LLC or other legal structure
If you start a new hair extensions business, this means more than just finding a hair supplier and sell to your clients. It also entails dealing with various amounts of paperwork and compliance at the state, federal and local levels. On top of that, it is good to be prepared if your business grows from home based to a greater and more complex enterprise. It’s time to consider the incorporation of a LLC.
To help you to protect your business and personal affairs, as from the beginning of this new venture, we share with a small checklist. This checklist is initially valid for US citizens, who think of an LLC, but can also be of great help for hair extensions business owners in other countries.
1. Write a hair extensions business plan. Form goals and objectives for your hair extensions store. Start with a detailed outline of what you plan to accomplish, the market you want to focus on, the extensions you want to sell and how you make your money.
2. Think of the legal business structure. Setting your company up as a corporation or LLC are popular entity structures for many small businesses. An LLC protects owners’ personal assets from business debts and liabilities. Additionally, incorporating an LLC can provide credibility and tax benefits. If you are not sure what legal structure fits best, go to the special Wizard
3. Obtain start-up capital. Whether you use your own savings or obtain loans, starting a business requires money, to find suppliers, to buy hair, to setup a web store or to market your business. The loan process can take months to check off your business start-up checklist, so start early. Lenders often request a completed business plan prior to approval of funding.
4. Obtain a Federal Employer Identification Number. Otherwise known as an EIN, Incorporated businesses that hire employees must have one of these. They are issued by the IRS or tax authorities.
5.Satisfy business licensing requirements. Most state, county, and local governments require businesses to obtain licensing before they begin to operate.
6.Get a website. A website is an essential item to complete on your small business start-up checklist in today’s business world of internet searches and social media. Register a URL that is memorable and relevant to your company and/or industry. Not having an effective website eliminates opportunities for new customers and potential profit.
7.Develop business collateral. Businesses use customized letterhead, cards, and forms with their company name and legal form (LLC), logo and website for marketing and credibility.
8.Open a bank account and merchant account. To protect their corporate or LLC veil, businesses must maintain separate business and personal accounts and records. Establish a separate business bank account so that your personal assets are not co-mingled with business funds. Banks may also require an Employer Identification Number (EIN) in order to open a business checking account.
9.Identify where to get help. Know where and when to seek advice from other sources, such as attorneys and accountants or marketing experts, to assist you with specific questions about your business. Establish a board of advisors or mentors to help you along the way. This is one most entrepreneurs tend to leave off their new business checklist. You can use the experience of HowToSellHairExtensions to get your own mentor.
10.Follow government rules. Operating a business means satisfying ongoing government and legal requirements to maintain the company’s good standing.
What else to think about before you start selling hair
We found 10 other things to think about, to make the launch, growth and future of your business and personal wealth a success.
1. Appoint a Registered Agent. Businesses must maintain an address for service of process where legal documents can be received.
2.Satisfy insurance requirements. Incorporating or forming an LLC does not provide your hair store with business insurance. Most companies obtain general business insurance from an insurance provider. Corporations and LLC s that hire employees also typically obtain unemployment and workers compensation insurance.
3.Complete additional filings as needed. Companies that expand to do business outside their original state of incorporation or LLC formation generally register in those additional states. Amendments can also be filed if the information listed on the formation document, like the legal name of the company or address, changes.
4.Register “Doing Business As” names. Will your corporation or LLC do business under a name other than its legal name filed with the Secretary of State? If so, it must file a DBA (Doing Business As) name.
5.Protect your company’s name. Businesses file names on a per-state basis, so other companies may be using the same or a similar name in other states. Conducting a trademark search ensures that your unique company name isn’t already in use. Make sure to perform this check before you claim a domain name for your website.
6.Draft internal documents for the business. Corporations are governed by their internal bylaws, whereas LLCs are governed by an operating agreement.
7.Establish a business presence. Identify a location for the business and establish a business address.
8.Establish proper accounting procedures. Paying your taxes is only part of the picture when it comes to setting up your business. Whether you need help setting up your chart of accounts, have questions about completing a specific tax form, or need answers to tax questions be sure to get an Advisor.
9.Get a business credit card. A business credit card helps separate your professional and personal expenses and can help you protect your personal assets from business liabilities.
10.Get started. Schedule an opening day for your business and let us know so we can tell the world. Giving yourself a goal helps keep things on track and can increase your productivity.
This checklist is a service of The Company Corporation , check their website to learn more or to schedule an appointment with them!