state economy, Missouri is one of the friendlier states for starting a business. If you choose it as the location for launching your business, make sure you get all of the basics right when starting, so that you will be able to focus on your operations, customer base and marketing to continuously grow your business.