Expert Tips For Starting A Business Legally

By Kimberley Borgens

Entrepreneurship – the place where dreams are forged and destinies reshaped. It may not be the most exciting thing you’ve thought about all day, but starting a business legally can be the difference between thriving and ruin.

Keeping your business compliant is not just a box to check; it’s a fundamental aspect of your entrepreneurial journey. It ensures your foundation is strong, your dreams are safeguarded, and your future is boundless. Today, I will get you started in the right direction as you make sure you are considering all aspects of the business you are creating.

So, let’s begin as we explore the principles of legality, organization, and success. The path may be challenging, but every step is a stride toward your dreams.

Moving from Hobby to a Purpose-Driven Enterprise

When you decide to take the path of entrepreneurship, your journey is not merely a hobby; it’s a powerful, life-altering pursuit. To succeed, you must treat your business as the enterprise it deserves to be.

A passionate pursuit to make a difference

Recognize the distinction between a casual hobby and a passionate, purpose-driven business. This recognition is your first step towards empowerment and success.

Your business isn’t just a passing fancy; it’s your vehicle for growth, your means to make a significant impact. By treating it with the seriousness it deserves, you send a powerful message—to the world and, most importantly, to yourself—that you are here to make a difference.

Proof through documentation

But how do you make this shift from hobbyist to entrepreneur? It begins with one crucial element: documentation. The power of documentation cannot be overstated. It’s your proof of existence in the business world, a testament to your commitment. Every transaction, every interaction, and every piece of communication should be meticulously documented.

Think of it as building a trail of evidence that not only keeps you accountable but also forms a solid foundation for your business. This isn’t just about appeasing the IRS; it’s about setting a high standard for your enterprise.

Documentation empowers you. It gives you the confidence to stand up to challenges and assert that you are a force to be reckoned with in the business world. It’s not about drowning in paperwork; it’s about building a framework that supports your dreams and ambitions.

Establishing Your Business Identity When Starting a Business Legally

Your business is more than just a name; it’s an identity, a representation of your dreams and aspirations. Establishing a strong and clear business identity is your North Star, guiding you toward recognition and success.

Choosing a business name

Start by choosing a name that resonates with your vision. Your business name isn’t just a label; it’s the first impression you make on the world. Think of it as the cornerstone of your identity. It doesn’t have to be elaborate or intricate; it just needs to be uniquely yours.

But remember, your business name is more than just words; it’s a promise. It’s a commitment to your customers that when they see your name, they know they can trust you. So, choose wisely and choose with passion.

Determining a business structure

Once you’ve established your identity, the next crucial decision is your business structure. It’s like building the scaffolding that will support your entrepreneurial dreams. Do you see yourself as a sole proprietor, an LLC, a partnership, or perhaps even a corporation? Each structure comes with its own set of advantages and responsibilities.

As an entrepreneur, this choice is a testament to your independence and your vision. It’s not just a legal decision; it’s a declaration that you are here to make a mark in the business world. So, choose the structure that aligns best with your goals and ambitions.

Your business identity and structure are the foundation on which you’ll build your empire. So, remember that you are not just choosing a name or a structure; you are shaping the identity of your success. Your business is your legacy, and it’s waiting for you to define it.

Mastering the Art of Financial Management

When running a business, considering your financial strategy is incredibly important. It’s not just about making money; it’s about mastering the art of financial management. So, let’s dive into the heart of your business: your finances.

Separating business and personal finances

One of the first principles to embrace is the importance of maintaining separate bank accounts for your personal and business finances. This separation is not just a technicality; it’s a necessary commitment. It ensures clarity, transparency, and accountability. Every transaction in your business account is proof of your dedication and ambition.

Keeping your books organized

But it’s not just about separation; it’s also about organization. Keeping your business finances organized is like having a well-structured roadmap. It’s your way of telling the world that you’re prepared and professional. It’s about creating a digital or physical trail that not only keeps you on track but also prepares you for any potential audits.

Consider using tools like QuickBooks or enlisting the help of a professional bookkeeper to streamline your record-keeping strategy. These resources are not just for accountants; they’re for women entrepreneurs who understand the power of organization.

Managing finances effectively

Effective financial management is not just about making money; it’s about keeping money. It’s about optimizing your expenses and maximizing your profits. By organizing your accounts receivables and payables, you’re moving closer to financial mastery. It’s a reflection of your commitment to sustainability and growth.

As a woman entrepreneur, your financial acumen is your superpower. It’s your way of saying, “I’m not just in business; I’m here to thrive.” So, organize your finances, create a system that works for you, and take charge of your financial journey. Your success story is written in the numbers, and it’s waiting for you to author it.

Legal protection is your business’s fortress. It’s the shield that safeguards your dreams from potential storms. As a woman entrepreneur, ensuring that protection is not just a choice; it’s a responsibility you owe to yourself and your vision.

Liability insurance

Liability insurance isn’t just an extra expense—it’s your safety net. It’s the reassurance that if unforeseen circumstances knock on your door, you’re ready to face them head-on. Insurance helps you prepare for the best without having to expect the worst. By acquiring the right insurance coverage, you’re fortifying your dreams, making sure they stand strong against the unexpected.

Business licenses

And then there are licenses. They’re not just pieces of paper; they’re your permission slips to explore the world of entrepreneurship freely. Licenses may seem like administrative hurdles, but they’re the gateways to credibility and trust. They tell your clients that you’re not just a passing venture; you’re here to stay.

Every license you obtain, and every legal protection you secure is a step forward. It’s not just about compliance; it’s about empowerment. They are your way of declaring that you are a force to be reckoned with in the business world.

So, don’t hesitate to invest in the necessary protection and licenses. They enable you to soar higher and farther, to explore uncharted territories, and to conquer new horizons.

Sustaining Success: The Entrepreneur’s Guide to Long-Term Growth

This journey of entrepreneurship is not just about achieving success; it’s about sustaining it. Your goals, values, structured availability, and family balance are the pillars that uphold your entrepreneurial vision. They’re your keys to long-term success, and you, as a woman entrepreneur, are the architect of this extraordinary path. 

  • Setting goals: As an entrepreneur, setting clear goals is like charting your course on a grand adventure. Your goals are your destination, your vision, and your inspiration. They give purpose and direction to your journey. But setting goals is not just about reaching a destination; it’s about defining the path you’ll take. Your goals are your North Star, guiding you through the challenges and opportunities that lie ahead. It’s about acknowledging your strengths and capitalizing on them. It’s about embracing your unique vision and creating a roadmap to realize it.
  • Identifying your values: And let’s not forget your values. They’re not just words on a page; they’re the moral compass of your business. Your values define the kind of entrepreneur you are. They reflect your integrity, your ethics, and your commitment to excellence.
  • Structured availability: Structuring your availability is another critical aspect. It’s about balancing your time efficiently, ensuring that you’re not just busy but productive. You may often find yourself juggling various roles, and structured availability is your secret weapon. Effective time management, coupled with well-defined office hours, allows you to make the most of your day. It ensures that you’re not just working in your business but also on your business. It’s about prioritizing tasks, setting boundaries, and creating a routine that supports your goals and values.
  • Work-life balance: Balancing family life is a tightrope act, but it’s a vital one. As a woman entrepreneur, you’re not just a business owner; you’re a caregiver, a partner, and a friend. Balancing your professional and personal life isn’t just about finding harmony; it’s about maintaining your well-being. Your family is your support system, your motivation, and your cheerleaders. It’s about fostering open communication, involving your loved ones in your journey, and finding time for what truly matters.

Embrace these principles, and your journey will be fruitful and fulfilling. You’re not just building a business; you’re shaping a legacy. Your story is in your hands, and it’s a story of determination, courage, and boundless achievement.

Crafting a Legacy: Your Unique Path in Entrepreneurship

Your path is a unique one, shaped by your dreams, your ambitions, and your indomitable spirit. You are not just starting a business legally; you are crafting a legacy, one that transcends boundaries and defies expectations.

You are not just building a business; you are crafting your story. Your story is one of determination, courage, and boundless achievement. It’s a testament to your spirit as a woman entrepreneur, and it’s waiting for you to write the next chapter.

Kimberley Borgens

About the author

Kimberley Borgens was married at 18, a mother at 19, and divorced at 20, she has journeyed from being a single mom on welfare to recognizing her strengths, fighting for what she believes in, and successfully building 5 thriving businesses with hundreds of employees and million-dollar budgets. Kimberley is a speaker, business mentor, and coaches her clients to transform their small business into a thriving business. Kimberley is living her own legacy as she inspires and motivates women to be fearless, become more like a CEO of their business and life, and enjoy the freedom they've dreamed of. She knows what it's like to start from nothing and build a strong solid business and she can help you too.

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