Starting A Business (1 - 3)

Written by Michael Herman

Starting a Business - (1 - 3)

Depending onrepparttar reason for you to start a business, a retail store, an Internet store, a service business, a home based business or any other kind.

If you're like I was, you have lots of questions:

- Business licenses, or permits, what do I need? - Form of entity? What shouldrepparttar 116812 business be, A sole proprietorship, partnership, Corporation, etc?


- Accounting or bookkeeping, what should I do?

I struggled to find answers to my questions and I was surprised that there were very few web sites provided merepparttar 116813 information I needed.

I spent hours and hours onrepparttar 116814 computer searching for information on starting a business.

I was often frustrated by what I found regarding,repparttar 116815 licenses I needed,repparttar 116816 form of business entity most appropriate andrepparttar 116817 accounting or bookkeeping software most suitable to me.

I hope to be able to save you fromrepparttar 116818 frustrations which plagued me.

Licenses and permits?

What licenses and permits apply me, orrepparttar 116819 business, when I start a business?

Most businesses, especially business that involve selling products, require a State Tax ID.

In my state applying for and obtaining a “Sellers Permit” also provides you with a Tax ID.

The way that you obtain a State Tax ID may be different forrepparttar 116820 state, province, or country that you are in.

After a lot of searchingrepparttar 116821 Internet, I finally foundrepparttar 116822 information I needed.

Unfortunately it took me hours and hours ‘glued’ to my monitor,repparttar 116823 phone book andrepparttar 116824 phone.

The site that I found, showed merepparttar 116825 city, county, state, licenses and permits I would need.

Starting A Business (2 - 3)

Written by Michael Herman

Starting a Business - (2 - 3)

When we last met, I went over some ofrepparttar need for licenses and permits, as well as how to locate which one are right for you.

You may already have a plan andrepparttar 116811 form of your business entity set and if you do great, if not, I'd like to share a few things with you.

Form of Entity?

All offer advantageous to you when you start a business, however there are disadvantageous too.

- Sole proprietorships arerepparttar 116812 most simple for a business owner.

A sole proprietor does not have to file a separate business tax return.

A Schedule C is attached to your 1040 and filed withrepparttar 116813 IRS.

Gains and losses fromrepparttar 116814 business are simply combined with other personal taxable items,

Disadvantages include having personal liability and lack of investment flexibility.

If you need cash you need to personally have it inrepparttar 116815 bank, or you can borrow it fromrepparttar 116816 bank.

- Partnerships are similar to sole proprietorships, in thatrepparttar 116817 formation is generally easy, however, you would be wise to use an attorney.

Alsorepparttar 116818 taxes are simply passed through torepparttar 116819 individuals personal tax returns.

The disadvantages arerepparttar 116820 same as being a sole proprietor, personal liability and lack of investment flexibility.

- Limited Liability Corporations (LLC’s) do much better in limiting your liability, asrepparttar 116821 name implies.

Disadvantages includerepparttar 116822 costs of setting up.

Federal limits on who and what are able to be LLC’s andrepparttar 116823 tax implications both federal and state.

- Corporations offerrepparttar 116824 most personal and asset protection and haverepparttar 116825 greatest flexibility of any business entity.

Corporations vary in their structure and organization.

A corporation is not just a corporation.

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