Warning: Please note that I am not an expert nor a financial advisor and you should take the following with a grain of salt. That means whatever I tell you here is what I personally experienced. I just want to share my story in hopes of inspiring you all to take action.

I am in no way saying you have to do what I do. I recommend you consult with an expert before you do any of the following. Read at your own risk!

Before I pivoted to creating this blog, I had wanted to start a virtual assistant business. As I did my research on how I can make this an official business, I came across so much jargon and so many words that I lost sight of what I needed to do. 

There was so much content, so many things to take care of, and so many unknowns!

I’m sure if you’re looking to register your business, you’re probably just as confused and overwhelmed.

In this article, I am going to share with you the advice that I received and answers to the questions I had when I started this whole process.

Sometimes, I think we tend to overcomplicate things and this can often lead to analysis paralysis—information overload that causes us to not take any action.

The goal of this article is to help you get started on at least one of the steps mention in this article.

How I Got Started 

Before I even started the process of registering my business or anything, here’s what I did. I reached out to a friend of a friend who started her own business to basically ask her how she got started. 

And the number one piece of advice I was able to obtain from her is that even if I don’t know what I’m doing, I need to at least consult with a legal attorney first and foremost, and then a tax advisor. 

As I was doing my research, I did, indeed, come across something like this. As you do your research, you will come across so many articles telling you to talk to X, Y, and Z, but at the end of the day, I don’t think it matters who you talk to first. 

Just talk to someone!

What matters is that you get started. Talk to someone to talk about “starting your business.” Look up “how to start a business near me” and Google will probably be able to suggest some local businesses that will be able to help you.

But being the timid and introverted person that I was, the thought of reaching out to a stranger and speaking with them wants to make me crawl into a hole and hide.

But a part of me knows that being scared and overwhelmed often leads to inaction, so I took a step plunge.

I didn’t know what I was doing. 

It took me a month to muster the courage to reach out to an attorney. My goal was to meet with her and talk about some of the pending questions I had about how to register my business.

I scheduled a phone call with her and mind you, this one-hour consultation cost me $100!

I don’t know about other people, but to me, that was a lot of money. To make the most of my time with her, I actually did my own research first so I could ask her the things I want to know. 

This may seem counterintuitive.

Why book a call with an expert when you’re already getting this information for free online? Or why consult with her when you’re already doing your own research?

To you and others, this may not seem important, but to me it is. This consultation was 1) a way for me to verify that yes, the information I am reading online is correct and 2) just having an expert’s guidance gives me peace of mind.

Steps You Need to Take to Register Your Business

I live in Minnesota, so the following mostly applies to a Minnesota resident. But, it should still give you an idea of what you need to get started.

Mind you, when I met her, I was thinking of starting a virtual assistance business. But I think most of the stuff we talked about still applies to starting a business in general. 

1. Do a General Business Trademark Search

Before I register your business, I need to conduct a general business trademark search via google and social media of the name I want to use. This is important because I need to make sure that the name I’m going to use isn’t already federally trademarked. If it is, I could lose my business and I could get sued.

2. Go to the MN Secretary of State to Register My Business

In Minnesota, the Secretary of State is the place I would go to register my business, and I think in most states, you would go to the same place, too. But I highly recommend you do a quick search to verify that information. The one file you want to fill out is the Article of Incorporation. These usually cost between $120-$200 depending on what state you’re in.

This is the document I will need to fill out if I were to, say, register my business as an LLC or other business structure. think of it as the signup form you need to fill out to officially register your business.

There are many different types of businesses you can form. You can read more about them here.

Oh, and another thing! Make sure to renew my business every year, otherwise, you will have to pay a reinstate fee, which is a fee that you would pay to keep your business active.

3. Register for a Federal EIN Number

This is a number that identifies a business. Think of this as a social security number, but for a business. Federal EIN numbers are always free, so if you come across a shady website that charges you to pay for one, get out of there as fast as you can!

Do I need a state tax ID?

That was one of the things that I came across in my research because some states require that I need one while other states don’t require one. 

Because I was looking to opening an LLC, the attorney told me that I didn’t need to get a MN state tax ID. I could, but it’s not a requirement based on the virtual business that I was doing.

This is one of the reasons why I consulted with an expert before I started my business! I’d rather get questions to my answers than do my own research and double-cross myself!

4. Create a Business Operating Agreement Plan

This is SUPER important. An operating agreement is basically like my business playbook. It lists the operations of my business. In the event that anything happens to me, (e.g., I sell the business or add more members to the business) this document is what I would follow.

The most important thing here is that this document is what separates me personal matters from my business matters.

Legally, my business matter has to be separate from my personal matter. That’s why the operating agreement is so important because it keeps both areas separate. Not sure what an operating agreement is? Just type “operating agreement” and you’re sure to find some more answers online, or read more about it here.

5. Get a Business Account 

A business account is important because 1) it is separate from your personal account and 2) where all your expenses and revenue are managed. Each bank varies in what they need from you in order to open a business account, but some do require you to have the Article of Incorporation done first.

6. Get Business Insurance

This is also important! Business insurance is an additional form of protection in the event that my business gets sued; this is an extra protection layer of protection around my personal assets. If my business is sued, my business insurance will take the claim on my behalf and deal with it instead of me having to deal with it.

There are many different types of insurance. You can find them being offered from places where you buy insurance for your cars for example, but a quick Google search should help. The most important you want to look for:

1. Something that will cover you in the event of a liability or in the event that my company gets sued.
2. Making sure that it covers beyond one million dollars, covers a high amount that I’m comfortable with so that if my company gets sued, it covers the amount I’m being sued for.

7. Optional Step But Just as Important!

Trademarking my brand and logo.

This will give me the first right to my brand and logo and I can sue other companies if they use my company name or logo.

This is all I have to share in part one. Part two will be up shortly. In the meantime, what are your thoughts on this piece so far?

I hope this information was helpful. What questions do you have? I can’t guarantee that I will be able to answer, but I sure as heck can point you to where you need to go next.