Checklist for Starting a Sole Proprietorship

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Business Name:
___ Check on business name availability.
___ File and publish a fictitious business name (FBN) registration, if required.
___ Consider registering your trademark or service mark at both federal and state levels if you will do business nationally and your business name will identify your product or service.

Licenses and Permits:
___ Get Federal Employer Identification Number (FEIN), if required.
___ Get State Reseller's Permit.
___ Get local county and/or city license or permit.

Insurance:
___ Get business liability insurance for injury to other people and damage to their property.
___ Make sure you have adequate and appropriate business use insurance coverage for your vehicles and those of your employees when used for business purposes.
___ Get property and theft insurance covering damage to your business space and tangible business assets.
___ Get product liability insurance, if appropriate.
___ Ask your insurance broker or agent about other recommended coverage.

Taxes:
___ Get IRS Publication 334 - Tax Guide for Small Business.
___ Get IRS Publication 583 - Taxpayers Starting a Business.
___ Check with state and local tax authorities regarding business taxes and any required registration.
___ Consider getting professional accounting software.
___ Consider hiring a part-time bookkeeper and consulting an accountant about setting up an accounting system.

Home-Based Business:
___ Make sure your homeowners or renters insurance covers liability for business-related injuries to other people and damage to their property -- especially if people will be coming to your home on business.
___ Mke sure your homeowners or renters insurance covers damage to and theft of your business assets.
___ Check to be sure your business usage complies with:
...___ Local zoning ordinances.
...___ Your lease.
...___ Covenants, conditions and restrictions affecting your property.
___ Get IRS Publication 587 - Business Use of Your Home

Hiring People:
___ Obtain an Employer Identification Number from the IRS (Form SS-4).
___ Get worker's compensation insurance.
___ Register with the state government for payment of unemployment compensation taxes.
___ Get a supply of IRS Form W-4 (Employee Withholding).
___ Get a supply of INS Form I-9 (Employment Eligibility Verfication).
___ Know the guidelines for hiring independent contractors.

Good Things:

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Ten Tax Tips

Income Tax Basics

Starting a New Business

Buying a New Home

Choosing a Tax Return Preparer


Quick Links:

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Internal Revenue Service

Franchise Tax Board

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