Rated as one of the best states to start a business, Arizona is a haven for entrepreneurs and businessmen. With 5 million new tourists every year, Arizona has one of the most attractive landscapes, such as the Grand Canyon. With so many visitors every year and a substantial local population, it is no wonder that many people are starting businesses in Arizona.
But, before taking a big leap, you need to have a solid plan about how to start and conduct your business. Despite Arizona being a perfect place for businessmen, many people have still failed to develop a strong investment mainly due to hasty and immature decisions.
So, if you plan to start a business in Arizona, here are a few things you need to know before making any decisions.
Make a Business Plan
Before making any irreversible mistakes, you need to reevaluate your product and target market. You should have a clear idea of what you are trying to sell, and the people who are going to buy it. Think about how well the physical location will benefit what you’re trying to sell.
You need to capitalize on the uniqueness of your product compared to similar products in the market, and capture your customers on that basis.
Registering Your Business
After you have made a sound plan about how to run your business, your next major task should be looking into the details on how to register your business with the state of Arizona. It is extremely important to choose the right legal structure for your business, as there are a lot of legal proceedings and documents involved in registering and running a business.
There are a lot of registering agencies that help new businesses in setting up and dealing with the registration process of companies. Only reputable agencies like Universal Registered Agents should be chosen to handle your business to make sure that your startup is handled with extreme care.
License and Tax Obligations
After forming your business, you should know about the local tax and license laws to make sure that your business is compliant with the state. Even though the state of Arizona doesn’t require you to obtain a general business license, you still have to obtain permits and pay special taxes on a federal, state and local level. You should spend some time researching these taxes so that hefty fines can be avoided.
Make a Separate Business Account
Using an account dedicated to your business is essential to protect your personal assets and profits from other sources of income. If you have a single account for your business and personal use, all your assets will be at risk in case you get sued.
A designated business account will also make the process of tax filing and accounting a lot easier, and help you calculate your expenses in a better way.
Finance Your Business
The most important step to grow and maintain a business is to gather and obtain finances. Sound financing is the only way for small businesses to grow. You can consider getting loans from a bank, but in order to get a loan at a reasonable rate, you need to have your documents adequately managed, and have a good credit score.
After completing all the above steps, you will need employees to help you run your business. First of all, you should be registered with the IRS so that you receive your EIN (Employer Identification Number). This number is used to identify that a business operating within the U.S is compliant with the taxing procedure. Furthermore, you will need proper paperwork for each employee, and should understand the rules and regulations surrounding an employee’s rights.
Proper planning and solid financing should give you a great start and a bright future as an Arizona businessman.