How to Start a $1M/Month Tow Truck Business


April 3, 2024

How to Start a $1M/Month Tow Truck Business

Did you know that 69 million vehicles need to be towed each year?

That’s nearly 190K people who call up a towing business every day.

We talked to Vanice and Vincent Serrano, founders of ASAP Towing, to find out how to start a tow truck business that makes more than $10M each year. They provide insights on how towing services make money, how to hire employees, how to become a tow truck driver, and more.

Tow Truck Business Case Study: ASAP Towing

Vincent grew up working in auto repair shops owned by his dad, but he wanted to have a business to call his own. They already owned a tow truck and had land, so they decided to start a new tow truck company.

The business venture was mostly Vanice and one employee during its first year. About 18 months in, Vincent had to quit his day job and work at ASAP full time because it was making $250K per year.

The local tow truck company offers towing services for breakdowns, lockouts, accidents, impounds, and more. Check out our interview with Vincent and Vanice below.

YouTube player

Learn About the Towing Industry

Before we discuss how to start a towing company, it’s important to learn all about towing and how the industry operates. We’ll discuss:

  • The cost to start a tow truck business
  • The amount towing vehicles makes
  • Industry profit margins
  • Major players
  • Industry outlook
  • Legal requirements
  • How to get a tow truck driver license

How much does it cost to start a tow truck business?

Vincent told us starting your own towing company requires around $10,000 to get a truck, licenses, and towing equipment. We’ll discuss individual costs more in other sections.

How much do tow truck drivers make?

ASAP towing owner gesturing to a webpage about average tow truck driver salaries in the U.S.

As of January 26, 2024, the average salary for a U.S.-based tow truck driver is $44,198, with a range of $38,820–$50,211, and an average hourly rate of $18.54.

You’ll normally want to pay yourself this salary in addition to some profits from the business when you are an owner-operator.

Your location, experience, employer, skills, and education may impact the pay for tow truck driver jobs. Some drivers will also get bonuses and tips.

According to Indeed, the tow truck driver salary is highest in the following cities:

  1. Milwaukee, WI
  2. Sacramento, CA
  3. Los Angeles, CA
  4. Austin, TX
  5. Las Vegas, NV

How much profit can a towing business make?

Towing profit infographic

Transportation businesses normally make 30.59% gross margins and 5.91% net margins. Some people who own towing companies make up to 33.65% profit, which means that the Serranos are likely bringing in somewhere between $700K and $4 million in profits.

Who are the major players in the towing business?

Because many tow truck businesses are privately held companies, it is difficult to find accurate revenue numbers for the largest towing businesses. Along with ASAP Towing, some other large tow truck businesses include:

  • United Road Towing: Dun & Bradstreet (D&B) estimates United Road Towing’s annual revenue to be $99M.
  • Jamie Davis Towing: ZoomInfo estimates annual revenue is under $5M for this towing company.
  • Certified Towing: Revenue is estimated at $1M, according to D&B.

What is the towing industry’s outlook?

IBIS World values the U.S. towing industry at $12.5B and expects it to grow around 2.9% in 2024. They expect it to continue growing at a faster rate after inflation settles down.

Any industry that exceeds the GDP growth in the U.S. is a great one to enter as a business owner.

What are the requirements for a tow company?

Business man in a suit standing in front of a tow truck holding a clipboard with a paper stamped with the word "Requirements"

Before starting a tow truck company, you will need various tools, permits, and licenses. Consult your local small business office, the DMV, or a lawyer who specializes in tow truck businesses.

A tow trucking company will normally need:

  • Drivers with class B driver’s licenses
  • Business structure as a limited liability company (LLC) or corporation
  • Comprehensive auto insurance with uninsured motorist insurance and higher limits than the state minimum (no less than $250K, but $1M is better)
  • Business insurance
  • High physical damage insurance
  • An oversized vehicle permit (depending on what you will be towing)
  • Indictment management permit (if towing without consent)

How to Get a Tow Truck License

To drive a truck with below a 26,000-pound towing capacity, you only need a regular driver’s license. You’ll need a commercial driver’s license (CDL) for anything bigger.

That means you’ll need to take a CDL course, which takes about a month. Then you’ll need to pass the DMV test.

Next, we’ll look at how to start a tow truck business.

How to Start a Tow Truck Business

Starting a tow truck business requires special considerations because of the nature of dealing with vehicular accidents and repossessions. You’ll want to follow the process below to start a successful towing business:

1. Identify your target market.
2. Research local regulations.
3. Create a business plan.
4. Consider a startup loan.
5. Register your business.
6. Get the required licenses and permits.

7. Buy equipment and tools.
8. Develop a marketing strategy.
9. Get liability insurance.
10. Open a business bank account.
11. Provide excellent customer service.

Keep reading to learn how to start a towing business.

Step #1. Identify Your Target Market

RoadsideAmerica.com article on a desktop computer

Tow truck companies use multiple business strategies to bring in revenue. An indispensable strategy is identifying your target market. Potential customers include:

  1. Insurance companies: Companies like AAA and Roadside America need towing and roadside assistance for their customers.
  2. Government agencies: These entities impound cars and need someone to tow them. Not that there may be minimum truck requirements.
  3. Banks and lenders: Repossession services work with banks and lenders. Learn more about repo laws on the American Recovery Agency website.
  4. Motorists: Towing businesses can also work with civilians to tow vehicles when they break down or are otherwise immovable.
  5. Subcontracting: Many businesses outsource their towing needs.
  6. Automotive companies: A towing business might also work with car dealerships and auto auctions to deliver cars to dealerships or customers.

Step #2. Research Local Regulations

Every towing business needs to understand the local, state, and federal laws that the automobile towing industry operates under. Make sure to check the regulations for all levels of government based on the towing services you provide.

A tow truck operator will normally be governed by federal law in two scenarios:

  1. Maximum towing capacity for different types of trucks
  2. Interstate commerce laws, which come into play when commercial vehicles cross state lines

States and local governments will often have laws and regulations that govern the tow truck industry, including minimum tow truck insurance and CDL requirements.

Step #3. Create a Tow Truck Business Plan

You don’t have to write a towing business plan, but it won’t hurt. It will help you keep track of how your towing company is progressing toward its goals. Tow truck business plans should follow a process similar to this:

  1. Find customers.
  2. Get your permits and licenses to drive a tow truck.
  3. Start your company.
  4. Buy a tow truck.
  5. Start towing vehicles.
  6. Follow a marketing plan to take on more work.
  7. Buy more trucks.

Download our business plan template, then check out our interview with Mike Andes on how to write a business plan below:

YouTube player

Step #4. Consider a Startup Loan

Starting a towing business isn’t cheap. With the cost of a flatbed truck, tow truck insurance, commercial auto insurance, and small business insurance, you can expect to spend $10K to start a towing company. Other sites estimate the tow truck business startup cost can range from $62 to $2M.

The Small Business Administration (SBA) offers free courses on financing options and funding programs. For info on using personal funds to start a business, check out this article from The Hartford.

Step #5. Register Your Business

Registering a tow truck business will require you to:

  1. Choose a business name: You’ll want a tow truck business name that is available as a website domain name, social media handle, and registered business name with your secretary of state and the U.S. Patent and Trademark Office. Check domain availability on GoDaddy.
  2. Create a business structure: You’ll want to get either an LLC or a corporation when starting a tow company. You do not want to get a sole proprietorship because it will expose your personal assets to a lawsuit if you get in a wreck with the tow truck.
  3. Apply for an EIN: An employer identification number (EIN) is required to file taxes for business entities on the IRS website. It is also used to associate employee payroll taxes with the correct company.
  4. Acquire a sales tax permit: Most states have a sales tax, and you need to adhere to their requirements. This blog isn’t the place to discuss the permits for all 50 states, but Avalara has a guide on sales tax permits. Check it out.
  5. Labor law posters: All employers must display workplace posters that signal they’re following labor laws. You can download them from the Department of Justice website. You must also follow all hiring laws.
  6. Unemployment Insurance (UI): You’ll have to pay about $420 per employee on a federal level plus any state UI. Check the U.S. Chamber of Commerce for more information.

Step #6. Open a Business Bank Account

Having an open bank account for your business is crucial to keeping your personal finances and tow truck business finances separate. If you have a limited liability company or a corporation, you’ll also need it to get business loans and personal liability protection.

If you have a business bank account, you can also get a business credit card and potentially commercial truck financing.

Step #7. Get Tow Truck Business Insurance

Insurance inquiry form on a laptop

You’ll want a variety of insurance policies when you own tow trucks. You’ll want:

  • Auto liability insurance: covers the vehicle owner if one of their tow truck drivers gets in a wreck
  • Uninsured motorist insurance: covers your flatbed truck and your employee if an uninsured driver hits the vehicle
  • Workers compensation insurance: covers the medical fees and lost work if employees get hurt or killed on the job

When you own tow truck company assets, you’ll also want various types of business insurance, like general liability, a business owner’s policy, and commercial property insurance. Try Simply Business to get quotes from many of the best business insurance companies.

Step #8. Get the Required Licenses and Permits

As stated, tow trucks may require you to apply for additional permits and licenses. We suggest anyone who wants to tow vehicles reach out to a local business law attorney to verify that they have complied with all laws and regulations.

Step #9. Buy Equipment and Tools

One of the major business expenses for a successful towing company is the cost of flatbed trucks for hauling wrecked vehicles. Some of the places you can find the different types of tow trucks include:

Step #10. Develop and Implement a Marketing Strategy

You’ll want to focus on marketing when starting a tow truck business. Vincent suggests using the following marketing for tow trucks:

  • Website
  • Google Ads
  • Instagram and Facebook
  • Videos platforms

Launch a Website

ASAP Towing owner gesturing to a smart phone showing a new towing company website

Creating a website helps people get the information they need about the services you offer, how much they cost, and where your business is located.

Some services you might list on your website include:

  • Roadside assistance
  • Repossession services
  • Impounding and storage
  • Vehicle auctions
  • Heavy-duty towing services

Tow places should optimize their website for search engines for search engines. For example, adding a Google Map location to their website’s footer can help it show up higher on Google.

Vincent told us he has one company that does his videos, another that does search engine optimization, and a third that does social media. You can find all-encompassing services, as well.

Google Ads

Your business budget should include some expenses for advertising on Google. Vincent told us:

We’re spending a little over $1,000 per month on Google right now.

Instagram and Facebook

Vincent told us that he is fairly new to Instagram, but it is starting to provide some returns. He said he has found success on Facebook.

Videos

Like many business owners, Vincent is starting to get into video marketing.

When you start a tow truck business, you can create videos about the common types of calls a tow operator gets. You can also explain how to do things like change a battery, replace a tire, and what to do in an accident—but make sure not to give any legal advice.

How much should a towing business spend on marketing?

ASAP Towing owner pointing to a screenshot of a YEC article on how much business owners should spend on marketing

Established tow truck companies should spend between 2% and 10% of desired revenue on marketing, depending on whether they are marketing their towing business to businesses or consumers. Business-to-consumer companies normally spend more on marketing.

According to entrepreneur Thomas Minieri, new companies should spend up to 20% of their target revenue on marketing to help them grow faster. You will normally want to spend between 15% and 20% of your budget on advertising costs.

Despite the suggestions, many small business owners spend much less on marketing. For instance, both Kenneth and Vanice spend less than 1% of their revenue on marketing.

Step #11. Provide Great Customer Service

Tow companies need to provide great customer service. Whether you’re towing for law enforcement, a business, or people in need of repairs, you should try to be compassionate.

Towing companies often provide emergency roadside assistance, but some partner with other businesses to transport vehicles that are (often unintentionally) parked illegally. When someone gets their car towed, remember they may not have known that their car was parked improperly.

Now that you know how to start a tow truck business, let’s look at some frequently asked questions about the industry.

Frequently Asked Questions

We’ll start with the question on everyone’s mind:

How much do tow trucks cost?

There are a few different types of trucks:

  • Flatbed tow truck for sale
  • Ramp trucks for sale
  • Wrecker truck for sale
  • Integrated tow truck for sale

In most cases, expect to spend $25K or more.

How can I start a successful tow truck business with no money?

Concept of a tow truck owner in an orange vest with a crossed out stack of cash hovering over his shoulder

You have to start somewhere. Kenneth suggested the following solutions:

  1. Can you finance?
  2. Can you get a lease on a truck?
  3. Can you ask friends and family?

He also told us:

I went looking for a loan so I could buy a tow truck and found out that you can’t get a loan to start a business unless you’ve been in business for two years.

I wound up going into it on a lease, rent to own. The truck sold for $50,000. By the time I’m done paying for the truck, it’ll be $106,000.

He went on to say:

The benefit of leasing is you can get into a vehicle with a limited amount of money. The downfall of it is, if you don’t find the right leasing company, you’re gonna be paying them to double whatever the original amount was. So do a little diligence and find out. If they say there’s no puny penalty for prepayment, make sure that the amount is going to be adjusted.

There are more ways to fund a towing company.

Common funding paths include:

  • Personal funds or personal assets
  • A loan from family or friends
  • Funds from a business partner
  • Government programs

The SBA offers free courses on financing options and funding programs. For info on using personal funds to start a business, check out this article from The Hartford.

Running the tow truck company is what you will spend most of your time doing. This includes aspects like hiring employees, helping customers, keeping inventory in stock, accounting, and payroll.

Hiring Tips

Kenneth had a lot to say about hiring drivers. He said the most important aspects of drivers are:

  1. Do they have the required licensing?
  2. Do they stay in communication with the owner?
  3. Do they have mechanical experience, or are they willing to learn?

Without the required licensing, they won’t be able to earn money. But the other aspects are more important to focus on for the bigger picture. Here’s what he had to say about communication:

[An employee is valuable] when they stay in contact with you and they keep you aware of what’s going on with your vehicle. If they’re having any problems, just tell me what your problem is. And I will give you the answer, ’cause my job is to help you.

He also emphasized the importance of being mechanically inclined:

I’ve hired three people in the last month. I had to fire one quick because I explained to ’em, you know, the truck needs maintenance. I can’t be driving 16 hours a day and work on my truck, your truck, and everybody else’s truck.

It’s just not gonna happen. You have to take care of the truck. So, if you don’t know how to be a car mechanic, that probably is a tough spot to begin with.

I’m even willing to teach you what you need to know. I don’t have a problem with that because we succeed together as a team or we fail as a team.

Top Towing Influencers

Find out what other people in the industry are doing:

Conclusion

We’ve covered how to start a tow truck company; now it’s your turn to get the licenses and permits, find some customers, get a truck, and start towing.

If you’ve already started one, what has been the most challenging part of starting an independent towing service?


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According to Backlinko, over a billion hours of YouTube videos are watched each month and successful YouTube channels make $3 to $5 per 1,000 views. If you want to diversify your revenue stream and make some extra cash, you might want to learn how to start a YouTube Channel. We have talked to some of the most successful YouTube (YT) channels to find out how to start a successful YouTube channel. We’ll share advice from: 
  • Cameron Anderson: Blacktail Studio makes more than $15K per month with 1.69 million subscribers and more than 100 million views. He teaches woodworking, sells furniture, and sells detailed instructional videos.
  • Reyes The Entrepreneur: Reyes’ YT channel makes between $15K to $20K per month talking about profitable side hustles. He has nearly half a million followers and 10 million+ views.
  • Serge Belous: UpFlip is one of the fastest growing YouTube channels about starting a business, and I got to pick Serge’s brain about his strategies. We have over 550K subscribers, more than 41 million views and are making $40K to $50K per month with the channel. He’s a private person, so this is a big deal!
We’re going to share their secrets so you can create content that will attract viewers from across the globe and build your authority as a master of your trade. Get ready to learn how to start a YouTube channel and make money.

YouTube Channel Ideas

You’ll need to decide what to talk about before creating a YouTube channel. The YouTube community has successful influencers in every category of content, but some are more profitable than others. A good place to start is by looking at what you’re good at and what you are passionate about. If you own a business, just create video content around your business. There are always opportunities to show what to do and what not to do.  If you don’t own another business, check out some of the video ideas that people watch most.

What is Popular Content on YouTube?

Popular content on YouTube People love watching YouTube content, especially the following categories. If you don’t know what kind of content to create, consider starting a new YT channel about one of these:
  • Shorts (under 30 seconds)
  • Singing
  • Teaching
  • Tutorials
  • Fashion Advice
  • Make-Up Tutorials
  • Cooking Videos
  • Pet Videos
  • Comedy Videos
  • Tech Videos
  • Product Reviews
  • How To Tutorials and Guides
  • Video Game Walkthroughs
  • Vlogs
  • Celebrity Gossips
  • Unboxing Videos
  • Comedy or Sketch Videos
  • Shopping Sprees
  • Prank Videos
  • Parodies
Next, you’ll want to look at what successful YouTubers are doing to produce quality content.

Research What Leading Influencers Are Doing

Screenshot of InfluencerMarketingHub website You have to create quality content to get enough views to qualify as a YouTube Partner. The best way to do that is to establish what the best content creators are doing.  Serge told us: [su_quote]
  1. Find a list of your top competitors by searching subjects in your niche.
  2. Use VidIQ to analyze the topic, volume, and keyword difficulty of the competitors.
  3. Start with low difficulty and work your way to harder ones.
[/su_quote] Find 40 of the best YT Influencers in this blog by Influencer Market Hub. Pay attention to things like their banners, logos, descriptions, titles, and content length.

Create a Customer Avatar

Create a visual that helps you easily remember who you make the videos for. People watch what they enjoy, so if you upload a video that doesn’t interest your target market, it can hurt your channel and receive negative comments.

Make Your Channel Similar––but Unique

You don’t want to copy what someone else is doing, but you want to take notes on what works and find ways to do something similar. Just make sure to let your personality shine through your work.

Step 1. What Makes a Successful YouTube Channel?

  • Be consistent:  Starting a new YouTube channel can be a lot of work. At UpFlip, we have six or more people working on YT to bring you high-quality content.
  • Build a community: People tend to be more attracted to communities than content. Plus, most computer algorithms highly prioritize engagement. Always respond to comments to provide more value.
  • Make a series of videos: Series tend to do well. Use a trick from many successful TV shows and end each episode with a cliffhanger so the viewers want to know what happens in the next episode.
  • Collaborate: Creating videos with other creators helps expose your content to new audiences. Partner up with someone who inspires you. That’s what we did in the video with Blacktail below.
[su_youtube url="https://www.youtube.com/watch?v=DPrnE7MHTRc"] Serge attributes 18,500 new subscribers to this collaboration. 
  • Optimize for search: You’ll need to make sure headings, titles, tags, and thumbnails all have keywords that people will search. That means you’ll need a great tool for YouTube SEO.
Next, we’ll walk you through starting a YouTube channel.

Step 2. How to Start a YouTube Channel

Setting up YouTube to be a content creator is a six-step process. You’ll need to:
  1. Sign in to YouTube.
  2. Create your channel.
  3. Name your channel.
  4. Add a channel description.
  5. Upload a cover photo and profile picture.

How to Make a YouTube Account

Screenshot of YouTube website The first thing you’ll want to do is sign into your YouTube account if you aren’t already. All you have to do is click on the upper right corner where the “Sign In” Button is.  Next, choose which account you want to use. It expects you to have a Google account. If you have one, input the information. Otherwise, select “use another account” and create an account. Screenshot of Google website Next, input your password (current users) or specify whether the account is a personal or business account. You can find more information about signing up for YouTube on Google Support (YouTube is part of Google). It has directions for desktop, iOS apps, and Android. Next, you’ll want to create a YouTube channel.

How to Create a YouTube Channel

Screenshot-of-creating-a-channel-in-Youtube-website For those wondering how to start a YouTube channel from scratch, you can follow this process:
  1. Go to the top right corner and click on the circle for your Google profile.
  2. Click “create a channel.”
Next, it will take you to a screen that asks for your name and picture. We’ll discuss that in the next section.

Name Your YouTube Channel

Screenshot-of-YouTube-website Your new YouTube channel is going to need a name. Do you already have a business name? If so, just use that. If not, think of a name for it. For mine, I’m calling it BB’s Vegas Adventures because I’m getting a GoPro and going to start recording the mischief I get into. The picture below shows the screen. I also uploaded a picture. Mine is silly, but for most people, you’ll want a headshot or a business logo. I’ll describe that more next.

Upload a Profile Picture and Cover Photo

Remember to add a profile picture before you click “Create Channel.”  The photo should be no more than 800 x 800-pixel png, jpeg, or gif (no animations). Check out some of the easy YouTube Photo makers to find one that you like. Here are the photos Reyes The Entrepreneur, UpFlip, and Blacktail Studio use.  Profile picture and cover photo After you’ve uploaded your profile picture, click the “Create YouTube Channel” button. It will take you to a screen that looks like the picture below. Screenshot of YouTube website To edit your banner image, click “Customize Channel” and it will take you to the YouTube Studio. This is where the magic happens. You can adjust the: [su_note note_color="#dbeafc"]
  1. Layout
  2. Branding
  3. Basic information
[/su_note]

Layout

The layout has places to add:
  • A channel trailer for non-subscribers
  • Featured video for returning subscribers
  • Up to 12 Sections
I’ve included a screen recording from Reyes The Entrepreneur channel where he uses both the featured video and 10 sections. Check it out below: [su_youtube url="https://youtu.be/o8YsUONYLw4"]

Branding

The YT Studio Branding tab includes the ability to edit:
  • Your profile picture: The image should be square, bigger than 98 x 98 pixels, less than 4 MB, and png or actionless gif.
  • The banner image: The image needs to be a minimum 2048 (long) x 1152 (high) pixels and no more than 6 MB.
  • The watermark: This will go in videos. It should be 150 x 150 pixels and less than 1 MB. Acceptable files are: PNG, JPEG, GIF (no animations), or BMP.
You’ll want to change the banner image in this section. Check out the three brand banners below. Each takes a different approach but includes the same information: the name of the company and their social media. Notice that UpFlip adds the time we post and our mission in the banner. That helps subscribers know what to expect and when to check it. Which do you like best? YouTube channel banner You might also want to add a watermark to your YT videos. Check out two ways to watermark YT videos.

Add a Channel Description

Next, go to the “Basic Info” tab to add a description, which includes:
  • A place to change the channel name: Be careful about this because you’ll have to update your branding.
  • The description box: It allows a maximum of 1,000 characters. Make sure to do keyword research before writing your description. Keep your keyword density around 1% or 2% to avoid penalties for keyword stuffing. We’ll discuss tools to help with this later in the blog.
  • Links that will be shared with your viewers: Add social media, websites, blogs, etc. You can choose to include the first five links in the banner, so organize them well.
  • Contact Info: Include an email that can be shared publicly with viewers.
The picture below shows the page for you to add a description of your channel. Screenshot of YouTube website The description will show in the section about the channel. The most detailed of the three sections is UpFlip’s. It tells what we do and includes the keywords:
  • Businesses
  • Aspiring entrepreneurs
  • Business secrets
  • Interviews
  • CEOs
  • Entrepreneurs
  • Business owners
  • Your own business
  • Own a company
Then shares information on how to be featured, how to find our services, and how to reach out for sponsorship opportunities. You can see the “About” section of the channel below: Screenshot of YouTube website YouTube channels for kids and YouTube channels for gaming have some specific requirements we need to cover.

How to Start a Kids YouTube Channel

If a younger child wants to start a YouTube channel, you’ll need to assist them because the YouTube kid policies require users to be at least 13 years old, unless they are under a family account. Monetization requires someone to be over 18, and you must follow all local laws. Make sure to review the content policies if you plan to market to kids. Paid product placements are specifically excluded from the YouTube Kids app. Here’s a kid's book on starting a YouTube channel. Make it fun for your whole family: NEED A LINK

How to Start a Gaming YouTube Channel

Gamers share tips and tricks with people on YouTube frequently. YouTube policies specifically mention how to make a YouTube channel for gamers in several sections including the monetization and copyright sections. Check out the list of resources for gaming YouTube videos. Next, it’s time to create your first video.

Step 3. Create Your First YouTube Video

Milenial people making a video recording content Creating new videos will require: [su_note note_color="#dbeafc"]
  1. Getting your equipment
  2. Writing a script
  3. Recording the videos
  4. Editing the videos
[/su_note] Let’s start by looking at the equipment you’ll need before creating your first video.

Get Your Tools

You’ll need to have video equipment, software, and other tools before you can post your first video on your new channel. YouTube channels will typically want to have the following tools to produce quality content:
  • Camera (cell phone is okay at first)
  • Microphone(s)
  • Laptop
  • Photo and video editing software
  • YouTube & Search Engine Keyword Planner
  • Social Blade, analytics software
  • Other social media accounts

Camera and Accessories

Action camera GoPro and accessories on a yellow backgroun Cameron told us: [su_quote] I got to over 700,000 subs with my iPhone. So, it's not about the cameras and all that type of stuff. Just, you know, listening to the analytics, listening to the audience, and making good content. [/su_quote] Meanwhile, Reyes told us: [su_quote] I started with a $50 camera. I upgraded after a while and bought a $200 camera, but I’ve never bought fancy equipment.[/su_quote] You’ll need a camera and accessories for content creation. You can make videos for your own YouTube Channel on a phone or with a computer’s internal webcam, microphone, and the lighting in the space you are recording. That might cause bad audio or video, plus it could require a lot of work in post-production. To make videos that are easy to watch, there are a few ways to go about choosing the right equipment. [su_table responsive="yes" alternate="no" fixed="yes"]
Phone GoPro Desktop/Gaming DSLR Mirrorless
Best for Before Earning Revenue Point of View Videos, Sports, Music Festivals Software Reviews, Gaming Tutorials, Videos without much Movement Will Work for Most Types of Video, Discourage Use for Sports, and Events That Require Press Packages To Shoot With Removable Lenses Will Work for Most Types of Video, Discourage Use for Sports, and Events That Require Press Packages To Shoot With Removable Lenses
Camera Included on phone GoPro Hero10 Black Logitech Brio 4k Webcam Nikon D850 Video Kit Sony A7iii Package
Backup Camera N/A Onscreen Broadcast (OBS) Screen Recording Nikon D850 Lumix G5 Video Package
Lighting Selfie Ring Light GoPro Lighting ( Connects with Media Mod) Lightring Included with Kit
Microphones Media Mod LogiTech Blue Yeti Mic Included with Kit Wireless Lavalier Microphone
Lenses Phone Camera Lens Kit GoPro Max Lense Mod N/A Included with Kit Varies Based on Use Case
Extra Grip Grip for Phone Choose Based on Use Case N/A Included with Kit Ronin S Gimbal
Extra Battery Included With Camera Link N/A Included with Kit Included in the Packages

[/su_table]

Microphone(s)

I would suggest trying your built-in microphone to see if you are satisfied with it first. If you have poor audio There are a ton of different options for mics, but they typically fall into the following categories:
  • Wireless single-direction lapel microphone system: Best for presentations where you need to catch your voice while you are in motion.
  • Cardioid microphone: Great for live music, interviews, streaming, gaming, and more. There are different types, so research which one is best for your needs.
  • Shotgun microphone: Best with DSLR cameras. If you are shooting with a DSLR, consider this type of mic.
Check out this list of 40 sites that help people choose the right mic Let’s discuss laptops next.

Laptop

Laptop on a table YouTube creators use a lot of software that works best on a computer. While you can use a cell phone or tablet, the desktop version works better. Because of that, you might want to buy a laptop. When doing any kind of video or photo editing, you’ll want to consider:
  1. Quality of the screen: Apple Products tend to stay true to color best, but there are screen calibration tools you can use.
  2. Storage space: 1TB+ SSD
  3. RAM: Typically 16 or 32 GB
  4. Video card: 6-8 GB
  5. Software specifications: Check the video editing software you’ll be using.
For instance, here are the specs for Adobe Premiere Pro. Adobe has some of the more resource-intensive requirements for software, so if your computer meets their specs, you might be okay. I have had some success buying computers from Amazon Open-Box Deals for drastically reduced prices. You can skip a more powerful computer if you plan on hiring a video editor to help with your new channel. Next, we’ll look at the photo and video editing software you’ll need when starting a YouTube channel.

Photo & Video Editing Software

If you plan to edit videos yourself, you’ll need post-production software for making videos. At UpFlip, we hired an editor for our video content but specified the requirements for the post-production process. Some popular video editing software includes:
  • Adobe Products
  • DaVinci Resolve
  • CyberLink PowerDirector 
Check out PCMag reviews on editing software.Screenshot of PCMag website

YouTube Keyword Planner & Analytics Software

YouTube analytics tools help you plan content for your YouTube channel, analyze competitor channels, and monitor how your videos are performing on YouTube. This is a must-have when starting a YouTube channel. Check out these tools:
  • Social Blade: Recommended by some YouTubers
  • VidIQ: Preferred by UpFlip
  • Ahrefs: Used for writing and search engines but also has YouTube utilization

Script

Depending on what kind of a channel you are creating, you might want to have a script. UpFlip writes several intros and a list of 40 questions to ask the business owner. We also use a guide that specifies what we have found the viewers enjoy watching and what loses the audience. Cameron told us one of the best suggestions he’s ever heard is to come up with the title and thumbnail first and work from there. That’s especially helpful if you are learning how to start a YouTube channel. For Beginners, you’ll want to simplify the process as much as possible. I definitely think it helps to start with the SEO emphasis and go on to create the rest of the content. I’d suggest looking on Google Trends for the top searches on a topic before you start making videos.

Record

Cameron told us: [su_quote] I just make a video of the build process. Originally, I just did videos on what I was working on at the time. Now, I'm trying to branch out a little bit more. I'm trying to not make the same video 30 times. [/su_quote] UpFlip focuses on providing content the audience wants to watch. We try to keep our answers under 60 seconds, but we focus on creating longer videos because we find it helps with the metrics:
  • Watch time: Total monthly hours viewers spend watching our channel
  • Average view duration: Watch time of each video divided by the number of viewers
  • Clickthrough rate (CTR): People who watch the video divided by the people who were shown the video in search or through or other means
Don’t forget to record several intros and calls-to-action. Remember to ask them to subscribe to your channel, but always wait until after you really add value for your audience. They are more likely to hit the subscribe button then.

Edit Your YouTube Videos

This is a more advanced skill set for YouTube channels. At first, just focus on making useful videos. If you decide to edit them, outsource them. Both Reyes and UpFlip hire freelancers. We prefer using Upwork for our freelancing. Cameron specifically advises cutting out all wasted space. When he sands a new table, he only includes enough to say, ”Next, you want to sand the table.” No one wants to watch a video where someone sands a table for 30 minutes. You’d lose your audience. Keep it to two seconds.

Step 4. Post Content

Now that you have an edited video, you’re just a few clicks away from beginning your YouTube journey. You can post new content from the mobile or desktop app. Just look for the “+” icon in mobile or the camera icon on the desktop app. Mobile and desktop go through slightly different processes. I created a video on how to post a youtube video from your phone. Check it out below: [su_youtube url="https://www.youtube.com/watch?v=fgOeCFktJmk"] The desktop app allows a lot more functionality. When you’re ready to start uploading videos, you’ll want to fill out the following sections:
  • Title: The title is one of the first things people will see. It is also one of the primary factors that impact SEO and visibility. It should include the target keyword or a variation of it. Titles are best at 70 -100 characters.
  • Thumbnail: The thumbnail is the cover photo for the video. Under 50 characters works best and A/B testing should be used to determine which works best on YouTube.
  • Description: The video description should start by telling the viewers what they are going to see in the first 200 characters, then include other information that further explains the video like links and  timestamps. Include relevant keywords and mention any sponsored content.
  • Music copyright information: Each YouTube channel needs to create unique content. If the AI detects copyrighted material, it will flag the content and give the revenue to the copyright owner. To avoid this, carefully review YouTube’s copyright terms and conditions.
  • Make your video shareable: Only public videos will be eligible for revenue and the more shares you have, the more people who can see it. Make sure to allow and encourage sharing of your YouTube content.
  • Allow comments: Algorithms use comments to establish whether people are interested in the material. The more meaningful engagement, the better the channel is likely to do among the target audience.
  • Relevant tags and hashtags: Hashtags in a description are a great way to see how your video is doing. They also help viewers find other videos on similar subjects. Check out this example for #cleaningbusiness. Meanwhile, tags are the basic building blocks for how YouTube indexes your video. Include all meaningful searches that you want your video to come up during. There is a maximum of 500 characters in the tag box, and only three tags can be shown above the title of the video.
Example: If this blog were a YouTube video, I would use the following: [su_table responsive="yes" alternate="no" fixed="yes"]
Tags  Hashtags
How to start a youtube channel #HowToStartAYouTubeChannel
How to start a youtube channel for beginners #CreateAYouTubeChannel
how to start a youtube channel and make money #StartingAYouTubeChannel
How to start a youtube channel for kids
How to start a successful youtube channel
How to start a gaming youtube channel
How to start a youtube channel from scratch
Starting a youtube channel
How to make youtube channel
Create youtube channel
[/su_table] Follow other YouTubers in your niche to establish what they are doing well and how you can add more value for your target audience. Creating content is all about which channels satisfy their audiences’ needs best.

Step 5. Share to Social Media

Sharing to social media can be as simple as posting the link and a description about the YouTube videos, or you can upload videos that are teaser clips for your YouTube videos. Cameron told us: [su_quote] What most YouTube creators do is they use that content, and they chop that up and repurpose it on Instagram, Facebook, and places like that. [/su_quote] Screenshot of Instagram website Meanwhile, UpFlip approaches sharing the YouTube Channel on Instagram, by posting the thumbnail and a description, then linking to the YouTube in the profile. Serge told us:  [su_quote] I would also highly suggest joining relevant Facebook communities and posting your videos there, NOT to spam, but to add value. [/su_quote]

Respond to Comments

Cameron loves responding to comments. He told us: [su_quote] It's a focus group. People spend millions and millions of dollars on focus groups, you know, these big businesses, and this is my focus group. [/su_quote] Your YouTube journey is a learning opportunity. If you get positive comments, thank them and note that the audience appreciated certain things. If you get negative comments, try to help satisfy your audience and learn about what they didn’t like. Both scenarios are a chance to connect with new viewers and gain insight into what people expect. We asked Serge about comments, and he told us: [su_quote] Reply to comments that come in within the first 24 to 48 hours of your video going live. This allows you to cultivate an active community. [/su_quote] Serge went on to discuss how to use comments in Facebook groups: [su_quote] Always try to add value, otherwise you'll be quickly banned, that's what we did starting out. If someone has a question about starting a type of business, we'll answer their question and suggest watching our video. [/su_quote] Let’s look at ways to optimize your channel and content after you upload a video.

Step 6. Optimize and Grow

Laptop, tablet, and office supplies on table There are a ton of ways to optimize your content after you upload a video, including:
  • Create formulas
  • Study YouTube Analytics
  • Buy YouTube ads 
  • Use other ad platforms
  • Improve SEO
  • Use the Community tab to improve engagement.
Serge told us:  [su_quote] I would also highly suggest joining relevant Facebook communities and posting your videos there, NOT to spam, but to add value. [/su_quote] We’ll discuss each.

Create a Formula with Templates 

You can create elements in YouTube Studio to make end screens and cards easy to add to your videos. If you find that one template gets people to subscribe better than another, add it to other videos.

YouTube Analytics

Screenshot of YouTube website Use YouTube Analytics to establish: [su_note note_color="#dbeafc"]
  • Best and worst performing videos
  • Average view duration of each video
  • Traffic source 
  • Type of device
  • CTR
[/su_note] Learn about the expanded analytics reports to find your gems.  Cameron told us: [su_quote] I'm a sucker for YouTube analytics. I do AB testing of thumbnails and titles, and it has made a massive difference in the success of my videos. I know you guys do a little bit of that too. [/su_quote] Serge agrees but suggests using additional software. He told us: [su_quote]Master your thumbnails. It's crucial if you want to be over 10% CTR, which is very hard to do. Our average CTR is above 5%, and we still have a long way to go. Your thumbnail should convey just one idea. Use vivid colors. Test different thumbnails by using the TubeBuddy feature. Make them curious. Your thumbnails should tell a story, it should be simple, bright, and contrastive. You need to stand out from the rest. [/su_quote]

YouTube Ads

Screenshot of Influencer Marketing Hub website If you really want to speed up the process, you can use paid ads on YouTube to connect with potential viewers. This is a high-cost way of getting viewers, but it can pay off if you are confident that your content is amazing. You’ll be spending around $2,000 for 100,000 ad views though.

Other Ads

You can also use ads on social media, Google, or Bing, but all of these are highly saturated, and you might spend a lot of money. Most truly successful YouTubers focus on SEO and engagement to help YouTube start generating revenue.

SEO Optimization

This is the aspect that all of the people we interviewed agree makes a huge difference. YouTube is actually considered a search engine, so anything you know about optimizing for Google, should apply to YouTube. That doesn’t mean it will be the exact same, though. There are three ways to get organic traffic from YouTube internally:
  1. Search: Uses search engine optimization. You’ll want to focus on this method when you first start.
  2. Browse: Helps improve the visibility of your videos in the browsing functions of YouTube based on hashtags, tags, and other indicators.
  3. Suggested: Helps to improve rankings in suggested videos.
Serge told us: [su_quote] We’re not focusing on “search” traffic but on “browse” and “suggested,” but the only way this would work is if you have high retention and high CTR. [/su_quote] He also suggested checking out these videos to learn more about how YouTube works:

Community Tab

All three of our featured YouTube channels use the community tab. This is where you can share surveys, other posts, and announcements. Each takes a different approach. Check out the overview of each below: [su_table responsive="yes" alternate="no" fixed="yes"]
Blacktail Studio UpFlip Reyes The Entrepreneur
Posts about once per month Posts most days Posts daily
Gathers AMA questions 2–3 surveys per week Mostly sharing videos 
Shares goals and requests help  Shares podcasts & blogs Low comment volume
High volume comments on each Giveaways Seems this aspect is an afterthought
Volume of comments varies, but monthly comments exceed Blacktail
Encourages discussions
[/su_table]

Step 7. How to Start a YouTube Channel and Make Money

Youtube logo with money word on scrabble tiles You’re here because you want to know how to start a YouTube channel and get paid. Good news! There are a lot of ways to make money on YouTube. The most common ways to earn revenue on YouTube are:
  1. Affiliate Marketing: Refer people to products you love and get a commission. Some you can start immediately.
  2. Outbound Links to Websites: Send people to your website to purchase products and services. Some features are available when you start your YouTube account, but there are YouTube Partner features as well.
  3. Sponsorships: Add in paid promos and get paid for marketing to your subscribers. 
  4. Become a YouTube Partner: Meet YouTube's 4,000 hours of watch time and 1,000 subscribers requirements, plus some other guidelines. Follow the monetization process in the link above.
Cameron told us: [su_quote] They always say to diversify your investments, but nobody talks about diversifying your income. You lose your job, you lose 100% of your income. [/su_quote] Reyes told us: [su_quote] YouTube is between $7 and $10 thousand, affiliate links are $2 to $5 thousand, and the new one, sponsorships are $1 to $5K. [/su_quote] Take his advice and keep reading about the different ways to make money on YouTube.

Affiliate Marketing

One of the ways that any successful YouTube channel will make money is through affiliate marketing. In your videos, you might use a tool or mention software that you find useful. If you are using it, your viewers will probably want to know where to get it. So provide them an affiliate link that makes it easy for them to buy the product and earns you between 1% and 25% commission. Cameron used to be nervous about using affiliate links, but he learned it saves him time and his audience appreciates it. He told us: [su_quote] They don't see it as an ad. They see it as a service. [/su_quote] Reyes loves his affiliate links. Check out all of the ones in one of his top YouTube videos. At UpFlip, we limit the number of affiliate links we use to only the essentials. Many videos only include the link to our sponsor as paid promotion, but we typically include around seven affiliate links in the blogs. There are eight main affiliate marketing websites you should join, but if you search “company name affiliate” you can normally quickly find where to apply easily.

Outbound Links to Website

Always link your YouTube Channels to your website and other similar videos you think your audience will appreciate. You’ll want to include links in several places like:
  1. Your banner
  2. Your channel’s “about” section
  3. At the end of each video
  4. In each video’s description
    1. Social links
    2. Home Page
    3. Relevant Content
Check out our interview with Reyes for more great information on how to make a YouTube video. [su_youtube url="https://www.youtube.com/watch?v=Dg-ymfCpYcQ&t=128s"]

Sponsorships

Cameron gave us some great advice about sponsorships: [su_quote] (Be) careful about the sponsors you take. I took a shady sponsor…my views and everything just tanked.  It took me like a year to get back to where I was. [/su_quote] As you can tell, we take this to heart and only accept sponsors and partnerships that are highly rated, business-oriented, and useful for YouTube video viewers. Make sure to review YouTube’s sponsorship guidelines. You can’t accept these if you want to be in the YouTube kids app.

How to Charge YouTube Video Sponsors

The industry uses CPM to charge for sponsorships. First, find the average views for your last 10 videos and divide by 10. Next, multiply the views by twice your Cost per 1,000 Impressions (CPM). The industry standard formula will work like the following example:
  • Average View Count: 218K
  • Average CPM: $33.18  
Charging your sponsorships steps During the early stages of acquiring sponsorships, you can multiply the CPM by 1.5  in Step 2 to give companies more incentive to invest in sponsoring you.

Become a YouTube Partner

This is where a lot of the real money from YouTube channels gets generated. When you become a YouTube Partner, a lot of opportunities open up that smaller channels don’t have. We’ll share the requirements to become a YouTube Partner, how to opt-in for monetization, and the Partner money making tools that are only available once you opt in.

Requirements

There are six requirements to be an eligible YouTube Partner Channel. They are:
  1. Follow the monetization rules
  2. Live in an eligible country
  3. No active strikes on your YouTube account
  4. 1,000 subscribers
  5. 4,000 public watch hours
  6. Linked AdSense Account
As long as you meet these requirements you get to join the YouTube community that gets paid for creating videos, but you have to actually apply if you want your YouTube channel to participate.

Opt-In

To opt-in and make money off the ads your viewers watch, you have to add 2-Step verification to your Google account (if you haven’t already). Next, go to the monetization tab in YouTube Studio. It will tell you if you’re eligible. If you aren’t, you can ask for an email notification when you are. Go ahead and ask it to notify you while you’re familiarizing yourself with starting a YouTube channel.   You’ll also need an Adsense account. Go ahead and get an Adsense account if you don’t have one. Your YouTube channel will automatically go into the queue when you’ve met all the requirements. Let’s look at the ways YouTube Partners can make money on the platform.

Options

Once your YouTube journey reaches this stage, you should have figured out how to create video content that people will watch. So YouTube gives you a lot of ways to earn more from your video including: [su_note note_color="#dbeafc"]
  • YouTube Ads 
  • Channel Memberships
  • Merchandise
  • Super Stickers and Super Chat
  • YouTube Premium
  • YouTube Short Funds
[/su_note] Let’s look at how you make money with each of these.

YouTube Ads 

YouTube shares a percentage of ad revenue with the Partners making videos. Most content creators will receive somewhere between $3 and $5 per thousand views (CPM) depending on the number of ads watched during channel videos. That's why longer videos are so important. Serge told us: [su_quote] Our average CPM is $29. [/su_quote] That’s six times the average. Keep reading because we’re going to share a secret that hurts other creators’ CPM.

Channel Memberships

Screenshot-of-Youtube-website Content creators can offer memberships to their audience like:
  • Contests and giveaways
  • 1-on-1 meetings
  • Member-only videos
These increase excitement and reward the audience for being loyal viewers of their YouTube videos. Check out more about the memberships

Merchandise

You can sell merchandise through YouTube videos without becoming a partner, but you have to send them off-site. As a YouTube partner, your channel can sell your merchandise directly on YouTube! The bar is a little higher, but it can be an easy way to provide products seen in your videos. You’ll need 10K subscribers before you can connect shopping items directly in your YouTube videos. You can even have different products in Your channel store and video store. Find out more.

Super Stickers and Super Chat

A content creator can allow super stickers on their videos. This can be a great tool combined with sponsored content because Super Stickers allow the audience to pay to pin their comment on the top of the thread. If your sponsor wants to guarantee their comment is seen, they can renew it as needed. Plus you get 70% of revenue from the Super Stickers. Check out the YouTube guide on stickers.

YouTube Premium Revenue Share

Partners share a percentage of the Premium memberships, too. It helps increase your view time, plus they can download your content to listen to or view it anywhere. All partners share a percentage of the revenue based on their total view time. So if your audience pays for YouTube Premium, don’t forget to remind them to download your videos so they can listen to them on road trips. Here are the details on YT Premium. Screenshot-of-YouTube-website If you create content that is really short, you’ll love the YouTube Channel ideas to make money on short clips.

YouTube Short Funds

Starting a YouTube Channel can be a lot of fun. If your audience is for funny videos, you can submit YouTube shorts. This is a chance to reach an audience similar to TikTok’s audience. You just upload a video under 30 seconds from your phone and it qualifies for revenue from the $100 million shorts fund. Learn more about shorts. These are great for a new channel or a video channel that has a low retention rate, but Serge warns against these if your channel is doing really well. Here's what he has to say: [su_quote] I don't believe in this strategy. I know a few of big business channels that are big on shorts and they get millions of views, but they attract a random audience that destroys their retention rate. Their actual long form videos get a fraction of the views (that we do) and they don't even make 1/3rd of what we do with our channel. They're big on TikTok videos as well.  Our goal is to attract the right audience, an audience that will watch and interact with everything that we put out. What's the point of having 2M subs and getting a fraction of views as most channels this size get? [/su_quote]

What Success on YouTube Looks Like

Everyone has different ways they approach their channel. From channel art to asking people to subscribe, plan ahead when you create your first video. It doesn’t matter if you have a camera or phone with bad audio. Hit the upload button and start finding new viewers today.  As you grow, you can invest in audio and video equipment. But like Reyes The Entrepreneur said: [su_quote] Why buy a new camera? If it’s not broken, don’t fix it. [/su_quote] What aspects of audio and video recordings for YouTube would you like to hear more about?
Want to know how to earn up to 14% on your holdings with business banking? We’re going to show you how, plus all the other considerations you’ll have when you open a  business bank account. We'll help you understand why you should open a business bank account, what you need to open a business checking account for each type of business structure, how to choose the right bank account for your business, and introduce you to some of the best business bank accounts. Once you are done with this article you should be ready to open a business bank account online. Let's start with the reasons you'll want a business bank account.

Step 1. Reasons for starting a business bank account

You'll want to open a business bank account for the following reasons:
  1. Separate your business and personal finances
  2. Easier tax filings
  3. Customer purchase protection
  4. Build small business credit
  5. Develop a relationship for better banking services
We'll look at each of them to help you better understand how they impact business.

Separate your business and personal finances

You need to have separate personal and business accounts If you are running a: C-Corporation, Non-Profit Organization, or other business structures that are considered a separate entity, . If you do not, it is possible for courts to consider the business and yourself the same entity. If you'd like to learn more on that, read about 8 case studies that pierced the corporate veil. Keep reading for more benefits of opening a business bank account.

Easier tax filings

Another benefit of opening a business bank account is that it makes filing taxes easier. I've made the mistake of keeping my business funds in my personal checking account, and it makes finding all my earnings and expenses nearly impossible. The ease of tax filings is probably the best reason to open a business bank account. Keep reading for other reasons to open a business bank account.

Customer purchase protection

Business bank accounts have additional features that personal checking accounts do not offer. One type of business bank account that people can open is a merchant account. A merchant account will issue customer refunds even if you don't have the money in your business checking account to cover it. A good refund process helps improve your experience when a customer doesn't get the product, the charge was fraudulent, or the product was defective. It will charge the company a chargeback fee and can raise processing rates if there are too many. Check out the blog about chargebacks to learn more

Build small business credit

Multicolor doodle sketch on notebook A small business checking account can be a stepping stone to lines of credit for small businesses. If you have a business checking account, your business can qualify for Net-30 vendor loans that will start to build your small business credit score. In addition, the bank will be monitoring your account to see what services they think would be good for your business. If you receive an email or mail from your bank inviting your business to apply for a credit card, line of credit, or other services, that probably means you'll qualify. Keep reading for another benefit of opening a business checking account.

Develop a relationship for better banking services

Opening a business bank account accomplishes two major business goals:
  1. Develop a relationship with a preferred lender.
  2. Develop personal relationships.
The two of these go hand in hand. It's normally better to interact with a bank before asking it for a loan. While they will attempt to work with you, they will work harder for you if they like you. My sister and her fiance have an extraordinarily high success rate in home offers and finances because of how they manage the human aspect of the business. The same can go for banks. In addition, you never know who you'll meet in a bank. Relationships are crucial to getting ahead in business, and financial contacts are some of the best to have. They understand their business better than most and know how to break it down so it makes cents (pun intended). Go into the bank and be friendly with the people waiting in line and those helping you. Make sure to have business cards on you. I have gotten customers this way. You can too! Those are the reasons to open a business bank account. Let's look at what you need to open a business bank account online or in person.

Step 2. What do I need to open a business bank account?

There are normally three requirements to open a business bank account. The most common business bank account requirements are:
  1. Proof of your identity
  2. Business documents
  3. The minimum funds to start a business bank account
Let's start by looking at the personal documentation.

What personal documentation is required to open a business bank account?

A lady filling out personal information online Like a personal checking account, setting up a business bank account will normally require two to three forms of personal identification. Credit and debit cards normally work at banks in Nevada, Michigan, Florida, and Texas. You'll have to check with the individual bank in other states. You'll need to provide or know:
  • Your name, birthday, and social security number
  • Contact information including address
  • Proof of ownership percentage
  • A government-issued photo ID, such as a driver’s license or passport
In addition, you'll need documentation of the business as you gather what you need to open a business bank account.

What documents are required to open a business bank account?

When wondering how to open a business bank account, you'll have to get your business documents ready. If you haven't already chosen a business structure, applied for an EIN, and registered your business license, you'll need to do those first. We'll cover what you need to have when opening a business checking account for:
  • Sole proprietors
  • Limited Liability Companies
  • Corporations
  • Partnerships
Check out our how to build a business article if you haven't already started your business.

Sole Proprietorship or DBA Checking Account

Most business checking accounts will require the following documents before they will allow you to open an account for a sole proprietorship:
  • Business name and DBA if applicable
  • Business location address
  • Employer identification number, or EIN (Some banks will let you use your social security number.)
  • Industry of business
  • Business name registration certificate
  • Business license

Can I open a business bank account without an EIN?

Whether you can open a small business checking account without an employer identification number depends on the financial institution if the account is for a sole proprietorship or single-member LLC. You don't need an employer identification number unless you are hiring employees because the business income is considered the owner's personal income. If you are opening other types of businesses, you will need an employer identification number, especially for corporations because the owner counts as an employee. Next, let's look at what most business bank accounts require for limited liability companies.

Open Bank Accounts for LLC

A lady holding a white iPad and a pen Limited liability companies will need the following documents when applying for a business account:
  • Business address.
  • Employer identification number. If it is a single-member LLC, some banks will let you use your social security number.
  • Industry or type of business.
  • Articles of organization, LLC operating agreement, and business license.
  • Multi-member LLCs will need the personal information of all owners that own over 25% of the company. Bank of America has a useful guide by zip code of what you need for each type of business. Check your area at the bottom of the page.
Keep reading for what is needed for an incorporated bank account.

Opening Bank Accounts for Corporations

Corporations will need some unique documents, primarily the articles of incorporation and corporate bylaws. Small business owners will need to provide a variety of business documentation to open a corporate account. The most common documents are:
  • Business address
  • Employer identification number, or EIN
  • Industry or type of business
  • Articles of incorporation, corporate bylaws, and a business license
Because a C-corp is a separate legal entity from the people involved, it is necessary to receive payments and pay vendors from a business checking account. If you mix personal funds with business funds, you risk nullifying the liability protection of the business. Keep reading to learn how to get a business account for a partnership.

Open Bank Accounts for Partnerships

Partnerships will need the following documentation when opening business bank accounts:
  • Personal information for all partners with 25% ownership or more
  • Business name and DBA or trade name (if applicable).
  • Business address.
  • Employer identification number, or EIN. (Sole proprietors and single-member LLCs may be able to use their social security number).
  • Entity type and industry/type of business.
  • The partnership agreement, business name registration certificate, business license, and state certificate of partnership.
Now that you understand what documents you need to open a business bank account, let's look at the features and types of small business bank accounts.

Step 3. Choosing the type of business bank account you want

A white notebook with colored pens on a pink desk Before discussing how to start a business bank account, we should discuss the features and types of accounts that are available to small businesses. There are four main types of accounts:
  1. Business checking account
  2. Business savings account
  3. Merchant Account
  4. Credit Card Account
Let's start by looking at features.

Features of business bank accounts

When choosing an account, be sure to consider the following questions and how important they are to you: [su_note note_color="#dbeafc"]
  • Is there a monthly fee? If so, how much per month?
  • What are the minimum balance requirements?
  • Are there limits or transaction fees on withdrawals, deposits, or other transactions?
  • Is there ATM access and what are the limits on it?
  • What wiring, transfer, and payment capabilities are available? How often will you use them, and are there restrictions or fees for those financial services?
  • What are the incidental fees for items like stop payment, nonsufficient funds, and overdrafts? This item is really important because cash flow can be unpredictable during the early stages of a company and during certain times of the year.
  • What online and mobile banking features are available? App? Mobile check deposit?
  • Do they have additional features that matter to you like automatic bill pay and invoicing?
  • How easy are integrations with other business tools? Warning: online banks like Varo and Chime have some great personal interest rates, but they often poorly integrate with Plaid, which is a common way of connecting banks to other platforms. Be careful with strictly online banks.
  • What money management tools does the bank offer?
  • What are the interest rates? Are the interest rates tiered?
  • What are the rates and perks on their credit card accounts? Are business credit cards better than personal accounts?
  • Are personal bank accounts better for your needs? If so, pass-through income businesses can open a separate checking account and use a personal bank account with a separate.
  • payment processor
  • Where is the nearest bank branch to you or your business? This will matter if you accept cash or cards.
[/su_note] Now that you know some of the considerations when choosing an account, let's look at the main types of accounts.

Why You Should  Open a Business Checking Account

A man writing on a check I'm assuming anyone who is a business owner has opened a personal checking account before. A business entity can get a checking account with similar features. They are virtually the same thing, but you can add merchant services, employee business debit card purchases, and integrations with other companies' software on a business account that you cannot add on a personal checking account.

Reasons for Opening Business Savings Account

A business savings account is intended for long-term savings. A savings account for business may have higher interest and higher minimum business deposit balances than personal savings. The Federal Reserve suspended Regulation D requirements of six or fewer transactions in a statement cycle during the pandemic, but at some point will probably reenact them. You can use the savings account to:
  • Earn interest
  • Save business profits
  • Transfer your earnings on a weekly basis
  • Save for major business purchases
  • Overdraft protection
  • Save for taxes
Let's look at a special type of business account that is for handling credit card payments.

Consider Opening a Merchant Account

A merchant account is sometimes referred to as merchant services. Merchant services are a special type of account that can be used to accept credit card payments for businesses. You'll need a business checking account to open merchant accounts. These services are often comparable to Paypal or Stripe business credit card processing, but will vary in four primary ways:
  1. Typically, Paypal and Stripe offer more features than merchant services.
  2. Merchant services will normally have fewer transaction fees than Paypal or Stripe.
  3. Merchant services will normally have tiers where higher transaction volumes (in a number of transactions or dollars per month) come with lower transaction fees.
  4. Merchant services may require a credit check, while Paypal and Stripe do not.

Step 4. Which bank is best for business accounts?

Choosing the best bank for business is a matter of personal preference. Instead of telling you which ones are best, I think it makes sense to tell which ones are best at a certain aspect of banking. Honestly, all the choices are bad. You can either have:
  • A truly free account with no monthly maintenance fee and not be able to deposit cash easily
  • Cash payments at a physical location and a monthly maintenance fee
  • You have to choose between the two unless you plan to have $5k-100k sitting around at all times, which I hope you don’t because that should be earning interest.
Because of the trade-offs that business bank accounts require, my suggestions are going to be way different than normal.

Lending Club

The Lending Club website LendingClub is probably the best of the options I've seen if you are comfortable with handling everything related to your account online. It's about as close to what the legacy banking system offers, but with online banking pricing fees. Unfortunately, you don't have a bank branch near you, but the costs are far less than most legacy banks.

Novo

Novo is an online bank with no monthly fee, no minimum balances, seamless integration to all the major sales platforms, and $5,000 in discounts for small business owners to use with other apps like Google Ads, Gusto, and Snapchat. No physical locations for cash deposits.

BlueVine

BlueVine is another great candidate for online banking with a .6% interest rate on accounts under $100K, and easy lines of credit as long as you have six months in business, $10K/month revenue, and a 600 or higher credit score.

Your local credit union

You should bank with your local credit union if you have to pay a bank $10-$35 per month and haves:
  • Additional fees every time you deposit more than $10,000 per month
  • Additional fees if you have more than 50-350 transactions per month
  • 0% interest earned on checking accounts
  • 0.01% interest earned on funds in savings accounts
At least going with a local credit union keeps the profit in your hometown or state. With the major banks, the profit is going straight to the CEO, Berkshire Hathaway, and Blackrock Inc.

Big Banks

I'm required to mention Business Advantage from Bank of America for SEO purposes because it is the best of the worst business account offerings. You have to keep $5,000 in the account at all times or pay $16 a month. Bank of America Business Advantage You can also earn up to $.04% on $250,000 over the course of a year. That's $100 interest for letting them loan the money to other people. Super awesome! Seriously though. Stay away from the big banks.

Crypto.com

 I can make $100 in interest on $1,666.67 in a year. On $250,000, I can make $25K interest. They have debit cards and payment processors too.  Use an online bank for checking accounts and crypto.com Flexible USDC or USDT accounts for savings. They pay up to 14% depending on how much you hold in their coin CRO and how long you lock it up. They offer flexible, 1-month, and 3-month terms.   You'll make way more money off the money you leave sitting around.

Conclusion

Honestly, I'm torn between wanting the service that can only be given with in-person interactions and the far better value of online financial companies. If you are too, I suggest you remember that the legal responsibility of a company is to make its owners money and go with an online bank. This article has explained how to open a small business bank account, the types of accounts available, and some of the better options available. Where did you decide to get your bank account, and are there any we should feature when we update this post?
Have you always wanted to start a business, but felt like you couldn't afford the startup costs? We'll show you how to start a business with no money. Upflip is here to help you. We're going to walk you through the steps of how to start a business with no money. We'll share some of the business ideas that Paul Akers from Fast Cap and Mike Andes of Augusta Lawn Care Services see as great opportunities. In addition, we'll share information with you from Russell, an 18-year-old making over $100k/year by starting Legends Lawn Care Services. He started with $2,000 and explains how you can do it with less. We'll cover the following aspects about how to start a business without money:
  1. Coming up Small Business Ideas
  2. Market Research
  3. Business Plan
  4. Funding
  5. Name the Business
  6. Structure the Business
  7. Preparing for Opening Day
  8. Tips on how to start a business without money
Keep reading to learn how to become an entrepreneur with no money.

Step 1: Come up with Small Business Ideas

You know "I want to start a small business, but have no money." Small business ideas can come from anywhere. Some of the best ways to come up with business ideas include:
  • Looking at what other industries do and how it can be applied to yours.
  • Looking at what other countries do and how it can be applied to yours.
  • Observing a problem and finding a way to solve it.
Let's look at each.

Look at what other industries do

A white notebook and a cup of coffee on a desk Paul told us some of the products he sells came from other industries. Here are a couple of products that crossed from one industry to another. [su_quote]We have a product called the GlueBot. I took something from the food industry and moved it over to the woodworking industry. Today that’s one of the best products we sell.[/su_quote] [su_quote]CruisinCap was another product like that. I spilled my coffee on myself and went inside grabbed a Fast Cap and it kept my coffee from spilling. that's how CruisinCap was built.[/su_quote] CruisinCap sells billions of pieces worldwide. What business ideas could you solve with this type of thinking?

Look at what other countries do

Different cultures approach business ideas differently. When you travel, take note of what you see in the other places and consider how you can bring it back home. Paul told us about his travels to Japan: [su_quote]When I go to Japan, I’m very observant of what the Japanese are doing because the Japanese are very clever people, very resourceful people.[/su_quote] He went on to tell us about one of the products that he really loves out there, hot coffee vending machines. They bottle their coffee and keep it hot in the vending machine. That way you can have a hot coffee straight from a vending machine.

Observe a problem and solve it.

Paul discusses how he comes up with the business idea for Fast Cap in his interview. [su_quote]I came up with a situation as a cabinet maker where I was trying to cover a screw hole inside of the cabinet and the existing technology was plunky and difficult. I came up with the Fast Cap, now we have 800 products.[/su_quote] He goes on to explain how he goes about creating so many great products. [su_quote]Don’t complicate things, look for problems, and solve those problems with elegance and if you do that, pretty amazing things can happen in an individual's life.[/su_quote] Watch the whole video below. He tells a great story. [su_youtube url="https://youtu.be/CdxKZWfD4fA?t=152"]

What is the easiest business to start with no money?

The easiest business to start without money is the one that you already have the skills and tools for. Mike Andes told us: [su_quote]If you want to start your own business without money, the easiest way is to sell your time.[/su_quote] He gives an example of starting a weed-pulling business. It doesn't require any tools, just time and attention to detail. When I was growing up, I used to do this and make $20/hour cause the neighbors couldn't get normal landscapers to do it the way they wanted. Russell agrees that a lawn care business is one of the easiest ways to get started with little or no money. He told us: [su_quote]If you don't have the tools and the money to start a landscaping business, you can always require 50% upfront and go buy the tools with the retainer.[/su_quote]

How to Start an Online Business With no money

Personally, I think that being out in the sun all day, pulling weeds and operating machinery sounds like more work than I want to do. I tend to prefer using my mind over my body to earn a living that's why I do freelancing. Freelancing is taking on contract jobs online that businesses need help with but don't want to hire a full or part-time employee to do the work. As long as you have a computer and internet, you can start freelancing on companies like: There are five types of jobs that employers are typically looking for on these sites:
  1. Development jobs
  2. Graphic Design jobs
  3. Blogging and other writing jobs
  4. Digital Marketing
  5. Admin Work
If you don't have experience in these fields you should look for a mentor to gain experience. Let's look at each of these in more detail.

Business Idea: Software Development jobs

If you know how to build websites and work with coding languages, there is always a demand for software developers. Upwork has over 4,000 current listings looking for developers for projects. If you know any of these languages, companies are looking for help:
  • JavaScript
  • Python
  • HTML
  • Css
  • Java
  • SQL
  • NoSQL
  • C+
  • Rust
  • Perl
  • Go
Learn more about each one at Berkeley Extension. Most of the languages have free tutorials if you go to their websites, which can make it easy to learn them. In addition, Youtube videos can help you figure almost anything. Just don't take on more than you can achieve because your ratings will impact what jobs you can get. I know people who bill up to $500/hr for development work. If you can book these types of jobs, you'll be well on your way to starting your own business.

Business Idea: Graphic Design jobs

A woman holding a book about graphic designing Graphic design is another highly in-demand field where you can start a successful business with no money down. Upflip has nearly 3,900 graphic design projects looking for a designer. If you have some skills in Adobe Creative Cloud or comparable software, this can be a highly profitable online business idea.

Blogging and Other Freelance Writing Jobs

There are over 5,700 writing jobs on Upwork. This is my favorite type of online business because it gives me the opportunity to learn about new subjects and make money doing it. I will warn you, that it takes more than just writing about a subject. Other business owners want to see results quickly and a great blog is not the online thing that goes into business writing. You'll need to do Keyword Analysis and SEO Best Practices to help a new business get the most out of its content. At Upflip, we use SurferSEO to help us make sure we are writing the best blogs to give our readers exactly what they expect. For some blogs, I will also use rtyr.me to autogenerate content. Many writing jobs will pay a price per word, typically between $.02 and $.15/word. You need to be aware that you cannot assume that your WPM can be directly converted to your hourly. Each Upflip blog will normally include:
  • 1-2 hours watching videos
  • 1 hour finding and reading links
  • 1 hour editing
  • 2.5 hours writing ( I only type about 30 words per minute)
  • 1 hour back and forth with the client
  • 1-2 days struggling to figure out what story I want to tell (insert laughing crying face emoji)
So I might be able to do three blogs a week on a good week. at $.02/word, it would only be $92, which comes out to $11.50/hour, but they pay me far better than that. Just make sure you are aware of the time you spend on your business venture. If you bill based on 4 hours of time for the first 1,000 words and an hour for each additional thousand, you should be able to make a great living with this internet business.

Business Idea: Digital Marketing

Digital marketing is focused on helping businesses reach their customers. This can be through ads, social media marketing, or other marketing strategies. Businesses focused on this category will need to have familiarity with the platforms they are performing work on. The four major platforms that businesses really need help managing are:
  1. Google- Check out Google Digital Garage to learn how to maximize the utility of their platforms.
  2. Facebook-Check out Facebook Blueprint to learn how to maximize the utility of their platforms
  3. Amazon- Check out Amazon Advertising Learning Console to learn how to maximize the utility of their platforms
  4. LinkedIn- Check out LinkedIn Marketing Labs to learn how to maximize the utility of their platforms
Pay can be hourly, by the project, or based on performance. Make sure when starting off you aim for hourly. While you are developing your skillset there will be quite a learning curve. You'll be paying for your learning curve in its entirety if you charge by the project or based on performance. https://www.upflip.com/blog/most-profitable-businesses

Market Research

When starting a business with little money, or even no money, you'll need to research the product-market fit. A good business to start at a low cost is one that can be started with low upfront costs but has lots of demand for it. High demand and low upfront costs make a cleaning service the best business to start with little money. You already have the products you need at home and your target customer is anyone who needs help cleaning. (Let's face it everyone could probably use some help there. In other businesses, you'll have to do some market research to see whether your area needs them and how much money you can make when starting a business. Market research is simply establishing if there is demand for your product or service. Mike spends quite a bit of time discussing how to conduct market research. He shows the basic concept of market research by surveying his employees. Watch his take on conducting research below. [su_youtube url="https://youtu.be/xJ71lGDtSt4?t=456"] He discusses aspects such as demographics, online surveys, and target market. Let's look at each of these terms to better understand how to start a business.

What are demographics?

Demographics are statistical characteristics of a population or a subset of the population.  Some considerations you’ll want to consider are:
  • Location
  • Age
  • Gender
  • Other Interests
  • Marital Status
  • Do they have kids?
  • Job title
  • Income

How do I find out who my potential customers are?

If you have a new product idea potential customers may not be easily identifiable. If a business requires surveys and focus groups to establish what demographics are drawn to your small business idea, you may want to ask yourself? [su_quote]Is this the best business to start with no money?[/su_quote] As long as you have a few funds, you can use Facebook Ad Center to conduct surveys for less than $1 per action. PowerAdSpy has a great blog on how to use Facebook ads for market research campaigns. Paul has a great way of identifying your target market if you have a product. Just ask friends and family what they think of the product. [su_quote]If they offer to buy it off you, you have a winner. Anything else they could just be focused on not hurting your feelings.[/su_quote] Take note of the demographics of the people who are most interested and they'd be your target market.

Identifying your target market

A successful business needs to know who its ideal client is. Since you've just barely come up with the business idea, you'll need to figure out who buys the product or services you are selling. Facebook has got this down to a science, but their ads can be complex to use if you don't know what you’re doing. Wordstream published an infographic with all of Facebook's targeting options. If you want to get your target market as precise as possible, spend some time learning about each of the options.

A Business Plan for How to Start Your Own Business with no Money

Trying to start a successful small business without startup capital is going to be different than it would be when you decide to pursue a new business idea with available funding. The entire process will be focused on keeping costs low. Your business plan should be focused on this. The following points are an excerpt from our blog How to Write a Business Plan (Plus Examples & Templates) with comments that should be different when starting a business with no money:
  1. Business Plan Cover Page
  2. Table of Contents
  3. Executive Summary
  4. Company Description
  5. Description of Products and Services- This section should only be a product or a service. It's hard to offer more than one until you have more money. Focus on one great minimum viable product
  6. Marketing Plan
  7. SWOT Analysis
  8. Competitor Data
  9. Competitive Analysis
  10. Marketing Expenses Strategy-This section should probably have an original strategy based on low cost or free alternatives, then plans on how to expand based on extra cash flow.
  11. Pricing Strategy
  12. Distribution Channel Assessment- At first, this will most likely be yourself, print-on-demand, or electronic distribution models. Business models that let you make more money each time you sell a single unit of work are the most scalable. Then build to a more complex distribution.
  13. Operational Plan- You'll be doing everything at first. Specify the division of your time and how the work will be delegated later
  14. Management and Organizational Strategy- Current-you, future-provide chart.
  15. Financial Statements and/or Financial Projections- Without any money whatsoever, you'll probably be starting a business slowly. Don't put insane projections like making $100k profit in the first year if you don't have clients. You might aim for that, but you'll have to invest in the business and keep up with your living expense
  16. Funding- start with what you can do without funds, then what means you'll be able to pursue funding once your business idea starts generating more revenue.

Funding

Man at with a monitor on his desk The primary ways of funding are:
  • Personal funds
  • Loan from family or friends
  • Business partner(s) – inc.com has a great blog on considerations about a partnership
  • Business loans- Check out our partners

How much money does it take to start a business?

According to Shopify, starting a business normally costs $18,000 for business owners with zero employees, while a business with up to 4 employees spends $60k during the first year. Shopify included 300 business owners in their study and found that they funded their business in the following ways:
  1. 198 used personal savings
  2. 90 reinvested revenue
  3. 69 got support from friends and family
  4. 63 got a personal loan
In other words, you'll probably need some skin in the game because bootstrapping is the number one way of starting a business. Shopify goes on to explain the percentages a business should aim to spend on various aspects of the business. They suggest the following:
  • Operations: 10%–15% - Software for managing business. This can be fairly low. For instance, Quicken is $100/year and will make keeping track of accounting easier. Cloud based services normally have free trial periods to get started.
  • Product: 28%–36%: When selling goods divide the cost by.28 to get the price you should sell for. Use Printful to make this process easier.
  • Shipping: 8%–12%=should be covered by the customer unless they spend over a certain amount.
  • Online: 9%–10%=Cost of software directly attributable to selling product
  • Marketing: 7%–12% =You or outsourced
  • Team: 14%–30%=You starting off.
I have included some observations after Shopify suggested percentages. The good news is that you'll really only need about $1,500 per month to operate for a year. Let's look at some more commonly wondered things.

Can I start a business with no money?

Sure you can! It's not as easy as if you have money, but plenty of small businesses have been started without any money. Small business owners will normally need to be in a service-based business as they generate cash flow by selling their time. We've been discussing some of these throughout.

How to start a business with no money or experience

Get some experience and while you're getting the experience save money from getting a job in the field. Now you have money and experience. That makes funding a lot easier. People or businesses might even be willing to help you secure funding at that point. You can try talking to venture capitalists, but you may find that talking to people who run a profitable business puts you at risk of them taking the idea and going to market quicker.

How to start a successful business with no money and bad credit

You'll either need to get money from friends, family, a partner, or bootstrap it. Can I suggest getting a secured credit card and paying off your debts as you can? It is really difficult to find a business you can start with no money, but it makes it even more difficult if you have bad credit. The credit card expiration is one example of bad credit that can hold you back. If you can improve your credit score, you may be able to get a business loan or credit card with a lower interest rate, which can help you save money on the cost of starting your business.

How to start a business with no money or credit

Get a secured credit card ASAP, use it to fund the business, and earn credit by paying it off each month.

Structure the business

A man at his desk using his personal computer Licensing and legal requirements are a major part of starting a business. the business will need to comply with certain requirements including:
  • Business Formation
  • Getting an EIN from the IRS
  • Getting a state/local business license
  • Unemployment Insurance
  • Workman’s Comp
Let's look at each

Business Formation

You need to establish the legal structure for your business. For best results, I'd normally recommend hiring legal representation that has experience starting a business, like an attorneyaccountant, or tax specialist. They’ll help you get your business started quickly so you can focus on other aspects of starting a business. Since you are trying to figure out how to start a business from scratch with no money, you'll probably want to bypass the lawyers. Some law schools have programs that provide people with low cost/no cost legal services. Check with your local college to see if they can help.

Licenses, permits, and tax forms

Each location has different licenses, permits, or tax forms required. Use the SBA License and Permits page to identify what your business needs. Keep reading for information on different legal structures.

Sole proprietorship

A sole proprietorship is the easiest way to start a business with no money, but the structure doesn’t protect the owner’s personal assets from legal issues. That means if something goes wrong, you could lose both your business and any personal assets you own. I would recommend this structure for the shortest time possible then upgrade to an LLC. Some places even allow free sole proprietorships. Just search starts a "sole proprietorship for free in my state". To start a sole proprietorship, fill out a special tax form called a Schedule C. Sole proprietors can also join the American Independent Business Alliance.

Limited Liability Corporation (LLC)

Three cubes with the letters LLC An LLC is the most common business structure used in the United States because the company protects the owner’s personal assets. It’s similar to partnerships and corporations but can be a single-member LLC in most states. An LLC requires a document called an operating agreement. Each state has different requirements. Here’s a link to find your state’s requirements. People may register in specific states due to the cost of doing business. Delaware and Nevada are common states to file an LLC because of their business-friendly laws. Here’s a blog on the top 10 states to get an LLC. You'll want to progress to an LLC once you have some revenue, but its not best for businesses to start with no money.

Partnerships and corporations

Partnerships and corporations are typically for massive organizations or legal firms. Unless there is a specific reason you need a partnership, it is better to do a multi-person LLC. Investopedia has good information about partnerships and corporations here. You probably won't need these, but they are good to know about.

Apply for an EIN

Every business operating in the United States needs an employer identification number. It’s like a social security number for your business. Apply for it on the IRS website. It’s used on tax forms when filing taxes and to tie employees’ pay to the proper employer. They don't cost anything so make sure to do this step.

State/Local Business Licenses

Each location has different licenses, permits, or tax forms required. Use the SBA License and Permits page to identify what your business needs. Keep reading for information on different legal structures. Most places are fairly inexpensive for most industries, but you'll need to check for your location. Avalara has a great list of sale tax license costs by state.

Unemployment Insurance

Approval of business insurance The U.S. Chamber of Commerce has a ton of information on unemployment and also offers links to each state agency that handles state unemployment. You’ll have to pay $420 per employee on a federal level plus any state UI.

Workman’s Compensation

Workman’s compensation is basically insurance against injury or disability. Each state has different requirements. Check your state requirements.

Preparing for Opening Day

Preparing for your first day in business is not going to be like most people think of where they finally have an office space. You'll either be going around to neighbors houses or working on your computer because the best business to start with little money from home is an online business. Honestly this section should really be described as how to start an online business with no money. You've got a great business idea, but now you need to figure out how great business ideas become successful businesses. You'll need to find all the tools and free resources you can find to connect to potential customers. Here's a list of some companies that offer free software; Most software providers have at least a free trial period that gives you time to set up your business online before you have to spend money. Some online advertising will also offer deals, but be careful when accepting them. I once accepted an offer for $500 for free when you spend $500. It started before I was ever given access to the account. I never got access to the account and 18 months later I got a call telling me I owed them $500 for services. Online businesses are great cause they allow you to deduct some of your living expenses like utilities, rent, and internet connection from your taxes. You get to be your own boss, and a lot of the expenses are fixed costs. From my standpoint, you definitely want to understand how to start a business with no money online. Keep reading for some tips on how to start a business without money.

Tips on How to Start a Business with NO Money

A man using his laptop at his desk Here's some extra tips about how to start an online business with no money.
  • Don't spend a lot of time on a registered trademark. It's a waste of money until you drive revenue.
  • Avoid merchant cash advances and other forms of credit with interest higher than your profit margin. They are slowly driving losses.
  • You'll probably be able to get personal loans or business cards before a small business loan. Small business loans need to be spent wisely because they aren't earned.
  • Online courses are so essential to learning business skills in today's society.
If you own tools, you might consider starting a woodworking company too. Good luck on your venture into Entrepreneurship. Let us know what type of business processes you'd like more information on .

Comments

David Warrick@ 2023-12-08 09:22:12

My name is David warrick I live in arizona..I like to learn how to operate a tow truck and own one ,this is the job I want to retire from im a 52 now..still twenty years to go. I really want this

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