Starting a small business is a massive undertaking. Even if your operation only involves working as an independent contractor, there are several things that you will need to bear in mind as you get your business off the ground. While you have very likely considered the apparent necessities like funding and transportation, there are few things that you might not have realized would be necessary so soon into your business endeavor.
You might have thought that insurance is only necessary if you are starting a business with significant amounts of inventory or actual offices. However, even if you are only working as an independent contractor out of your home or on-site, you should definitely look into business insurance.
Many self-employed workers and independent contractors might not feel the need to pay for insurance. The thought is that if you are looking after yourself while on the job, then all will be well. Unfortunately, though, anything can happen. The right business insurance can protect you and your new business against accidents and liability claims. The cost of such insurance from month to month would pale in comparison to the cost of having to handle such things out of pocket.
2. A Strong Website
It is easy to think that your small business can survive on positive word of mouth and recommendations. However, in this day and age, any small business that doesn’t have a reliable website is missing out in a significant way.
The investment that you make into a functional website will more than pay for itself over time. A website that has the right functions and features enabled can even make it easier for you to receive orders and inquiries for potential work. Overall, this is something that you really can’t do without.
3. An EIN
When you decide to go into business for yourself as an independent contractor, you need to obtain an Employer Identification Number (EIN). This is the number that you are assigned by the IRS when you start a business. It essentially operates as your business’s social security number, if you want to think about it in that light. Your EIN will help you keep track of your taxes and keep your personal taxes separate from those of your business. The application for your EIN is free to complete and submit electronically via the IRS website.
4. Legal Advice
Throughout your business, you might find it necessary to seek legal counsel for a specific matter. In such circumstances, you don’t want to be rushing around trying to find a suitable lawyer to consult. It is far better to have the name and information of an attorney that you can trust should the situation arise that you need legal advice.
This person should have experience working with small businesses such as yours and know how to navigate any legal issues that might come up. This is just another way in which you are covering yourself in case of emergencies down the line.