While there are national delivery services such as USPS, FedEx, and UPS, people frequently require packages to be delivered to nearby locations in less time than these services can provide. A delivery service provides quick, often same-day delivery within a specific geographic area. A service may specialize in one type of delivery, such as food delivery, or it may deliver all types of packages.
There is more to starting a business than merely registering it with the government. This comprehensive manual will help you launch your delivery service. These actions will guarantee that your new business is well-prepared, legally compliant, and registered in the appropriate manner.
1: Plan your business
A well-thought-out plan is essential for entrepreneur success. It will help you identify certain unknown parameters and map out the characteristics of your company. A few crucial considerations include:
- What are the initial and ongoing expenses?
- Who is your intended audience?
- What price range can you offer to your clients?
- What will you call your company?
2: Form a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most common business structure types.
If your delivery service is sued, forming a legal business entity, such as an LLC or corporation, protects you from being held personally liable.
You can engage one of the Top LLC Services for a modest price, or you can form an LLC on your own and only pay the minimal state LLC fees.
3: Register for taxes
You need to register for a number of state and federal taxes before you can start doing business. You will require an EIN in order to file taxes. It’s very simple and completely free!
- Taxes on Small Businesses
You can have a variety of taxation alternatives available to you, depending on the type of business structure you choose. For instance, some LLCs might benefit by being taxed as a “S company” (S corp).
Your business can be subject to state taxes. You may read more about state sales taxes and franchise taxes in our state sales tax guidelines.
4: Open a company bank account and credit card
It is necessary to employ specific corporate banking and credit accounts for personal asset protection. Your personal assets, such as your home, car, and other valuables, are at danger if your company is sued when you combine your personal and business accounts. In company law, this is referred to as “piercing your corporate veil.”
Furthermore, learning how to build business credit can help you obtain credit cards and other financing in your company’s name (rather than your own), better interest rates, larger lines of credit, and other benefits.
- Establish a business bank account.
Opening a business bank account is not only required when applying for business loans but also:
Separates your assets from the assets of your company, which is required for personal asset protection. It simplifies accounting and tax filing.
- Apply for a business credit card.
Getting a business credit card benefits you in the following ways:
Put all of your business’s expenses in one place to separate personal and business expenses.
Build your company’s credit history, which will be useful when raising funds in the future.
5: Set up business accounting
Understanding your company’s financial performance depends on keeping track of all of your income and spending sources. Also, keeping precise and thorough records makes filing taxes every year much simpler.
6: Obtain necessary permits and licenses
Heavy fines or even the shutdown of your business may result from your failure to secure the required permissions and licenses.
- State and Local Business Licensing Requirements
To operate a delivery service, certain state permits and licenses may be required. To find out more about the license requirements in your state, go to the SBA’s reference to state licenses and permits.
Furthermore, local licensing or regulatory requirements may apply. For more information on local licenses permits, please visit:
Consult the county, city, or town clerk for more information. For assistance, get in touch with one of the regional organizations listed in the US Small Business Associations’ directory of regional resources for businesses.
- Registration of Vehicles
Businesses must register vehicles that will cross state lines for commercial purposes.
7: Get business insurance
Insurance, like licenses and permits, is required for your business to operate safely and legally. The financial stability of your organization is safeguarded by business insurance in the case of a covered loss.
For different businesses with different risks, there are several types of insurance plans. Start with general liability insurance if you are unsure of the hazards that your business may encounter. This is the most common coverage required by small businesses, so it’s a good place to start for yours.
Another crucial insurance plan that many firms demand is workers’ compensation insurance. If your company will have employees, your state may require you to carry Workers’ Compensation insurance.
While there are national delivery services such as USPS, FedEx, and UPS, people frequently require packages to be delivered to nearby locations in less time than these services can provide. A delivery service provides quick, often same-day delivery within a specific geographic area. A service may specialize in one type of delivery, such as food delivery, or it may deliver all types of packages.
There is more to starting a business than merely registering it with the government. This comprehensive manual will help you launch your delivery service. These actions will guarantee that your new business is well-prepared, legally compliant, and registered in the appropriate manner.
1: Plan your business
A well-thought-out plan is essential for entrepreneur success. It will help you identify certain unknown parameters and map out the characteristics of your company. A few crucial considerations include:
- What are the initial and ongoing expenses?
- Who is your intended audience?
- What price range can you offer to your clients?
- What will you call your company?
2: Form a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most common business structure types.
If your delivery service is sued, forming a legal business entity, such as an LLC or corporation, protects you from being held personally liable.
You can engage one of the Top LLC Services for a modest price, or you can form an LLC on your own and only pay the minimal state LLC fees.
3: Register for taxes
You need to register for a number of state and federal taxes before you can start doing business. You will require an EIN in order to file taxes. It’s very simple and completely free!
- Taxes on Small Businesses
You can have a variety of taxation alternatives available to you, depending on the type of business structure you choose. For instance, some LLCs might benefit by being taxed as a “S company” (S corp).
Your business can be subject to state taxes. You may read more about state sales taxes and franchise taxes in our state sales tax guidelines.
4: Open a company bank account and credit card
It is necessary to employ specific corporate banking and credit accounts for personal asset protection. Your personal assets, such as your home, car, and other valuables, are at danger if your company is sued when you combine your personal and business accounts. In company law, this is referred to as “piercing your corporate veil.”
Furthermore, learning how to build business credit can help you obtain credit cards and other financing in your company’s name (rather than your own), better interest rates, larger lines of credit, and other benefits.
- Establish a business bank account.
Opening a business bank account is not only required when applying for business loans but also:
Separates your assets from the assets of your company, which is required for personal asset protection. It simplifies accounting and tax filing.
- Apply for a business credit card.
Getting a business credit card benefits you in the following ways:
Put all of your business’s expenses in one place to separate personal and business expenses.
Build your company’s credit history, which will be useful when raising funds in the future.
5: Set up business accounting
Understanding your company’s financial performance depends on keeping track of all of your income and spending sources. Also, keeping precise and thorough records makes filing taxes every year much simpler.
6: Obtain necessary permits and licenses
Heavy fines or even the shutdown of your business may result from your failure to secure the required permissions and licenses.
- State and Local Business Licensing Requirements
To operate a delivery service, certain state permits and licenses may be required. To find out more about the license requirements in your state, go to the SBA’s reference to state licenses and permits.
Furthermore, local licensing or regulatory requirements may apply. For more information on local licenses permits, please visit:
Consult the county, city, or town clerk for more information. For assistance, get in touch with one of the regional organizations listed in the US Small Business Associations’ directory of regional resources for businesses.
- Registration of Vehicles
Businesses must register vehicles that will cross state lines for commercial purposes.
7: Get business insurance
Insurance, like licenses and permits, is required for your business to operate safely and legally. The financial stability of your organization is safeguarded by business insurance in the case of a covered loss.
For different businesses with different risks, there are several types of insurance plans. Start with general liability insurance if you are unsure of the hazards that your business may encounter. This is the most common coverage required by small businesses, so it’s a good place to start for yours.
Another crucial insurance plan that many firms demand is workers’ compensation insurance. If your company will have employees, your state may require you to carry Workers’ Compensation insurance.
8: Define your brand
The brand of your business is what it stands for and how the general public views it. Your business will stand out from the competition with the help of a powerful brand name.
- How to market and promote a delivery service
Putting signs on delivery vehicles and going to highly desirable locations for potential customers (such as florists and pizzerias) and requesting to advertise at, and even partner with, these businesses are two of the most effective ways of marketing a delivery service business. Many other free and low-cost advertising methods, such as creating a website, posting on social media, and distributing flyers, can also be beneficial.
- How to keep customers returning
A delivery service can entice customers by promising quick delivery. After all, this is one of the primary reasons why people prefer to use local courier services over national companies.
Furthermore, offering a discount or free delivery to customers who refer friends and family will ensure you build a larger customer base.
9: Create your business website
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
Creating a website is one of the most crucial steps. However, it might be a bit challenging for a few people due to a lack of website-building experience. While this was a reasonable concern in 2015, web technology has made significant advances in recent years, making the lives of small business owners much easier.
10: Set up your business phone system
Getting a phone for your business is one of the best ways to keep your personal and professional lives separate and private. That isn’t the only advantage; it also helps you automate your business, gives it legitimacy, and makes it easier for potential customers to find and contact you.
Entrepreneurs who want to set up a business phone system can choose from a variety of services. We reviewed and rated the top companies based on price, features, and ease of use.
The brand of your business is what it stands for and how the general public views it. Your business will stand out from the competition with the help of a powerful brand name.
- How to market and promote a delivery service
Putting signs on delivery vehicles and going to highly desirable locations for potential customers (such as florists and pizzerias) and requesting to advertise at, and even partner with, these businesses are two of the most effective ways of marketing a delivery service business. Many other free and low-cost advertising methods, such as creating a website, posting on social media, and distributing flyers, can also be beneficial.
- How to keep customers returning
A delivery service can entice customers by promising quick delivery. After all, this is one of the primary reasons why people prefer to use local courier services over national companies.
Furthermore, offering a discount or free delivery to customers who refer friends and family will ensure you build a larger customer base.
9: Create your business website
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
Creating a website is one of the most crucial steps. However, it might be a bit challenging for a few people due to a lack of website-building experience. While this was a reasonable concern in 2015, web technology has made significant advances in recent years, making the lives of small business owners much easier.
10: Set up your business phone system
Getting a phone for your business is one of the best ways to keep your personal and professional lives separate and private. That isn’t the only advantage; it also helps you automate your business, gives it legitimacy, and makes it easier for potential customers to find and contact you.
Entrepreneurs who want to set up a business phone system can choose from a variety of services. We reviewed and rated the top companies based on price, features, and ease of use.
