About 400,000 small businesses start up each year. Do you know what documents you need to open a small business? You need a small business checklist to organize the necessary business documents!
The small business documents you need include your insurance, a business plan, and tax documents. Knowing the steps to start a business can help you get off the ground.
Check out these five necessary documents to open a small business.
1. A Small Business Checklist Begins With Insurance
One of the many documents you need to open a small business includes proper insurance. You’ll need liability insurance, but other insurance documents can protect you from malpractice or if you sell a faulty product.
When you assemble your small business documents, consider a business owners policy.
2. A Business Plan
Small business documents include developing a business plan to lay out the goals of your business in writing. In one of the first steps to starting a business, you can dictate management, marketing, and sales strategies and how you will develop products.
A business also weighs risks and benefits.
3. Tax Documents
As part of your small business checklist, you must have the proper tax documents. The correct business documents for taxes include an employee identification number and sales tax identification. You don’t need a federal tax ID if you are a sole proprietor.
Check with a tax attorney to ensure you have the proper small business documents. Setting up the correct tax documents will make tax time easier when you start a business.
4. Legal Documents
Contracts, agreements, and even noncompete clauses are legal documents for your small business checklist. These legal documents will make sure you have the proper system in place if you disagree with a vendor or employee.
You can draft these business documents yourself; however, an attorney can make sure these legal documents express your needs.
5. Permits and Licenses
Permits and licenses are among the small business documents you’ll need to open a business in many communities.
Food businesses, for example, need the proper licenses from the health department or a license to sell alcohol. Other businesses need the proper permits to have live music.
Before opening your business, check with the jurisdiction to find the proper permits and licenses. You don’t want to incur fines or penalties, which could cost you more.
Five Types of Documents for Your Small Business Checklist
Starting a small business means putting together a small business checklist to get your operation up and running. You’ll need insurance, a business plan, and tax documents. You also can’t ignore legal paperwork and the proper permits.
Once you have the correct documents in place, you can open your business and start making money! It will give you peace of mind knowing that you followed the right plan.
If you are looking for more information on protecting your business and assets with insurance adequately, please keep reading our blog!