1. Choose a business structure.

Establishing your business as a sole proprietorship, partnership, limited liability company (LLC) or corporation will have implications on the amount of tax you’re liable to pay and your level of personal liability.

2. Decide on a business name and register the business.

Once you choose a name for your business, you’ll need to register the business with state authorities to form a legal entity.

3. Obtain federal and state tax ID numbers.

Also known as an Employer Identification Number (EIN), tax ID numbers allow you to pay all relevant taxes.

4. Apply for any licenses and permits.

Check with local and state authorities to see if you’re required to obtain any licenses or permits to operate the business.

5. Create a business plan.

Include your vision for the business, your proposed service model, your sales and marketing strategy and financial projections.

6. Organise insurance.

Consider if you need general liability, property, income, professional liability or any other types of insurance.

7. Find suitable premises.

Source a suitable location to operate the business from.

8. Source any tools, equipment and inventory.

Consider everything you’ll need to operate your business day-to-day.

9. Set up your systems.

Work out how you’ll manage your point of sale, customer database, inventory and accounts to ensure the business can run smoothly.

10. Start trading!