Easy guide to starting a home-based business in Ohio
05 February, 2019
If you are planning to start your business in Ohio, it is a great idea even if the company is a home-based one. This is because the Ohio market offers a lot of opportunities. The new entrepreneurs would get the chance to easily launch and set up their client base as well as do great in the market here. If you are a new founder, you would only have to spend a little to market your business and to register it.
This means that you would not be spending a lot as you would have spent in case you decided to start a traditional brick-and-mortar based company instead of a home-based business. As a matter of fact, operating a business at home doesn't mean that you do not have to follow any regulations and there are no restrictions for you in Ohio. Just like every other business in Ohio, your home-based company would also have to follow the required planning and would also have to conform to country, state and city regulations.
To make your process easier, here are the steps on how to start your home-based business in Ohio:
Step 1: Plan Your Business Idea
The very first step that you should work on is planning your idea in details by creating a business plan and mapping out everything on how it would work on the plan as you have it in your head. The main benefit to create this is plan is that it helps you in seeing everything about your startup in an illuminating and concise way.
With the business plan, you would be able to focus on what is important, build realistic objectives, and prepare a much more effective accountability system. And without a business plan, you would be like a blind bird. Moreover, a business plan is needed the most when you want to raise capital to run your company. The investor would want to see what they are about to get into. Without which, you would not be able to raise capital at all. Hence, it is better to always be ahead of the plan and ready.
Step 2: Select the Business Structure and Register Your Company
After you have your business plan ready, the next step is to select the legal entity that you want your company to be as. Other than this, you would have to use the type of entity and choose a business name before you register them with the government. You would have to file a form by adding the details of the company entity, number of directors, their details, and the name of the company. But before you can choose a name for your company, ensure that you cross-check to see if the name is available or not (can be seen on the Ohio Secretary of State website). Using the available name, you can register your company with the government.
Moreover, depending on the type of legal entity you choose, either your personal assets would be protected from any liabilities of the business or not. If you choose an LLC or a corporation, that is when your personal and business assets are kept separate. On the other hand, if you select to be a sole proprietorship or a partnership, your personal assets would not be saved in case there is a lawsuit against your business.
A lot of the entrepreneurs usually choose to form the LLC due to the benefits that is has. It has the advantages of a corporation and does not have any of the disadvantages of the corporation like the limitation of corporate officers or board of directors, and the double taxation issue.
Step 3: Sync With The Ohio Tax Code
After your company has been set up, you would need to get your EIN which would be used to file the taxes. And you would not have to worry about any of the business taxes as far as you handle them as and when required. Take the help of a professional to enjoy various breaks, kickbacks and incentives while you file the taxes. Also, learn all about the obligations of the government that you need to comply with to be on top it as well.
Step 4: Get The Appropriate Licensing/Permits
The regulatory environment in Ohio can be both simple or complex depending on the place in the state where you are starting the business. Other than this, the regulations would also depend on the kind of industry in which you are in. This means that you would need various permits or licenses to run your business. Even home-based businesses might need some licenses. So, ensure you have the desired ones.
Do not rush this step and ensure that you have all the licenses you need before you can begin with the operation. As soon as all is done, you can then begin to run your business and earn lots of profits. You can check out the list of various business licenses or permits that you might need in Ohio from here!
Step 5: Open A Business Bank Account
Even though this step doesn't seem important, mostly if you have a sole proprietorship, it is very important for those who open an LLC or a corporation. This is because, your business would need a bank account that is not associated with any personal expenses. Moreover, this step is not just vital for being professional, it is also important to keep track of what business expenses are there that would be used for the tax season.
It would also save you time and money. This means that you would not have to hire someone to pick out and separate the expenses. Other than this, if by mistake you mix your expenses, you can fall in trouble with the IRS. This would lead to issues where your company would the be considered as a sole proprietorship and you would lose all the protection against your assets. Hence, it is better to have your business bank account prepared and used for business related transactions while the personal transactions are kept separate.
Step 6: Get A Virtual Address
Do not use your home address for your business at any cost. It would look unprofessional and also make clients come to your house every now and then, The best way to get around this is use a virtual address. There are many agencies that offer the virtual business address services along with mail forwarding services.
Every mail that comes would be sent to the virtual address (which is normally the address of the company offering you the services). Then the company would forward the mail depending on the plan you choose with them. It is the best way to seem professional and it costs very little.
Step 7: Finance Your Company
It does not matter which industry you are in, you would obviously want to grow your company after some time. And if you want your home-based business to become a big company one day, you would have to raise capital at some point of time. Moreover, to begin your business, you would obviously need some resources. For such cases, you can raise money by either bootstrapping (if you have money), or asking your family or friends for a little loan. When you move ahead, you might need the help if investors as well, but that would be when you have a big office space or need one.
Step 8: Market Your Business
Now that your business is all set, you need to let people know about what you are offering. For this, you would have to market you business. The internet marketing strategy is a good one to start with. In this case, you would have to create your website and work on the search engine optimization. You can also work on social media to market all about what you are offering. It is through this you would be able to get more clients and a lot of work.
Bottom Line - Seek Professional Help
It is very simple to start a home-based business, but the steps are not much different from opening a traditional brick business. Just that you would spend a little less when you focus on working from home. But as your company grows you might need to get an office space or so, depending on what industry your business is dealing in.
All-in-all, pick up your pen and begin to prepare your business plan right away. As soon as it is ready, do not forget to register your business. You can take the help of a professional for registration process. IncParadise can offer you with company incorporation services along with the virtual office services. Check it out here to know more!
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