Setting up a small business involves a number of formalities and steps to be followed. Prior to setting a business, you need to have a business idea followed by a marketing plan to execute that idea. These both aspects lay the foundation of a small business. A business idea should be selected on the basis of the specialization area of the owner as well as on the degree of investment into the business.Essentials for Setting up a Small BusinessThere are certain resources that are essential while setting up a small business. These include-Planning:The base of any small business is a well-crafted plan. A good plan helps you in well executing the other functions such as management, organizing, and controlling. The promotion and advertisement of the products should be well planned and then implemented.Arranging Funds:Small businesses require low investment than big scale business. A big share for the funds for a small-scale business is usually gathered from personal savings. Many banks and financial institutions also give loans on a certain amount of interest and collateral security as a back up.Naming the Business:Naming your small business is very important. The name gives recognition to the business and makes it stand unique in the market that is full of other such businesses. Moreover, the name also represents the type of services offered by the franchise.Registration:Registration to a small business gives a formal entity to a business. It requires some paper work and procedures. The Secretary of State formally recognizes your business as corporation or a limited liability company. You also need to have an employer identification number while setting up a business.Accounting and Book Keeping:It is always recommended to have a separate banking account for the business. This will help you in keeping the track of the income and expenses. You can also use accounting system or software that also helps in maintaining the record books.Licensing:To acquire a license for your small business, you need to consult the local authority where the business will be set up. Licensing procedure requires certain fees and rules to be followed.Tax Implications:The tax implications depend on the entity of the small business. A sole proprietorship business needs to pay quarterly payment at the end of a quarter year. In case the small business is S-Corp, C-Corp, or LLC, you need to contact the attorney for your tax implications.Client Contract for Service:While setting up the business, a client contract for the services should be made. This helps in making a mutual agreement and understanding a plan to work together.Setting up a small business requires certain essential aspects as mentioned above. These aspects help you in well setting up the business in the market. Aftermath, its your responsibility to its take it further. A good businessman always looks out for more options and resources to expand his business. Always seek advice and suggestions from your experienced and senior businessmen to attain success with your small business.