Depending on 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 should business be, A sole proprietorship, partnership, Corporation, etc?

And

- 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 me information I needed.

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

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

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

Licenses and permits?

What licenses and permits apply me, or 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 for state, province, or country that you are in.

After a lot of searching Internet, I finally found information I needed.

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

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

You may already have a plan and 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 are 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 with IRS.

Gains and losses from 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 in bank, or you can borrow it from bank.

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

Also taxes are simply passed through to individuals personal tax returns.

The disadvantages are 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, as name implies.

Disadvantages include costs of setting up.

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

- Corporations offer most personal and asset protection and have greatest flexibility of any business entity.

Corporations vary in their structure and organization.