The Ultimate Checklist for Starting a Home-Based Business

Ready to be your own boss? We’ve compiled a list of all the important steps you need to take to get your business off the ground.

If you’re thinking about starting a business, this go-to checklist will help you cover all the bases and successfully launch your entrepreneurial venture—right from your very own home. 

 

Make a Plan

	Identify your target customers and your competitors. Conduct market research and pinpoint how you can serve your clients in ways your competitors can’t.
	Create a business plan. Mark your calendar with reminders to update the plan on a regular basis.
	Build a marketing plan.
	Construct a financial plan, making sure you have enough money to cover six months’ worth of living expenses while you launch your business. Consider outside funding if money is low.

Make It Legal

Naming

	Create a business name and tagline. Go with something that is easy to pronounce and understand.
	Having trouble coming up with a name or tagline? Ask your family and friends for their feedback and suggestions.
	Check the Internet and business authorities to make sure the business name you have chosen isn’t already taken.
	Register your business name with the state.
	Conduct a trademark search and register your trademark.
	File your DBA (“Doing business as”) name, if you wish to do business under a different name.

Licensing

	Get a city business permit, county permit and seller’s permit if applicable.
	Find out if you need any other types of permits and acquire them promptly.
	Determine whether or not you need state professional licensing.
	Calculate the appropriate sales tax amount that you’ll need to charge.

Other Legal Matters

	Find out if the neighborhood where you live is zoned for home businesses.
	Research any regulations or restrictions that may exist for home-based businesses (e.g., signage, parking, etc.) in your neighborhood.
	Get an attorney who specializes in small businesses.
	Determine the structure of your business (e.g., corporation, sole proprietorship, partnership, limited liability company, limited liability partnership, etc.) and work with your lawyer to complete the appropriate paperwork.
	If you are planning to hire employees for your business, contact the IRS to request an employer ID and any forms your workers have to fill out in order to work for you.
	Contact your local INS office to request an Employment Eligibility Verification form (Form I-9), which provides proof that your employees can legally work in the United States.

Manage Your Money

	Establish a business bank account and apply for a business credit card.
	Apply for an EIN tax ID.
	Purchase and install business accounting software on your work computer.
	Hire an accountant.
	Calculate how much financing you will need to start your business.
	Make a budget for your supplies, advertising, shipping, staff, personal profit, etc.
	Start collecting receipts. Your business-related purchases, as well as some of your household expenses, can be used for tax returns.

Get Your Workplace Ready

Office Space

	Pick a calm, quiet office location that is away from excessive noise, free of distractions, and conveniently located in your home.
	Confirm that you have easily accessible phone and electrical outlets in your office.
	Make sure that your desk is large and comfortable enough to fit your business needs and that it fits properly in your office. Invest in a comfortable, quality desk chair.
	Ensure that your office provides you with enough space to spread out your work and accommodates some extra furniture, like comfortable seating for visitors, shelves/filing cabinets for storage, etc.
	Make sure your office is properly lit and well-ventilated.
	Equip your office space with all the necessary technology, such as a telephone, a computer, a printer/scanner, external hard drives, office software, etc. Use these items strictly for your business, and designate another computer for family use.
	Acquire business insurance.
	Eliminate fire and safety hazards in your workplace. Keep an eye out for overloaded electrical outlets, excessive clutter, loose cords, etc.
	If your home office is easily seen from a first-floor window, use curtains or shades to create privacy.
	Set up a separate phone line and/or P.O. Box for your business if you prefer not to use your personal information.
	Stock up on basic office supplies, such as notepads, pens, paper clips, etc.
	If necessary, upgrade your Internet speed for faster, more reliable Internet access

Inventory Storage

	Select a storage space that is appropriately lit, well-ventilated and easy to access.
	Make sure your storage location is climate-controlled if necessary for your product.
	Purchase shelving to help keep your product organized in your storage space, if needed.

Market Yourself

	Set up a business email account.
	Create a unique logo for your business, as well as matching designs for your marketing materials (e.g., brochures, business cards, letterhead, direct mail supplies, etc.).
	Register your company’s unique domain name.
	Design a website for your business. If applicable to your business, consider creating an online storefront where you can sell your product, or start an engaging blog where you can offer your customers useful content and/or exclusive discounts.
	Establish accounts on social media networks that are most appropriate for your business and promote your product/service on social media daily.
	Find and join networking groups that are relevant to your business.