Starting Your Own Business
Are you looking to establish your own business? You’ll find below some simple business tips to get you started in the right direction:
- First, you will be required to decide on a name for your company. If you are planning to form a corporation or a limited liability company (LLC), you will need to file with your selected State, Articles of Incorporation or Articles of Organization, respectively, depending upon which entity you intend to form. There are advantages and disadvantages for each type of entity, depending on your specific type of business. Contact us for an in-office appointment to discuss this important matter.
- Second, you will need to have a good business plan complete with revenue and expense projections in order to gauge your profit or loss. This procedure is commonly referred to as a budget. Your business plan should also concentrate on maintaining sufficient cash flows during the start-up phase in order to meet your operating needs.
- Third, if you form a LLC or corporation, you will require an EIN (employer identification number) from the Internal Revenue Service (IRS). Complete Form SS-4 and either mail, fax, or call the IRS to obtain an EIN. Alternatively, you may visit the IRS website (www.irs.gov) to obtain an EIN for your new business.
- Fourth, you will be required to register your business with the State or States in which you plan to carry out business for purposes of taxation (i.e. – payroll withholding, personal property, income tax, sales tax, etc.). Get in touch with your State’s Dept. of Taxation or applicable authority or visit their website to get the necessary forms or to register online.
- Fifth, you will have to decide on your fiscal year (calendar year or some other 12 month period). It is essential to consider your business cycle in making this selection.
- Sixth, think about whether your business is viable as a home-based business or whether you will have to look for commercial office space. Check local ordinances to find out about the permissibility of and requirements to run a home-based business in your area.
- Seventh, keep complete records of your household expenses such as utilities, upkeep costs, property taxes, and other outlays. A pro-rata portion of these expenses may be deductible as home-office business expenses. The basis for the pro-rata portion is usually related to either office size or some other reasonable method for allocating costs between business and personal use.
- Eighth, get busy and go out there, promote your business, have a great time, and achieve success.