As volatile as the market can be, there is a lot of money to be made in stocks. Many people spend their career buying and trading for major companies, but what if you were to start your own firm from the ground up? It may not be as hard as you think. By taking the right steps, you can have your business started in no time. Here are a few things you can do to start your own firm.
Make a Plan
It may seem like an obvious place to start, but before you do anything make a plan. Sit down and type out or write out all the details of how you want your firm to look, conduct business, and get paid. The more detailed and precise your plan is, the easier it is going to be to bring it to life and the easier it is going to be to find investors and others to give you the backing you are going to need.
The next step is to make your firm a legal entity. You will need an LEI number in US markets for sure, so make that a top priority. Once you have become a legal entity, all the powers that be will know who owns what, who owns whom, what the nature of your business is, and you are on the map for all to know that the business you are going to conduct is legal and within the limits of the law. Becoming an official legal entity helps you to build a good and honest reputation in the financial field.
Let the Tax Man Know
Once you have become legal, you have to register yourself for taxes. When it comes to finances, the government is always watching, and it will take a lot of illegal activity to get around this, and you don’t want to do that. As soon as you are about to get up and running, register with the tax department and pay your taxes and pay them on time in order for you to not face any kind of courtroom drama.
Know Where Your Money Is Going to Go
Now that you have all the important numbers and factors to get to work, you are going to need to find an institution to put the money in. For this main reason, open a business bank account. When you do so, you will also get a business debit card that you can use for purchases, for checking your balance, and for keeping your finances in order. While you are getting the bank all set up, get a business credit card as well. You can pay the credit card right from your business account and you will never have to worry about professional money mixing with personal money. When that happens, things can get very hectic.
Get An Accountant
Don’t try and crunch all of your numbers yourself. It is only going to give you a headache. You are going to be so busy doing other things, you are not going to have the time. When you work with a business accountant, you will find that your money will always be where it’s supposed to be, and you will always be ready for tax time. Accountants ensure that you are not cutting any financial corners that could cause you trouble.
Make Sure You Are Licensed
Don’t get started until you have your license. Any business will need certain permits to conduct certain business, and you will need certain licenses to perform that business. Make sure you also get an occupancy permit for when you set up your office space. That particular permit means that you have met a lot of legal requirements to use the space, and it makes running your business a whole lot easier.
Insure Your Business
Insurance is very important. Insurance helps cover you if there is a loss so that you can bounce back. Insurance also covers anything that happens in your space that could be a detriment. Finally, insurance protects yourself and your employees in the event that there is some kind of accident or fall on the job. Insurance will help you protect you in a lot of cases, and when there is money involved, the more you have liability coverage the better.
There are more things you can do to start your brokerage firm, but this is a good start. Right before opening your doors, think about branding and who your target audience is.