Launching a New Venture

Why the New Year Is the Best Time to Start a Home-Based Business

- James Gilmer, Harbor Compliance

In 2020, the COVID-19 pandemic sparked upward trends both in remote work arrangements and the number of startups registering in the United States. As individuals increasingly turn to entrepreneurship as a source of income in uncertain economic times, 2021 could be a record year for business formations in the United States.

Historically, the beginning of the year has always been a great time to start a new LLC. Whether you’re a new or seasoned entrepreneur, this article will discuss the benefits — and logistics — of starting a new venture at the beginning of the year. We’ll also connect you with resources to start your business from your own home.

Beating the Bureaucracy at the End of the Year

Most entrepreneurs know there’s paperwork involved to form their LLC. Starting a business is exciting, but don’t skimp on your homework here. Taking the right approach will save you lots of time and money down the road.

The exact steps vary in each state and your unique situation. However, every business will generally go through a few key steps:

• File articles of organization with the secretary of state to create your company and establish its name.

• Appoint a registered agent to protect your privacy and avoid receiving legal documents at home or in front of clients.

• File with the IRS to obtain an EIN for your new business.

• Establish organizational record, such as your LLC operating agreement.

• Apply for any state or local tax accounts or licenses needed to do business.