It's the holiday season, and the beginning of the end of the year, and many people are thinking about what they are going to be doing in 2022. I know I am thinking about that, but that's a different story. Something that some people might be thinking about, is how they can start an online business in 2022? In the post-Covid economy, many more businesses are going online, and becoming completely virtual. In today's Freedom Friday blog and email newsletter, I want to answer the question, “How can I start an online business in 2022?” and provide some practical steps in starting that online business you might be dreaming of starting in the new year.
1. Develop a Business Plan
The first step in starting a successful online business is developing a business plan. You need to define your product carefully and do your homework to make sure there is a market for your product. Your business plan is a road map to help guide you along while you start and grow your online business; it can be modified and changed as your goals change. There is a lot of information online about how to develop a business plan, including free templates.
2. Gather Your Team
The second step in starting a successful online business is gathering your team. What is your team? Your team will be the people who will provide you the necessary support, advice, and guidance you need in order to start your online business. Your team can include an accountant or tax professional, an attorney, a mentor, and even a business coach. You might ask if you should consider including LegalZoom or a DIY resource as part of your “team.” LegalZoom and DIY resources can sometimes be a good resource for some people, some of the time. However, you should be very careful when using LegalZoom or a DIY resource to avoid future problems. Some documents you get from these websites may be okay for certain kinds of people, in certain situations, to meet certain kinds of needs. However, if you're starting an online business, just being “okay” isn't good enough, and you should invest in better resources, including possibly an attorney to make sure your online business is started on the right foot.
3. Choose Your Business Entity
The third step in starting a successful online business is choosing your business entity. One of the most important decisions you will make as the owner of an online business is your business entity. This is a critical decision, and you should consider consulting with an attorney to assist you in making the right decision. For many online business owners, choosing a limited liability company (LLC) is the right approach, but even if that's the short answer, there is more to do than just deciding to form your online business as an LLC. For starters, you and/or your attorney need to conduct a name search with the Oklahoma Secretary of State at the beginning of this process. Also, if you're interested in trademarking your business name, you or your attorney should also conduct a trademark search.
4. Create Your Business Documents
5. Apply for an EIN
The fifth step in starting a successful online business is applying for an EIN. What's an EIN? An EIN is your online business's federal Employer Identification Number, which is used for tax purposes by the Internal Revenue Service (IRS). Most banks will require you give them this number if you want to open a business bank account for your online business. Your EIN may also be required to apply for any licenses or permits you might need to operate your online business.
6. Open Business Bank Accounts
The sixth step in starting a successful online business is opening business bank accounts. If you're the owner of an online business, its important to keep your business assets separate from your personal assets. If you mix or mingle your business assets with your personal assets, and your online business gets sued, you open yourself up to liability personally. You don't want your home, your car, or other personal property in your name to be at risk and so it's important to separate your online business bank account separate from your personal bank account.
If you're interested in starting an online business anywhere in Oklahoma, or if you already have an online business in Oklahoma and you're looking to grow, contact our experienced business attorney Jonathan Krems at [email protected], or call (405) 509-9096 to schedule a FREE strategy session today.
For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/