These Are the Things That Every New Business Owner Must Know
you have decided to start your own business? You choose this direction because of the following reasons.
You want to be your own boss?
You want to be in control of your own professional Journey?
It sounds very tempting and many people do it successfully, but there are a few things you should know before you give up your job and a fixed income to become a business owner.
Table of Contents
Financial Advice for New Generation Entrepreneurs
Let's accept that you've already done the homework, learned what it takes to be successful at owning your own business, connected with other small business owners, mentors and advisors, and determined that you have the necessary knowledge and personality to be successful in your own, and can live without the certainty of a fixed income.
With those crucial and critical steps out of the way, let's step right into some of the basic financial issues of owning your own business and the financial advice that every business owner should have.
1. Create your Business Banking Accounts
Though at first, this piece of small business financial instruction may seem elementary, you would be surprised that there are many business owners started not just out of someone's garage or basement, but out of a personal bank account. Even before your business really gets profitable, set up a separate business banking account. Never mix your business and personal accounts.
2. Consult a CA or Professional tax advisor
Might be up until now you've always filed your own tax returns. That may have been well and simple enough before, but being a business owner comes with what can feel like an endless number of tax implications and benefits. It is a guarantee that your taxes will never be as modest as they once were, so it is best to consult a CA or professional advisor.
Find an accountant to prepare your annual tax returns, give you tax planning advice, and other business advice. You will also want to be aware with estimated taxes. Its mandatory to file quarterly estimated income taxes and self-employment taxes to avoid penalties at the end of the year.
In addition to consulting your accountant, you can also contact your State Income Tax Department for forms and directions.
You can choose available software in the market like Zoho (depending on what kind of business you're running), you could save lots of money by having a tax advisor.
3. Consult an Insurance Agent
You likely are having car insurance and homeowners or renters insurance to protect some of your largest personal fixed assets. Once you are into a business, it's also important to protect the business assets as well. The easiest thing to do if you already have a good personal relationship with an insurance agent is to simply let them know your new situation. If you're operating a business from your home, for instance, at the very rear chance you may need a rider to cover computer equipment used in your business. If your business involves inventory, you'll probably want it covered by insurance paid by the business. If you have employees, you'll also need workers' compensation insurance and liability insurance.
4. Contact Your State Government for Any Mandatory Form Filling
Once you've made your mind to start your business, you must contact your Secretary of State's office to find out if there are forms you need to file.
If you're selling a product, you might need a vendor's license and you'll also need to register to collect and submit sales tax. If you have employees, you'll need to register to withhold and submit income taxes to the state and Central government. You may also need licenses from the state or your city or town.
5. Determine If You Need a GST Number
If you're a sole proprietor (no employees) and are not incorporated, you maybe don't need a separate GST Number. But if you're incorporated you need a GST number to start with.
6. Familiarize Yourself with Applicable Laws
You'll need to teach yourself about laws that you'll be required to follow as a business owner, which may include OSHA (Occupational Safety and Health) regulations, Workers' Compensation laws, Unemployment Insurance, employment laws, etc.
Don't risk your business and your personal assets by being ignorant of laws governing hiring and firing, hours worked, employing minors, overtime, safety regulations, tax filings, etc. In order to get your facts straight from the start, it may even be worth a consultation with a business attorney.
7. Automate Your Accounting System
No matter how small your business is, you can benefit from automating your accounting. QuickBooks and Zoho are great systems for small businesses as they are user-friendly even for non-accountants and easy to use. You'll be in a better position to manage your business better with the reports generated by these software programs - and your employees will thank you!
Give your business a sharp edge start by building a good foundation with these basics for getting started in your own business.
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
BOOK A FREE CONSULTATION
Get help from an experienced legal adviser. Schedule your consultation at a time that works for you and it's absolutely FREE.