New business creation in the United States has seen an
unexpected—yet gladly welcomed—increase since
2020. The reasons behind the increase can be attributed to
layoffs, shifts in the way that people want to work, changes
in various industries, greater interest in online commerce,
as well as broader shipping needs.
Based on findings
in the Business
Formation Statistics from the Census Bureau, monthly
business applications in the U.S averaged around an
estimated 231,000. Since mid-2020, the average number of
monthly filings for business applications has been 92%
higher than any number seen between July 2004 and February
2020. Florida was revealed to have come out on top– as the
state with the most companies being formed in the last year
(Q4 2019 to Q3 2020)– which equates to nearly half a
million new businesses formed.
Steps to Start a
Business?
Pick your business location
The
state that is chosen for incorporation can play a huge part
in the success of a business. Factors such as income and
business taxation as well as asset protection and privacy
get decided based on state laws. Regardless of if
entrepreneurs are running a brick-and-mortar business or
launching an e-commerce store, the choice made will affect
taxes, legal requirements, and revenue.
Choose a
business structure
The business structure that is
chosen greatly influences everything from day-to-day
business operations to taxes, as well as how much of
members/investors’ personal assets are at risk. It is
always advised that business owners should select a business
structure that provides the necessary balance of legal
protections and benefits.
Decide on a Business
Name
The name of a business plays a huge part in
building the brand and the foundation of the business. There
needs to be a balance between simplicity and creativity of
the name to ensure that it is both easy to understand and
memorable.
Appoint a Registered
Agent
Registered agents are a federal requirement
across all states. A registered agent can be any individual
that conforms to all state requirements and is of legal age.
They will be responsible for handling all communication
between the business and the state, as well as receiving any
legal filings against the business.
Register the
business
The registration of the business makes it
official. Filing is done with the respective Secretary of
State– this is either done online or via physical
paperwork. The filing process can only be completed once the
business name has been picked– this also protects the
brand. If entrepreneurs are conducting business under a name
that differs from their own, they will need to register with
the federal government, as well as the state
government.
TRUiC
Tools for
Entrepreneurs
Online Name
Generators
Online name generators make the naming
process significantly easier. These digital tools use
specialized coding and algorithms to generate potential
business names that are based on factors such as keywords,
location, and industry. These tools provide a range of
options so that entrepreneurs have a wider variety to choose
from.
Domain Name Checkers
Regardless of if a
business is an e-commerce store or not, an online platform
is required to ensure that the business is relevant in
today’s digital world. It is important that the domain name
includes the business name so that it is easy to find and
does not confuse customers. Domain Name Checkers provide
users with an easy way to search for available domains that
best suit their business, and some will even allow for
immediate domain registration.
Government
Resources
The American government has expressed their
support for small businesses and entrepreneurship in the
U.S. and have provided entrepreneurs with a treasure trove
of resources to help start, maintain and grow their
businesses. These resources cover everything from how to
generate funding to tax requirements– so that
entrepreneurs do not have to filter through unnecessary
information.
Final Thoughts
Starting a new
business takes a great deal of work; however, thanks to
digital resources, the process is much easier today than
ever before. For more in-depth information, The Really
Useful Information Company (TRUiC) is an excellent source of
helpful information– if entrepreneurs were searching for
“How to start
an LLC in Florida,” for instance, the website will
break down the details in a structure that is simple and
easy to understand.
