If you are planning on starting a business, you need to know what documents are needed. If some required documents are missing or incomplete, it might stop you from opening up your business at all. Here is an overview of the common steps to take when starting a new business.
1. Business Permits
Before starting a new business, the entrepreneur should find out if any government licenses, permits, or registrations are required. These tend to be divided into two main groups:
- Trade licenses and business registration. The entrepreneur requires obtaining these before signing a business lease or renting space for the new venture.
- Government-issued operating licenses, such as food service, retail sales, medical equipment rentals, transport services, etc. Some industries require more than one permit from different authorities at either federal, state, or local levels before a license is granted.
2. Business incorporation documents
Business incorporation documents are required from the government to register a business. There are two types of business structures: sole proprietorship and partnership. In the case of a sole proprietorship, it is enough to provide your name as the owner and sign any relevant documents. However, it becomes trickier when incorporating a company with another individual or several other individuals. Even if you choose not to take on partners, for now, you still need to draft an agreement that defines roles and responsibilities between all co-owners and shareholders. You can also do all of this online with sleek.com/sg/incorporation/, and easily get everything you require. This is helpful because you can check out the documents in advance before making any commitments.
3. Accounting Records
Businesses need to keep records of the money spent over a certain period. The entrepreneur has to decide which time frame is suitable for their business, but it is usually one year or fiscal quarter. No matter what type of business you are running, there are multiple benefits to keeping an electronic bookkeeping system. This way, all sources of income and expenditures can be tracked easily, facilitating proper record-keeping and tax obligations. For an easy way to do this right now, even before your business starts up, you can use cloud accounting software. These tools allow small businesses to track their income and expenses without investing too much time or resources into account management. Create invoices by email automatically or tie them directly with any other bank accounts you have, so it’s even easier to report and stay ahead.
4. Trademark Documentation
A trademark is a special form of intellectual property that protects the name or logo of your business. It is important to register a trademark before you launch your business. Once the registration is granted, no one else can use the same or similar name for their business in your area. Registering a trademark proves that you are legally allowed to have exclusive rights to your trademark within certain geographic areas, and it allows you to sue anyone who infringes on your trademark without your permission. This is a very significant document to have as it can ensure that your business is not being copied by someone else.
5. Business Insurance Documentation
Most businesses need one or more types of insurance to ensure their assets are protected against any unforeseen dangers. The entrepreneur has to decide which type of coverage they need before launching the business, so they can find an agent who specializes in their industry or product line. Once you have decided on the types of coverage you’ll want, the next step is getting quotes from different providers until finding the best deal available for your enterprise. This will make sure you are protected against any unforeseen circumstances and that your business will continue to run smoothly even in the worst of times.
6. References for your business location space
Businesses have to provide several references before signing a lease agreement for commercial space. This is even more important if the entrepreneur has little or no experience in managing a similar business. A reference letter can help you land that perfect spot, but it must be written correctly to do that effectively. The first step is to find past customers who are willing to provide testimony about their business relationship with you and your company’s ability to meet deadlines, provide quality products/services, etc. Make sure these attestations are not too short or long, so they don’t seem insincere or biased either way.
Make sure you have all your documents when planning on starting a business, and make sure to keep good records of everything you do because it could be important in the future. With this said, if you keep everything in order, your business will blossom and always be successful!