Unfamiliarity with business set-up and lack of professional help from a reliable CPA firm may feed your fear of starting a small business in Nashville, Tennessee. Potential entrepreneurs, however, do not need to think twice if they have capital, a clear target market, a good business model, a good location, and suitable Nashville CPA support, as the latter can explain and assist in the financial and management sides of the business.
Basics of Small Business Set-up in Tennessee
The Tennessee Department of Economic and Community Development provides seven steps in starting a small business. First, choose a name using the Tennessee Secretary of State Office’s tool, “Business Name Availability.” Second, determine the legal structure of the business, such as Sole Proprietorship or a Company, as the type will determine liability and taxes.
Third, recognize the basic tax obligations of operating the business in Tennessee. Getting a Federal Employer Identification Number (FEIN) is imperative, if the business is a partnership or corporation, or wages are provided to another person other than oneself. The IRS issues the FEIN. The next part is the tax registration for the business. Businesses register with the Tennessee Department of Revenue, which can be done through online tax registration.
Fourth, if the business will hire employees, owners must apply for employee numbers through the Tennessee Department of Labor and Workforce Development. Fifth, owners should check other registrations they would need, depending on their line of business.
Sixth, owners must also refer to other resources that can help them form their businesses, such as checking the website of the Governor’s Office of Diversity Business Enterprise. Finally, owners can download a free copy of the Tennessee Smart Start Guide, which answers questions about insurance and exporting, among others.
Hiring a CPA Firm
Because the provided steps to form your business are merely the “basics,” the Tennessee Department of Economic and Community Development refers owners to consulting CPA firms, apart from lawyers and business counselors. Some Nashville CPA companies also offer business advice, too, specifically on the challenges for small businesses in Tennessee. Keep in mind that a Nashville CPA firm can have expertise, too, in managing sales taxes and accessing skilled human resources.
Starting a small business may seem daunting, but knowing the steps to starting one and hiring a CPA firm can reduce apprehension. Tennessee has a stable economy and a number of large markets that have not yet been fully explored, which translates to huge opportunities for small business owners to begin now and hopefully reap the benefits of financial independence and security in the long run.
Sources:
“How to Start a Business,” Tennessee Department of Economic and Community Development,
“The State of Small Business: Tennessee,” Adam C. Uzialko, July 29, 2016, Business News Daily,
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