How to Start Your Very Own Tech Enterprise in 2021
Starting up your very own tech enterprise in 2021 all starts with a great idea whether it be a Software as a Service (SaaS), application or service, start by building a minimum viable project (MVP) that the market wants. Test the app with early adapters and make the necessary changes to make it a project market fit.
In this article, we show you the steps on How to Start Your Very Own Tech Enterprise in 2021. Aside from the capital to start your tech enterprise, you’ll also need to meet certain requirements to ensure that your new path to success is secured and legalized.
What Requirements Does Every New Tech Enterprise Have to Meet?
There are many downsides to running a tech enterprise without the right documents. Unregistered enterprises that function online begin handing out penalties by the government, reports MSN. If you are thinking about running a tech enterprise, then you must get these 7 documents sorted out first – you can find more information on the Legal Documents for Every Startup explained in detail from Entreprenuer.com
- Articles of Incorporation.
- Intellectual Property (IP) Assignment Agreement.
- Operating Agreement (Founder’s Agreement)
- Non-Disclosure Agreements.
- Employee Contracts and Offer Letters.
- Shareholder Agreements.
Pick Your Tech Enterprise Structure
Once you have an idea of what kind of enterprise you want, you’ll have to pick the structure of how you are going to run it next. Two structures that stand out are LLC and corporation. Both have advantages and disadvantages.
LLC or Limited Liability Company helps protect you from personal liability in most cases. This means that your assets won’t be at risk in case you get sued. As this is the case, many people consider starting an LLC. The downside to it is that you’ll have to pay self-employment tax. On the other hand, a corporation is a company that’s legally separated from its owners. It offers the best liability of them all. However, they are more expensive and complicated to create.
You also have to consider whether you want to have your own in-house tech resources or outsource your technology needs to agencies.The benefits of in house tech resources means that companies will be able to have more control of the technology. Employees will also understand the inside outs of the company hence why less training will be required. There are also cybersecurity benefits to in-house tech resources over agencies too. Read more on: 3 Benefits of In-House Tech Resources Over Agencies
Despite having benefits for in-house tech resources, the benefits to outsourcing include no need to train new employees and the agencies you outsource will be experts in your field.
Register With The IRS And The Government
As per Business News Daily, it’s important to have your business registered with the government and the IRS. For starters, this entails that your business is legal. It also means that your business is recognized by the government so you are legitimate and you reap the benefits of being a registered entity.
Aside from having your tech enterprise registered as one of the several business structures, there are a few more documents that you need to submit. These are Employer Identification Number (EIN), income tax forms, and depending on where you are, federal, state, local licenses and permits.
Open A Business Bank Account
The last thing you should do is open a business bank account. It’s wrong to have your personal bank account mixed in with what your business makes. You have to keep in mind that it’s not just your money, it’s the money of the entire business so it’s only proper to have a separate account.
Almost all banking institutions allow you to open a bank account for a business. Many benefits come with a business bank account such as better interest rates and higher loan approval ratings. Most importantly, it makes most of the incoming and outgoing transactions easier to manage. Once you open up your business bank account, look into accounting software to keep track of your expenses and income through Quickbooks Enterprise Solutions.
Watch Elon Musk’s tips on how to start a business (Tech enterprise)
How to Start Your Very Own Tech Enterprise Summary
As you can see, running a business is a complicated matter but getting these documents secured is a must. You don’t want to run a business that’s unregistered as you are risking yourself in the process. Moreover, you’re making it harder for people to trust your brand by not having the right permits and licenses.