How to start consulting on your own

Starting an entrepreneurial venture can open many new doors, and it's not as hard as you may think.

Have you ever considered consulting on your own?

I’ve talked with several folks who are interested in consulting independently.

Following is a startup checklist that Zane Connally shared with me before I started OVG. I hope it may be as useful for others as it was for me!

✅ Come up with your business name: you can search for existing LLCs in your state.

✅ Secure your business domain: check to see if your desired domain name is available (they can be expensive and hard to find!).

✅ Set up your legal entity and get your FEIN: a single-manager LLC is a simple option.

✅ Decide how you want to be taxed (if an LLC): there are multiple options for LLCs.

✅ Set a registered agent with a physical address: you can use a registered agent service and get a business address.

✅ Get a CPA: you may want help with bookkeeping and tax filing, or you can DIY.

✅ Get legal counsel: you’ll want a trusted advisor to review contracts, partner agreements, operating agreements, etc.

✅ Register to pay state income taxes: e.g., the Californian Franchise Tax Board.

✅ Register to pay state payroll taxes: e.g., the California Employment Development Department.

✅ Host and set up your website: you can get hosting through your domain provider and there are many intuitive website design tools.

✅ Set up email accounts: set up an email account with your new domain. Make sure to follow the steps to set up your DNS records correctly so you can send/receive mail! Consider setting up a couple admin aliases like info@__.com or billing@___.com.

✅ Open a business bank account: once you have your FEIN, you can set up a business bank account. Keeping all business activity segregated will make bookkeeping much simpler. You can get debit/credit cards for the account like you would for a personal account.

✅ Draft a Master Services Agreement and Statement of Work: for consulting engagements, having templates to leverage will be helpful.

✅ Get business insurance: oftentimes, carrying business insurance will be a requirement to engage with a client.

✅ Get equipment and software: a computer, VPN, e-signature software, productivity software, business cards, professional headshot, time/expense tracking software, etc., may all be helpful.

✅ Set up a working space: there are plenty of co-working spaces, but WFH may also be an option.

✅ If you are hiring or partnering up, you may need to consider:

- Finding a benefits broker and opening up a group health insurance plan.
- Getting legal counsel for HR matters.
- Drafting an operating agreement for multiple managers/members.

This may seem like a lot but the upfront investment is not too high (especially if you’re willing to DIY), it doesn’t require quitting your day job, and setting up your own shop can open many doors to new entrepreneurial opportunities. I wish I would have set mine up sooner.