Start A Business
Start A Business In Ballard County
Looking to start a business in Ballard County, KY? We are here to help you. Our community is growing and the opportunities to start your own business are endless. Below are a few key steps that you need to take in order to become and entrepreneur in Ballard County:
Step 1. Choose an Idea
Step 2. Plan Your Business
Step 3. Form Your Business With The Secretary of State
Step 4. Register for Taxes
Step 5. Open a Bank Account
Step 6. Set Up Accounting
Step 7. Obtain Permits & Licenses
Step 8. Get Insurance
STEP 1 – Choose an Idea
The first step toward business ownership is deciding what kind of business to start. Look for an idea that suits your interests, your personal goals, and your natural abilities. This will help you stay motivated when the going gets tough and will greatly improve your odds of success.required by law to have workers compensation insurance.
STEP 2 – Plan Your Business
Successful businesses are built through careful planning. Before committing a significant amount of money and other resources toward your business, critically analyze your idea and create a game plan. At a minimum, you should have good answers to the following questions.
What problem does your business solve? What will set your product or service apart from the competition?
Sales & Marketing
Who are your potential customers? How will you get their attention and convert them into buyers?
People and Partnerships
What roles will you need to hire and what professional relationships will you need to form in order to succeed?
How many clients or sales will you need in order to break even? How much money will it take to get there, and where will you get the funding?nk and credit card transactions, making accounting fast and easy.
STEP 3 – Form Your Business With The Secretary of State
Registering your company as an Kentucky business entity, such as an LLC or a Corporation, has two major advantages:
- Increased credibility
- Protection from personal liability in the event your business is sued
For most small businesses, registering an LLC is a great option. In comparison to other business entities, LLCs are easier to set up and manage and they have favorable tax treatment. You can set up an LLC in Kentucky for as little as $40.
If you choose not to register your company as a business entity, you will be held personally responsible for the debts and liabilities of your business. In addition, unregistered business owners may need to file a Trade Name, also known as a “DBA.
STEP 4 – Register For Taxes
With limited exceptions, most businesses require a Federal EIN, also known as a Tax ID Number. An EIN is used to identify a business in its federal tax filings. Without an EIN, you can’t hire employees or open a business bank account.
You should also be aware of important Kentucky taxes that may apply to your business:
- If you are selling a physical product, you’ll typically need to register for Kentucky Sales Tax.
- If you hire employees in Kentucky, you will have to register for Unemployment Insurance Tax and Employee Withholding Tax on behalf of your employees.are required by law to have workers compensation insurance.
STEP 5 – Open a Bank Account
Using a dedicated business bank account and credit card for all business-related transactions simplifies accounting and makes your business appear more credible to customers and clients. In addition, if you have registered an LLC or corporation, use of business banking and credit accounts is essential to protect your business’ corporate veil.ers compensation insurance.
STEP 6 – Set Up Accounting
An accounting system helps you track the performance of your business and simplifies annual tax filings. Quality accounting software lets you download your bank and credit card transactions, making accounting fast and easy.
STEP 7 – Obtain Permits and Licenses
To operate your new business legally, you will need to comply with federal, state, and local government regulations. In many cases, this involves obtaining one or more business permits and/or licenses. For example, a restaurant will likely need health permits, building permits, signage permits, etc.
STEP 8 – Purchase Business Insurance
Business insurance helps you manage risks and focus on growing your business. The most common types of business insurance you should consider are:
- General Liability Insurance
- Workers Compensation Insurance
- Professional Liability Insurance
We recommend that all small businesses, including home based businesses, purchase a general liability policy. Businesses selling professional advice or services, such as consulting and accounting firms, should also consider a professional liability policy. In Kentucky, businesses with one or more employees, excluding business owners, are required by law to have workers compensation insurance.