How to Start a Small Business Checklist
Thinking about starting a business in Virginia? Congratulations! To simplify your journey, the team at Arlington BizLaunch has created a small business checklist – a practical, step-by-step guide for anyone starting a business in Virginia. This resource is tailored to the state’s specific requirements and includes everything from business registration to funding, permits, and marketing.
And be sure to schedule a free one-on-one counseling appointment with our Arlington BizLaunch team before you begin to be sure all of your bases are covered.
Use this Starting a Business in VA Checklist to lay the groundwork for long-term success.
Step 1: Research Your Market and Write a Business Plan
Step 2: Fund Your Business
Step 3: Select Your Advisors
Step 4: Learn What Licensing and Tax Requirements Apply to Your Business
Step 5: Draft Your Marketing Plan
Step 6: Launch Your Business
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Every successful business starts with a solid business plan. It provides the foundation for building your new business – from crafting the mission statement, to financial planning, to ensuring your business is in the perfect location.
Conduct Market Research
Understanding your target audience and industry landscape is critical. Use market research tools and consult with local business advisors, like AED’s BizLaunch Consultants, to gain insights into your niche. BizLaunch has curated several free tools that will make doing your research easy.
Then, familiarize yourself with How to Write a Business Plan.
Draft and Refine Your Plan
Writing a business plan isn't as hard as it might sound. There are plenty of free examples available online. Find one that you like, then customize it by plugging in the details relevant to your business model. Here are a few places you can go to find sample plans:
After drafting your business plan, connect with a mentor or consultant. They can offer valuable insights, point out blind spots, strengthen your strategy, and help you steer clear of rookie mistakes.
Looking for support? Both of these services offer mentors and advisors that can help you start your business:
Access to capital is one of the most important steps on your Virginia small business checklist. Whether it's personal savings or SBA loans, identifying the right funding source is key to staying operational during the early stages.
Very few businesses are profitable from the onset, so you’ll likely need financing to keep things moving until you reach profitability.
Some small business owners have their own personal financing or investments from family and friends to get started. Others rely on traditional bank loans or are able to raise venture capital. Research which avenue is best for your business.
Common sources of funding include:
Establishing reliable, stable funding early is critical because there are always unforeseen circumstances that arise. Be sure to have a business nest egg set aside to handle emergencies or other unanticipated challenges.
Running a business comes with plenty of red tape, and expert guidance can make all the difference.
Hiring professionals like an accountant, attorney, and banker may seem costly, but they are valuable investments. Their expertise helps ensure you take each step properly – from determining how much capital you need to choosing the right business structure.
Pro Tip! This isn't the time to hire a friend. Be sure to hire professionals who specialize in your industry or field of business.
Here are a few sources to help you find professional advisors:
In addition to hiring an accountant and lawyer, you’ll also want to find a good insurance agent. Business insurance protects you from things like accidents, lawsuits, and property damage. It’s key to keeping your business and assets safe. A trusted agent can help you figure out the right coverage for your needs.
Overview
a. Vet your business name
b. Learn what licensure or certificates Virginia requires
c. Determine your business structure
d. Register your trade name
e. Apply for an employer identification number
f. Review home-based business requirements
g. Get a commercial occupancy certificate (if applicable)
h. Apply for special permits (if applicable)
i. Get your Arlington business license
j. Understand your tax obligations
Vet Your Business Name
Be sure your business name is distinguishable and available. Search the United States Patent and Trademark Office as well as the State of Virginia’s distinguishable name check to confirm availability.
Learn What Licensure or Certificates Virginia Requires
Visit the Virginia Department of Professional and Occupation Regulation (DPOR) site to find out if your business is regulated by the Commonwealth of Virginia.
Determine Your Business Structure
The business structure you select (i.e. LLC, Partnership, Inc.) will determine how much you pay in taxes, the paperwork you need to file, your personal liability and more. Visit the SBA site to review and compare common business structures and choose your structure in consultation with your lawyer and tax advisor.
Register Your Trade Name
Once you select the one that best suits your needs, apply for your business structure with the State Corporation Commission (SCC). You’ll want to set up your CIS account with the SCC and register your Trade Name. The fee for a Trade Name is $10.
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Apply for an Employer Identification Number
Once you’ve registered your business with the state, your next step is to apply for an Employer Identification Number (EIN) through the IRS.
This number is required to do things like open a business bank account, file federal taxes, and hire employees. Applying for an EIN is free and can be done quickly online through the IRS website. Even if you don’t plan to hire right away, many banks and vendors will ask for your EIN when you set up accounts or services, so it’s a smart step to complete early on.
Review Home-based Business Requirements
Once you have your EIN, you’ll need to determine if your business will be home-based or if you will lease a commercial space. If home-based and you rent or live in a condo, you’ll want to check with your landlord or property management to see if they will allow you to operate your business from home.
If your business is running from home, you will need to apply for a Home Occupation Permit. This costs $55. Be sure to use the same name you used for your SCC application for your Home Occupancy Permit application too. Note that even with a home-based business, you still need to obtain any necessary business licenses and certifications.
Get a Commercial Occupancy Certificate (if Applicable)
If you’re in a commercial space, you will need to apply for a Certificate of Occupancy (CO). Typically, a CO is issued after the commercial buildout is completed. If you are unsure how your commercial space is zoned, check with the BizLaunch team. If you are a childcare center or need special permission to conduct your business in that space, you’ll need a Use Permit.
Apply for Special Permits (if Applicable)
Some of the most common Special Use permits businesses need are Live Event, Outdoor Dining and Signage permits. If you have questions about what permits are applicable to your business, please contact the BizLaunch team for assistance.
Get Your Arlington Business License
Every business in Arlington, Virginia MUST have a valid Arlington business license in order to operate. To apply, contact the Commissioner of Revenue’s Office. This office is where you will set up your license and pay your Business License and Business Tangibles taxes.
Understand Your Tax Obligations
Your Business License Tax is the way you pay for your local taxes, while your Business Tangibles Tax is how you pay for equipment you use in the process of doing business. Both taxes are equally important in avoiding penalties and interest.
Some businesses must also collect Custodial Taxes based on their industry or Retail Sales and Use Taxes based on the goods they sell.
Any business with employees on the payroll has to pay the state an unemployment tax. For more information contact the Virginia Employment Commission, located at 5520 Cherokee Avenue, Suite 100, Alexandria, VA or call 703-813-1300.
Whew! You’ve checked off many important steps from your starting a business in Virginia checklist. Now it’s time to focus on getting the word out.
A strong marketing plan helps define your audience, position your brand, and attract your first customers, making it an essential part of any small business checklist.
This is where marketing comes in. You will need a strong marketing plan to be successful.
A good marketing plan covers the Four Ps:
Product: What you offer.
Position: Where you fit in the market.
Price: How you’ll price competitively.
Promotion: How you’ll reach customers and build loyalty.
Just like with your business plan, it's often easier to find an existing plan and customize it, than it is to start from scratch. Here are a few tips to help you get started:
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Review the key elements of a marketing plan
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Find a sample plan to use as a template (Plan A | Plan B | Plan C)
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Customize the plan to your needs
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Review your marketing plan with your mentor or advisor
Don't forget to include the free marketing and promotional opportunities offered by BizLaunch in your mix.
Congratulations! You've written your business plan, determined your financing, hired professional advisors, investigated tax and licensing requirements and drafted your marketing plan. Now it’s time to launch your business!
We hope this Starting a Business in Virginia Checklist has made your startup journey smoother. For personalized help, schedule a free appointment with our BizLaunch advisors. We’re here to support entrepreneurs and small businesses across Arlington!