How To Start A Remote Tech Company  | DistantJob - Remote Recruitment Agency
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How To Start A Remote Tech Company 

Sharon Koifman
Founder and Remote CEO at DistantJob - - 3 min. to read

Running a tech company can be profitable, especially if you’ve acquired expertise in that industry. As a business owner, you’ll develop and distribute technology-based products and services to clients. Many people are leveraging modern technologies to streamline operations and optimize their business. Therefore, running a tech company allows you to connect with many clients, increasing your chances of generating more revenue and profits and earning a livelihood.

When starting a tech company, you can decide to run it remotely. And for good reasons, it allows you to connect with customers internationally, access a global pool of talented workers, reduce operational costs, enhance work-life balance, and boost employees’ productivity. These benefits enable your business to quickly establish a solid foundation and maintain long-term growth.

Steps To Starting A Remote Tech Company 

There are many key steps when starting a remote tech company. They include the following:

1. Choose Your Business Entity 

Deciding on a business entity is the most important step when starting a remote tech company. It refers to a legal structure your firm will adopt to operate and conduct its activities. Here are common business entities for tech companies:

  • Sole Proprietorship: It’s the simplest form of business entity where a single individual owns and operates the business. The owner has full control over the company’s operations and is personally responsible for its debts and liabilities.
  • Partnership: It involves two or more individuals agreeing to share a business’s ownership and responsibilities. There are different types of partnerships, including general partnerships and limited partnerships. In a general partnership, all partners have equal liability for the company’s debts and obligations. In a limited partnership, there are both general partners (with unlimited liability) and limited partners (with limited liability). 
  • Corporation: It’s a separate legal entity from its owners (shareholders). It provides limited liability protection to its shareholders, meaning their personal assets are generally protected from the company’s debts and obligations. Corporations have a more complex structure involving shareholders, directors, and officers. They also have specific legal requirements for governance, such as holding annual meetings and maintaining corporate records.
  • Limited liability: A limited liability company combines corporation and partnership elements. It offers limited liability protection to its owners (called members), shielding their personal assets from company liabilities. LLCs provide flexibility in terms of management structure and tax options. They are governed by an operating agreement that outlines the rights and responsibilities of the members. 

Your business entity will also determine your tax obligations. For instance, you’ll pay taxes from your share of profits in a partnership and limited liability entities. But there are some low income tax bracket thresholds where you won’t bear any tax burden. Research how much you’ll have to make to pay and file taxes in the state.

2. Create A Remote Business Plan 

Another important step when starting a tech business is to build a business plan. This document outlines the strategy and objectives of your remote tech company. It includes aspects such as your technology infrastructure, team management, and strategies for remote working collaboration.

A business plan also describes your marketing strategy and how you intend to connect with potential clients. Ideally, it should include all the sections an in-person business plan would have, including the company description, management team, proforma financial statements, and vision. The primary objective is to guide your daily operations, so ensure you develop a comprehensive document.

3. Secure Funding To Launch Your Remote Tech Company 

When launching a remote tech office, you might not require to rent and furnish a space since you and your employees can work from home. However, you’ll have to decide where to source funds for other activities, such as purchasing equipment, installing tools on your website, marketing, and hiring employees. First, evaluate how much money you need to launch your remote tech and keep it running.

Having a clear budget for your business capital requirement will help you to choose the most suitable source of funds. Here are common sources of capital you can choose from:

  • Bootstrapping
  • Bank loans
  • Crowdfunding
  • Love money
  • Government grants
  • Angel and capitalist investors.

Research all these sources of finance and choose the most suitable for your tech company’s needs.

4. Register Your Remote Tech Company 

There are several reasons you’d want to register your tech business. First, it’s a legal requirement to register a company with the state before serving clients. And secondly, it’s an effective way to attract and connect with more clients. Business registration is one of the factors your potential clients consider when purchasing technology-related products and services. Therefore, running an unregistered remote tech company will likely turn away potential clients.

When registering your tech company, start by creating a name. The title will help clients to identify your services. And for marketing purposes, ensure you choose a unique name.

Once you’ve got a business name, file all the required documents with the state. And this will depend on your chosen business entity. For instance, you must prepare partnership deeds to run a partnership tech company. 

Likewise, you’ll need articles of incorporation, shareholders agreements, and bylaws to launch your company as a corporation. Once you register your business, you’ll obtain operating licenses and permits to run your remote tech company.

5. Hire Talented Professionals

In order to ensure success as a business owner, it is essential that experienced professionals are brought in to help the company grow. Whilst it is possible to outsource some tasks that do not require a high degree of input or creativity at a lower rate, more complex operations, such as Full Stack, require expertise that can only be provided by professionals who have a comprehensive knowledge and experience. Therefore, you’ll want to hire expert developers with the right knowledge and experience, such as those vetted by DistantJob.

Tony Hsieh, the founder of Zappos, similarly invested heavily in remote work practices. He maintained a corporate culture that valued customer service, transparency, and a relentless focus on growth. This approach also allowed Zappos to build a team of experienced remote workers and ensured that they always got the best people for the job.

At DistantJob we have found that it is crucial to hire talented IT professionals for complex operations in order to ensure excellent service quality and overall customer satisfaction. Our remote hiring process is designed to thoroughly evaluate the skillset of each candidate and guarantee that they have the right expertise associated with the required tasks. By partnering with DistantJob, you can rest assured you’ll have access to the right professionals to cater to your needs.


I know starting a remote tech company can be an intimidating endeavor, but I believe it’s always possible to make it a reality. As a founder myself, I encourage you to take the plunge and start yesterday!

I’m confident that with the right planning, dedication, and passion, you can make it a reality. As said previously, consider what entity is right for your business, secure funding, get the right people on board, and make sure to register your company name.

By carefully attending to these crucial aspects, you can lay a strong foundation for your remote tech company and increase your chances of long-term profitability and growth.

Sharon Koifman

Sharon Koifman, the founder and remote president at DistantJob, specializes in recruiting top remote developers and spearheading remote workforce strategies. Sharon's approach combines cutting-edge remote recruitment practices with a deep commitment to building effective, globally distributed teams.

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