Steps to Start a Business

Steps to Start a Business

If you’re thinking about starting a business in Missouri, then you’ve chosen the right place. Missouri has shown remarkable economic performance in recent years, leading the nation in employment and job growth in 2024. Industries that have shown the most growth include healthcare, leisure and hospitality, and construction, according to Missouri Partnership, a public-private economic development organization. In addition, Missouri has a central location in the U.S. and a comprehensive transportation network, and it tries to create a business-friendly environment by:

  • Reducing regulatory burdens
  • Streamlining business processes
  • Supporting innovation and entrepreneurship.

However, starting a new business doesn’t just happen.  There are some important steps to take when starting a business, as well as laws that must be adhered to.  An experienced Missouri business lawyer can provide guidance to make sure everything is done properly and your business starts off on the right foot.

What Are the Steps to Start a Business?

Having a great idea is the first requirement for successfully launching a new enterprise, but it is not the only one. Taking the following steps can get your business off to a good start and prevent headaches later:

  • Consult with professionals. Accountants, business attorneys, and financial advisers provide advice and information for new businesses. These professionals have the experience and information you need to set up a structure to get started and prevent to costly mistakes.
  • Research the market.  Is there a need in your area for the services your business provides?  How strong is the competition?  How many people would be interested in your product, and will it be affordable to them? Evaluate what your business has to offer that can stand up to the competition – for example, a better product, a more favorable price, or better delivery of services. You may wish to utilize surveys, questionnaires, or focus groups to get this information. Assistance is available from the U.S. Small Business Administration (SBA) resource partner network.
  • Come up with a business plan. Write down a detailed plan on how you will get from an idea to a money-making enterprise – how you will structure, run, and grow your new business. Where will your initial funding come from – do you have savings or an investor, or will you a apply for a small business loan?  How long do you think it will take before you will see a profit, and how will you manage until then?
  • Choose a location. Is it easy for customers to find and access your business? Your choice of location must consider costs, zoning, ingress and egress, visibility, and traffic flow. If your business is online, virtual, or does not require customers to come on-site, location is less important.
  • Determine your business structure. A business attorney can help you decide whether you want to set up your business as an LLC, an S-Corporation, a partnership for two or more people to own a business together, or some other business structure. Missouri has six available business types, including limited liability companies and corporations, and the structure you choose has tax and accounting implications and may require filing of creation documents with the Secretary of State.
  • Choose and register your business name.  Choosing a memorable name helps boost your brand and marketing efforts. Make sure you don’t choose a name that is already taken, by checking availability through the Missouri Secretary of State’s database. If the business will operate under a name other than your own or the exact name of the entity, you must register at the Missouri fictitious name registry.
  • Register for federal and state taxes, licenses and permits. Both the federal government and Missouri provide tax IDs in order to collect taxes on your business. Apply for a federal employer identification number at the Internal Revenue Service.  Missouri offers several tax incentives for new businesses to encourage business growth, job creation, and economic development across various industries.

    If state taxes are applicable, register with the Missouri Department of Revenue. For employment taxes, go to the Missouri Department of Labor & Industrial Relations.  You may also need to register for a business license and other necessary permits with some local city or county agencies, especially if your business is a restaurant or construction company, or if required for your specific industry.

  • Get insurance.  If you have employees, check to see if you are required to carry Workers’ Compensation Insurance coverage at Missouri Division of Workers’ Compensation. Some industries require other insurance coverage as well. Having business insurance protects you from the unexpected costs of running a business, such as accidents, natural disasters, and lawsuits. The Fraud and Noncompliance Unit provides answers about other questions regarding coverage requirements.
  • Open a business bank account and set up your accounting system. Set up a separate bank account for your business when you’re ready to start accepting or spending money as your business. You do not want to commingle business funds with your personal finances.

Resources For Starting a New Business.

There are many resources available for helping start your new business. The Small Business Administration (SBA) provides a website that covers all topics you need to launch your small business. In addition, Missouri offers numerous resources for entrepreneurs, including:

  • Missouri Innovation Center (MIC): Provides up to $50,000 in funding for startups with well-defined plans. They offer mentoring, facilities, and equipment support.
  • MOSourceLink: Connects entrepreneurs to over 600 business resources across the state, helping with starting, scaling, and accelerating businesses.
  • Mid-MO Tech Incubator: Offers up to $50,000 in funding, business coaching, and follow-on funding opportunities for tech startups.
  • Missouri IDEA funds  This co-investment program helps start-ups get access to early-stage capital to fund product development, hire critical staff, or commercialize and market your product.
  • Small Business Grant Program: Run by the Missouri Department of Economic Development, this program provides grants to small businesses, with a focus on minority and women-owned businesses. There is also a Small Business Loan Program that provides low-interest or zero-interest loans for business expansion projects and job creation.

Get Legal Advice About How to Start a Business

If you’re thinking about forming a business in Missouri, then a business attorney can be one of your most strategic allies. Understanding state regulations, tax laws, and licensing are all critically important when launching a new enterprise. Attorney Kelvin Birk is a Certified Public Accountant as well as a lawyer, and this combined expertise allows our law firm to provide a level of service above that of other firms. He has decades of experience helping entrepreneurs navigate legal issues for both start-ups and more mature companies and turning a great idea into a successful and thriving business.

Whether you need help with creating a legal business structure, securing licenses and permitting, crafting and reviewing contracts, or creating employment agreements, the skilled and experienced legal team at Birk Law Firm can help. If you have questions, we’d be glad to answer them.

For a free initial consultation, call us at 573-217-6634.

Attorney Kelvin Birk

Attorney Kelvin Birk

Kelvin Birk is a lawyer as well as a certified public accountant, with more than 30 years of experience in accounting and tax and business consulting, and more than 20 years of experience in numerous legal matters. This combined expertise allows our law firm to provide a level of service above that of other firms. Whatever your legal situation, your attorney at Birk Law Firm can counsel you as to the tax implications. We have experience in providing myriad legal representation services to residents of southeast Missouri and other areas.. [ Attorney Bio ]