Business creation is the transformation of an original idea into a viable, sustainable economic enterprise. The process includes creating a business plan and making the necessary financial arrangements to start the company. It also involves obtaining the necessary permits and licenses for operating a business in your state. For example, a new business typically requires filing an application for an employer identification number (EIN) with the Internal Revenue Service. This step helps ensure that the business is registered and will be eligible for certain tax benefits, such as a separate income-tax filing.
Entrepreneurs create companies in many ways, including starting a new retail store or manufacturing plant, or opening a small office for a consulting firm. Other entrepreneurs may begin a large corporation to develop and market a new product or technology. Still others will start their own company as a vehicle for personal wealth creation, or simply because they have a unique invention or service that could be valuable to customers.
Most new businesses are created to provide goods and services, but some are also started to invest in social change. These entrepreneurs innovate with products that reduce dependence on existing methods and systems, or even render them obsolete. These inventions can lead to more job opportunities and increase the gross national income of a nation, allowing it to expand its investments in public projects. In addition, entrepreneurs contribute to a community by investing in charitable and nonprofit organizations.