*Disclaimer* This is all information from my own personal experience. The materials available on this website are for informational purposes only and not to provide legal or financial advice. Please consult a legal or financial expert to obtain advice for any particular issue or problem.

TL;DR

1. Choose what type of business entity to start- *research the legislation of your particular state*

2. Register your business name

3. Request EIN

4. Download copies of tax forms

5. Identify NAICS

6. Open business bank account

7. Create template forms- invoice, contract, waiver, receipt, etc

8. Create a spreadsheet for tracking inventory, invoices, payments, etc

9. Save all paperwork and receipts

10. Create standard language for email communication (responses to inquiries, replies to potential clients, advertising messages, etc) and a standard signature block.

11. Maintain consistency- logo, colors, language, font, etc.

     A few months ago, I embarked on the journey of starting my own business. Before I started this endeavor, I knew very little about business- I knew about limited liability companies (LLC) because my dad has his own LLC. I started my search from scratch, literally googling different derivatives of "business owner". Here's what I found out in my research and while I was creating my own sole proprietorship.

     There are a few different types of business ownership, including sole proprietorship, partnership, corporations, and limited liability companies (LLC). Specifically, individuals can form an LLC or create a sole proprietorship. These different entities vary based on their reporting requirements, paperwork, etc. Business regulations are not standard nation-wide, so you need to research your state regulations.

     I eventually decided to proceed with a sole proprietorship. One of the key differences between a sole proprietorship and an LLC is the distinction between the business and the owner. **Remember, it's important to do your research on the laws in your state.** An LLC theoretically offers more protection- the general principle is that an LLC is separate from the owner. If an LLC is sued, they can't access your personal assets. A sole proprietorship doesn't offer the same boundaries. Sole proprietors have a single owner with complete control over the business, including profits and business decisions, and that individual is also responsible for all debts. The sole proprietorship is not a separate entity from its owner, and therefore it is not taxed separately. In other words, sole proprietors report income and expenses on the proprietor's federal individual income tax. One piece of advice I was given is that an LLC gives more credibility to your business. Personally, I don't think my clientele will be more likely to work with me if I added the designation "LLC" to my business name. In my opinion, given the nature of my business, my medical credentials/ board certification/ degrees are the biggest source of my credibility. MD, FACS, board-certified, etc- these mean something in the medical community.

     To create a sole proprietorship, I registered my business name and requested a federal employer identification number (EIN). An EIN is not required by the Internal Revenue Service (IRS) for a sole proprietorship- I don't think it's required on my tax forms. However, all the banks I contacted require an EIN to open a business bank account. After registering my business name, I downloaded copies of the tax forms that are required. It helped me understand what would be expected when filing taxes. Much less intimidating than waiting until tax time.

     Next, I identified my business category as described by the North American Industry Classification System (NAICS). The NAICS is comprised of many categories and sub-categories of business industries, such as construction, utilities, food services, arts and entertainment, real estate, or education. According to the IRS website "NAICS is frequently used for various administrative, regulatory, contracting, taxation, and other non-statistical purposes…Some contracting authorities require businesses to register their NAICS codes, which are used to determine eligibility to bid on certain contracts." Personally, I was required to identify my NAICS when I opened my business bank account.

     The next step is opening a business bank account. A separate bank account is necessary to distinguish your personal business income from your wages (if you have another job). First, you have to make sure your bank supports business accounts. For anyone who uses USAA for your banking needs, please take note that USAA does NOT support business accounts and you'll need to establish an account with another bank. The process of meeting with a bank manager to set up my bank account was very educational- I learned about the difference between ACH, quick deposit, and wire transfers.

     Those are the initial steps to having a legitimate business. The next few things help boost your credibility by creating a distinct brand. I initially had one website, which was mostly educational, with a single page for my business. My moniker evolved naturally- docrot was my username in medical school. This eventually morphed into Doc on the Run, which has been my Instagram name for years and became my Twitter handle over a year ago. Initially, my business name was "ABS-CE Prep with Doc on the Run", which was my moniker. Eventually I scaled this back to ABS-CE Prep. 

     While I was still "ABS-CE Prep with Doc on the Run", I decided to make a logo. I used Tailor Brands, which is a user-friendly platform for developing a unique branding and logo. I chose an icon and font to create a simple but distinct logo. Consistency is important. As mentioned in my website creation post, I used the same color scheme for my logo and my website. Using a 6 digit hex code ensures that my blue text and red icon in my logo are the same as the red and blue on my website.

     Next, depending on your business, you will likely require at least a few standard forms. My business is service-based. I needed a template for invoices and receipts, as well as a standard contract/ waiver to be signed before beginning sessions with a client. Prior to my business name change, I used my logo on each form.

     Finally, if you still have questions, I recommend consulting a lawyer or business expert.