According to the National Federation of Independent Businesses (NFIB), logos help build your business' identity and can be created in three steps.
First, conceptualize the logo, possibly through online services or DIY software for less than $200. There also are branding consultants and ad agencies that can help you with this part. During this step you should consider color schemes, why you started your business and goals you have for it.
Once you have ideas in place, execute your plan with the idea that less is more. You can use the business' name, but you also can identify your biggest values. Keep things clean and bold, remembering that sometimes it might be used in black and white. Stick with one design element, and use no more than three standard pantone colors, the NFIB suggests.
Finally, refine your rough draft by sharing it with family, friends and coworkers. The NFIB suggests printing it on a piece of paper, hanging it on a wall and backing up to squint at it. If it looks nice, you're in business.
Once you've decided on a logo, you should copyright it, as it should last your business at least 10 years.