Philip Steffes ⋅ Waterville , MN Cray Inc. ⋅ 37 years experience

I agree with Brian's answer. In addition to a business model you need to settle on the type of legal entity you want your business to be. You need to form a corporation, limited liability company, or something similar (there are a number of options under each state's laws) to ensure you limit your family's personal liability to the extent possible. Doing business as a sole proprietor or partnership is not a good idea absent any other legal structure. You should start at the Secretary of State's web site - they will have a good explanation of the forms of business possible. Business formation regardless of type is both easy and inexpensive - particularly if you don't have plans to expand into a large business. Send me an email message if you have questions or need more information.

Good luck,

Phil

Brian Richardson ⋅ Columbus , IN U.S. Army, Sergeant ⋅ 8 years served

For local permits and licensing, check with your city and county offices. You'll need to check into the proper type of insurance to cover you in other people's homes too.

I would also suggest getting a business model in place to help ensure you are aware of and addressing all aspects of business (costs, marketing, customers/product fit, revenue streams, etc). Feel free to reach out to me if you have other questions.

Brian Richardson
www.VetLaunched.com
brian@VetLaunched.com

Dennis Crumb ⋅ Lafayette , CO Crumb & Associates, LLC ⋅ 14 years experience

Cristhian, thanks for your service!

You have been given a lot of good advise. let me summarize the ones I think address your question then add some of my own advise.

Decide what form of business you want to set up, Corporation, LL C, Sub chapter S, etc. The simplest one that provides personal liability protection is an LL C, but there can be tax advantages for some of the others. There are good websites that can help you decide and assist you in applying for the form of business you choose.

Check with you city, county for business licence requirements.

If you will be selling materials to end users you will need to get a sales tax licence and file sales tax returns.

Check with a business insurance agent to see what kind of coverage you should have.

If you will have employees you will need to get an employer ID from the IRS and perhaps the state.

As you start to earn money you need to start making quarterly tax payments to the IRS and the State Franchise Board.

If you can afford it I would meet with a local CPA to help you with all of this. If not I would be happy to walk you through this process. I am a CPA and business adviser. I don't practice in California but can help with much of this and point you in the right direction for the rest of it.

Thanks
Dennis

Vivek Vadakkuppattu ⋅ Seattle , WA Amazon ⋅ 14 years experience

Cristhian, thanks for your service. I have first hand experience getting a business off the ground including some of the initial legal/admin stuff. I am happy to get on the phone and walk you through my experience and share some resources. Please PM me if you think this would be useful.
Vivek

William Hinz ⋅ Seaford , DE IBM ⋅ 40 years experience

The first thing you need to start and manage a business is a well thought out business plan. My suggestion is to go to www.score.org and ideally request a SCORE Mentor. These mentors are experienced business people who offer free and confidential mentoring to anyone interested in small business. They will help you create a plan for your business and answer many of your questions.