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.

Starting Your First Home Based Business

Written by Kirk Bannerman

Overrepparttar last few years I have helped thousands of people start their own home based businesses. Many of these folks have become quite successful and others, for various reasons, have failed to achieve success.

People starting out in their first home based business adventure almost always suffer information overload inrepparttar 116810 early stages of trying to get their business up and running. I often refer to this asrepparttar 116811 "taking a drink from a fire hose syndrome".

Forrepparttar 116812 first time home business entrepreneur there will be a great deal of "newness" to virtually all aspects of getting their business started. When you combine all of this "newness" along withrepparttar 116813 natural sense of excitement and eagerness, it is easy to understand how people can easily fall prey torepparttar 116814 feeling of being overwhelmed and lost.

To a degree,repparttar 116815 confusion/frustration/overload situation frequently encountered inrepparttar 116816 initial startup phase is often similar torepparttar 116817 old saying about trying to run before learning to walk.

The steepness (is that a word?) ofrepparttar 116818 learning curve depends not only uponrepparttar 116819 particular type of business that is being undertaken, but also uponrepparttar 116820 background and skills ofrepparttar 116821 person startingrepparttar 116822 business. In any event, when first starting out, people will usually try to move forward too quickly.

I caution people to come to grips with reality and to be realistic in their expectations. Far too many folks read advertisements that are hype and imply quick money, and lots of it, from a home-based business start-up. It will certainly take at least a year, and in some cases two to three years, before you should expect to begin to truly make a significant profit from your business.

Cont'd on page 2 ==> © 2005
Terms of Use