I want to start my own business

Parent Cafe
21

LLC is easier to manage than S Corp.

http://www.bizfilings.com/learn/llc-vs-s-corp.aspx

Common things for a small business without employees (paying contractors to do work and send them form 1099 in January):

  1. Have an official address to receive legal papers. This could be your home or could be through a third party.
  2. Have a bank a account in the business name to deposit income and to write check for expenses. A credit card in the business name is also needed.
  3. Bookeeping records. This is not too complicated if the business only provides service to clients. All income checks and expenses need to have records for tax purpose.
  4. Pay annual state tax and city tax/permit.
  5. Pay annual federal tax.
22

Read the e myth. Get a tax I’d number. I’ve been in business for 15 years. At first no one would loan me a penny, all our start up was our savings and family loans.
Don’t outgrow your ability to keep your business afloat and pay your bills.
Avoid hiring employees as long as possible. At that point hire out what you don’t do well.
Do not give anyone the ability to access your bank to pay bills, etc
Get yourself on payroll and pay those payroll taxes every time.
Do not get a partner.

23

AttorneyMother, thus far I’ve been keeping track in a paper journal – income, expense, mileage, money set aside for taxes. That’s about it. Being intimidated by having to do all those things is part of what’s holding me back. :slight_smile:

Madison, if you saw my house you would know I have absolutely NO expertise in interior design. But, yeah, think like that – you could hire a very expensive designer who would charge a whole lot of money to order expensive fabrics and oversee custom-made goods, etc. Or you could hire someone who specializes in staging and is in and out of your life quickly.

24

YDS, I understand. :slight_smile: I’m somewhat tech-challenged myself; I gladly leave that aspect to other people on whom I rely. But, if I can manage Quicken, you can too. If you are organized, you can keep up with paper record-keeping and files, but they get cumbersome. But, it will help you going forward if you can automate.

Another thing that helps track expenses (both my H and I do this): we each have a credit card that we use exclusively for business travel and all work-related charges. If you can get another card and do this, that’s half the work.

25

I used Quickbook, IIRC, not Quicken. It also helped me create logo for my S corp too, not such expense and account receivable.

26

Good luck. I have a very very strong hunch on what this venture is. If my hunch is correct, this does not require a lot of cash to start out with. AttorneyMother’s recommendation is however spot on. I think this should be seamless for you.

27

I’m glad eyemamom remembered. If you want to conduct business using a separate Tax I.D. number, you can easily apply for one online here:

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-%28EIN%29-Online