Starting a business is not for everyone. But for those brave enough to embrace entrepreneurship, we wanted to share a few quick tips to reference for those that are considering going into business for themselves. It can be a tough but amazing journey!
Ask yourself some questions!
There’s more to starting a business than just having a URL. Think about these things and work up your answers before jumping in.
- What type of business will you have? — Decide what structure you want or need your business to be — Limited Liability Company (LLC), Corporation, Partnership, Sole Proprietor, etc.
- Will you have employees? — Will they be full time, part time, contractors?
- Will you have one or more physical location(s)? All in the same state?
- Do you have a business plan and know what goods or services you will be providing?
- Have you decided on a name?
Hire a good lawyer
You have to have someone that can help you with the legalities of running and owning a business. You may need someone to look over or prepare contracts to CYA (Cover Your A**)! You need someone you can reach to bounce questions off if a situation arises with an employee or a client. Don’t just go with anyone. Do the research, get referrals, ask questions, and check reviews. Take a little extra time here in the beginning so you don’t get stuck at a bad time later when you really need help having to hire a new one.
Find a great accountant
You want someone you can trust to answer questions about how to maintain your company books. Someone you can get ahold of for quick questions. Someone that will file your taxes on time and help make sure you are in compliance. Like above, don’t pick just anyone. Do your due diligence here and you will thank yourself later.
Know the difference between Federal, State, and City/County Government Agencies
Each of these serves a different purpose so make sure you do the research and call the agencies for help if you need to. You do not want to miss something that will put your business on hold or trip you up later.
- Federal — Depending on how you chose to format your business, you will likely need a Tax ID # / Federal ID #. This relates to your business like your social security number relates to you.
- State — Generally speaking you will have a state license or permit that must be filled out for each state in which you do business with a physical location. If you are hiring employees, you will have at least one other state agency permit, application, or account to set up for Unemployment or Withholding taxes.
- City/County — There may be city licenses or permits as well and possibly county or parish rules and regulations.
Fun fact — In Las Vegas, where Reinventing Events is based out of, we have to file with City of Las Vegas AND the State of Nevada.
Get Insurance for your business
Do not forget to cover your assets. General Liability Insurance, Workers’ Compensation (if you have or foresee employees), Auto Insurance, and Property Insurance are all types of insurance coverages offered for businesses. Consider using an agent that can write for multiple companies and even lines of coverage. They are more likely to help make sure you have thought of everything.
Track your finances and expenses
You need a budget tracker of some sort and some way to keep track of all your overhead expenses (e.g. payroll and contractors, rent for an office, insurance, etc.). You’ll also need to track your incoming and outgoing revenue and expenses per project/client. You may even need a Point of Sale option if you’re taking credit card payments. Quickbooks, Google Sheets, and Excel are a few options you may want to check out.
Expensify is a great tool for employee reimbursements of business related expenses or for requesting reimbursement for your expenses from customers/clients. Expensify is also a great place to keep track of and store your paper receipts and monthly transactions for future reference without having to keep all the paper. All you do is take a photo of the receipt and it’s stored in Expensify. Super easy!
While this isn’t the all inclusive list, we feel there is some great information that some people may overlook in the bustle of getting their new business up and running. If you want more tips for starting a business, grab this download!
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