Checklist for Starting a Sole Proprietorship
Checklist for Starting a Sole Proprietorship
We are often asked what steps are required in order to establish a new self-employed (sole proprietorship) business. Although this checklist is not all-inclusive, here is a document DiSabatino, CPA often provides to clients which may be a helpful guide for you. Please call our office to consult with us on deciding which entity might be correct for you, and the actual steps you will need to perform.
![checklist](/~sharpcp5/templates/yootheme/cache/83/checklist-83df1617.jpeg)
Business Name
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Check on availability of name with the County.
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File an assumed name or fictitious name certificate, if required, with local or state fictitious name office.
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Publish a notice of assumed name or fictitious name in a local newspaper, if required.
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Consider registering your trademark or service mark at the federal or state level if you will do business regionally or nationally and will use your business name to identify a product or service
Licenses and Permits
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Get Federal license, if required.
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Get state license, if required.
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Get local license, if required.
Insurance
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Normally, get liability insurance (for injury to other people and damage to their property).
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Make sure there's adequate coverage for your vehicles and those of your employees when used for business purposes.
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Normally, get property and theft insurance (covering damage to your business space and your tangible business assets).
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Get product liability insurance, if appropriate.
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Ask your insurance broker or agent about other recommended coverage
Taxes
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Get IRS Publication 334, Tax Guide for Small Business
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Get IRS Publication 583, Taxpayers for Small Business
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Check with state and local tax authorities regarding business taxes and any required registration.
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Consider getting QuickenBooks (Intuit) or similar small business accounting software.
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Consider hiring a part-time bookkeeper and consulting an accountant about setting up a simple accounting system.
Home-Based Business
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Make sure your homeowners insurance covers liability for business-related injuries to other people and damage to their property--especially if people will be coming to your house on business.
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Make sure your homeowners insurance covers damage to and theft of your business assets.
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Check to be sure your business usage complies with:
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local zoning ordinances
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your lease
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covenants, conditions and restrictions affecting your property.
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Get IRS Publication 587, Business Use of Your Home
Hiring People
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Obtain an Employer Identification Number from the IRS.
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Get workers' compensation insurance.
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Register with the state government for payment of unemployment compensation taxes.
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Get a supply of IRS Form W-4 (employee withholding).
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Get a supply of INS Form I-9 (employment eligibility verification).
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Know the guidelines for hiring independent contractors.