Small Business Start-Up Tips

start up business

If you’re preparing to start your first business in Buck County, Pennsylvania, you’ve chosen your locale wisely. Bucks County is home to a diverse spread of industries, bustling with an educated workforce and a higher median income salary than average states.

Not only is Bucks a great place on its own, but by choosing Bucks as your small business startup headquarters, you’ve ensured that you’re central to the hustle and bustle of both Philadelphia and Princeton, NJ, as well. Read on to learn the most important tips for starting a small business.

1. Learning the Legal Business Structure

Before choosing a legal structure for your new business, you must understand your options on what structure of your business you want to have. The following are the business structures you can consider:

  • Sole Proprietorship: This default business structure doesn’t require special registration.
  • Partnership (LP or LLP): A partnership is a great option if you’re starting your business with a partner and want to protect your personal assets from professional debts. LP (Limited Partnership) gives one partner more control over the business as well as more liability. LLP (Limited Liability Partnership) protects each partner equally from the other.
  • LLC (Limited Liability Corporation): This option gives the best of both worlds in partnership and corporation structures. LLCs offer protection against personal liability, but the owners are still labeled as self-employed, and the fees that go along with it.
  • Corporation: This structure officially separates your business and your personal assets.
  • Non-Profits and Cooperatives: For businesses that align with tax-exempt requirements or are employee or member-owned.

2. Understanding Legal Requirements

After you’ve settled the legal structure for your business settled, it’s time to ensure that you’re in compliance with federal, state, and local laws that govern your business and your particular industry. In Pennsylvania, that means you must register for an Employer Identification Number (EIN). This helps you register with the state department of revenue.

Whether or not your business sells taxable items, how many employees you have, and other more are all important pieces of information. Hiring a business attorney in Bucks County will help you break down your specific needs.

3. Business Insurance

Just like any other large item you own, sufficient business insurance is critical in protecting you and your business in case of an accident, disaster, or lawsuit. The U.S. Small Business Administration will guide you in finding the right insurance for you. Protect your business and ensure continued success by hiring a locally trusted business attorney with the Olen Law Office.