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Starting a small business - what's involved?
Starting Your Own Business
Business ownership is a great idea, but most new owners do not plan properly and can find themselves lost in the worries of running a profitable business. Proper planning can mean the difference between making a profit or creating a huge debt your first year. Seek the advise of an qualified accountant and even a lawyer to help you on your way to a profitable business ownership.
Business Entity - Which Do I Choose?
C Corp
S Corp
Limited Liability (LLC)
Parternships
Sole Proprietor
There are advantages and disadvantages to each type of business. Know the differences before you choose.
Preparation Means Everything!
Things to do before you open your doors:
· Open a business checking account
· Open a Merchant Account to accept
credit card payments
· Set up your company website
· Obtain business cards & marketing
material
· Create a logo for your business
· Obtain a business phone number and
fax number
· Create an email account
· Obtain applicable business insurance
· Open utilities accounts if needed
· Seek the services of a qualified
accountant to set–up your financial
books
Decisions, Decisions, Decisions?
TAX ACCOUNTANT vs BOOKKEEPING SERVICES vs an ACCOUNTANT - Why Pay More Than You Need To?
Are you paying tax accountant prices for bookkeeping services? Tax accountants may charge anywhere from $150-520 per hour or more for their services. Or have you hired a data entry bookkeeper trying to try & keep your costs down?
Every small business needs a qualified accountant to look at their books. An accountant can get your books in order and eliminate costly errors by a bookkeeper who may not know more than how to enter bills, write checks, create invoices, and make deposits. An accountant understands the workflow and the effect the transactions will have on your financial statements and your bottom line.
A qualified accountant can also help you with your business plan, yearly budget, and offer insight to tax implications that may affect your company.
EMPLOYEES vs CONTRACTORS
Do you hire employees or independent contractors?
If you decide to hire employees, you will need to pay payroll withholding taxes and unemployment taxes for your employees. If your employees will be working full-time for you, this is the way to go.
If you intend to have part-time employees, you may consider hiring independent contractors (1099 contractors). You will not need to pay any withholding or unemployment taxes on these employees. They are responsible for paying their own taxes when doing their year-end income taxes.
Depending on whether you hire employees or independent contractors, certain forms must be filled out & kept on file. Please read the form instructions carefully. There are deadlines when the forms must be filed by.
It is the business owners responsibility to insure that the workers he/she hires are eligible to work in the United States.