Startups are one of the most important types of business because they create new employment and solve problems in new and innovative ways. The potential for startups is considerable, but not every startup is able to reach unicorn status. Many startups have more realistic ambitions, and achieving these ambitions is often demanding and stressful. The US Census Bureau announced the US business formation statistics for April 2022. A total of 423,153 businesses were incorporated in April, which is an increase of 1.6% from March. 47,171 of these businesses have planned wages included in their business proposal.
There are many tools available to help entrepreneurs with their new startups to get their business idea operating in the real world. Several roads to success exist for a startup, and most of these paths begin by establishing the startup as a type of business entity. Two of the most common business entities for startups are LLCs and S Corporations. Both of these business entities provide limited liability asset protection to business owners. This creates a legal separation of the assets and liabilities of the business from the assets and liabilities of the owner or owners.
1. LLC Formation Service
LLC formation services help entrepreneurs start their businesses by handling the administrative work required to have an LLC incorporated. This is typically performed for a small fee, and the level of service that an entrepreneur will receive varies on their choice of provider. Using a service is recommended for convenience and to ensure that the paperwork is completely correct the first time. An LLC is a business entity that would be best for entrepreneurs who are not looking to sell equity to raise capital.
2. Corporation Formation Service
Corporation formation services assist business owners with the process of incorporating a new corporation. This process is more difficult than forming an LLC, and there are additional requirements that must be met on an ongoing basis. These include annual shareholder meetings. However, a corporation is more flexible in its ownership structure as shares can be bought and sold freely. S and C corporations serve different purposes and are suitable for different circumstances. A corporation formation service can help an entrepreneur decide which path is right for them.
3. Registered Agent Provider
All LLCs and Corporations are required to maintain a registered agent. This is an individual or business that receives important documents from the state and other parties on behalf of the business. A service is recommended to fulfill this role because a registered agent is required to be available during business hours at the location of the business every working day of the year. This is an onerous expectation and one that is better dealt with by professionals.
4. Virtual Office Space
Virtual office space can be useful for small businesses that are not looking for a physical office location. The impact of the pandemic has made remote working a far more common arrangement, and many startups are choosing to work this way. Remote work has certain benefits, such as being able to recruit from a far broader range of individuals and lower overhead costs. Virtual office space can also offer a business a greater deal of legitimacy when approaching potential clients.
5. Business Bank Account
A business bank account is essential for business. A business bank account is the foundation of a business’s credit score, and this score is very important for accessing financing for a business of any size. A business bank account also creates a separation between the finances of the business and the finances of the owner or owners. This makes distinguishing between business and personal affairs far easier.
6. Website Builder
An online presence is vital for any business of any scale. Many customers will evaluate a business based on its website. The impression that the website leaves on the customer can make or break a sale. A business website that is easy to navigate, provides useful information, and is aesthetically pleasing is what consumers are looking for. A website builder can be a great way of producing such a website without web design skills or programming abilities.
7. Social Media Presence
A social media presence is important for a startup because it helps spread the word about a new business or product. This helps startups connect with their target audience in a very direct way which can be very helpful for marketing. A social media presence is also an opportunity to reveal the identity of the brand to the market and how a business differentiates itself from the pack.
Many startups are founded all the time, and they have enormous potential for success. However, this success is never easy to achieve, and entrepreneurs need every tool available to help them reach success. This article has outlined seven tools that new startups can use to help cement themselves in the market. This includes establishing the business as an official business entity, securing a bank account, and developing a presence online. All of the tools mentioned above can help make these processes easier and more enjoyable.