Starting a business on your own can be scary at first. That is why you need to do a lot of research beforehand and make sure you know what you are getting yourself into. The experts at Beltway Movers DMV have compiled a list of the most important things you need to know before setting up business in Virginia. If you have followed this guide, you should be pretty well-versed in the whole process.
Getting started on setting up business in Virginia
One of the first things you need to do after deciding to start a business is to choose your business idea. You might have already had this idea, or you might be searching for one right now. Explore and research ideas for your business at your own pace. Take into consideration your interests, abilities, and education, as well as profitability and success. You do this by taking into consideration the interests and needs of your local community.
After doing this, you should come up with some type of business plan. Firstly, you need to research the materials necessary to start up your business. This will give you an overall idea of how much resources setting up a business in Virginia will take. Additionally, investors might ask to review your business plan before providing assistance. If you already have additional equipment for your business, movers Virginia can be of help.
Choose a business structure
After you have a general idea of what type of business you are planning on doing, it’s time to choose your business structure. The most common business structures are:
- sole proprietorship
- limited liability company (LLC)
A sole proprietorship is an informal business structure that is tied to its owner. This means that 100% of the business’s profits go to the owner. However, the owner is 100% responsible for the business going bankrupt. For example, if you are moving from MD to VA and are starting a new business there, make sure you don’t have unpaid debt in Maryland as it could affect your business in Virginia.
A partnership, like a sole proprietorship, is an informal business structure. The main difference is that partnerships have more owners. Similarly, partnerships do not have the liability protection that you find with a formal business structure.
A limited liability company (LLC) combines the protection of a corporation with the flexibility of an informal business structure. Most small businesses prefer the LLC structure. Find out if LLC is most suitable for your small business.
A corporation is a separate legal entity that is owned by multiple people called shareholders. Corporations have more formal regulations and are usually larger businesses. We do not recommend trying to start a corporation if you are just starting.
A nonprofit organization is funded by donations. People usually create nonprofits for a social cause and are usually exempt from paying taxes since the owners don’t have any on-paper profit. Most nonprofit organizations have partners that help them (not financially). If you choose this business structure, get well acquainted with the locals. Local movers Northern VA can help you set up your business and working with them might help you out in the future.
Pick a name and a business location
Now that you are consulting with other people about your business, or are going solo, it’s time to officially name your business and choose the perfect location for it. For LLCs and corporations, you will need to check that your name is different from the names of other business entities already on file with the Virginia State Corporation Commission (SCC). If you are using your name or surname as the official name of the business, you need to meet different requirements, and you need to fill a lot of paperwork.
As for picking your location, you’ll need to check local zoning regulations. Firstly, you pick your location based on different criteria such as rent, utilities, the size of the locale, traffic, and community needs. Then, you need to check the zoning regulations in order to make sure that the spot is zoned for your type of business. Even if you decide to run your business from your home, you need to check your zoning regulations. For example, you can choose your location in Arlington, and moving companies Arlington VA can help you set up your business completely, but if you have followed Richmond’s zoning regulations it could all, be in vain. Make sure to check your zoning regulations thoroughly!
The necessary paperwork for setting up business in Virginia
- Register your business. You need to do a lot of paperwork and make sure everything is in order. Registering your business is one of the hardest parts of setting up business as it usually takes the longest. It is a long process, so you need to be patient.
- Set up business banking, credit cards, and accounting. Using different dedicated business banking and credit accounts is crucial when setting up a business. This way your personal and professional accounts won’t mix. Additionally, in the case of your business going bankrupt, it will not affect your personal assets.
- Obtain insurance. You will feel safer. There are different types of insurance you can get so make sure to do your research and choose the best one for you!
This is a quick guide to setting up business in Virginia. Make sure you find the proper regulations for your part of the state as they can differ. For instance, if you are from the Southern part and moving companies Northern VA help you move there, the regulations may differ. So, be patient and good luck with setting up your business!