| As an entrepreneur planning on starting a small | | | | (IRS) for tax purposes. Think of it as your business' |
| business, it is essential for you to understand all the | | | | social security number. The IRS provides information |
| paperwork that needs to be done. This is critical in | | | | about the circumstances under which an EIN is |
| order to get the business up and running quickly and | | | | required. Should your business need one, the person |
| functioning smoothly thereafter. This piece serves as a | | | | who is helping you with the process of incorporation |
| road map for starting a small business. | | | | can take care of this as well. |
| You've got dreams in your eyes and a thousand things | | | | Open a bank account: Once the official entity is |
| on your mind. Business planning, customer acquisition, | | | | created, open a bank account exclusively for your |
| financial projections... these are but a few of the issues | | | | business. This helps you to separate business and |
| that you're grappling with. In the midst of all this, the last | | | | personal finances and facilitates the audit of business |
| thing you need is to get bogged down by mindless | | | | accounts. |
| paperwork and dull regulations. However, the truth is | | | | Finalize accountant services: You will need to maintain |
| that inadequate attention to such issues have been | | | | detailed accounts throughout the course of your |
| many a business' undoing. You need to take care of all | | | | business. While a bookkeeper can help with routine |
| those mandatory requirements in order to turn that | | | | accounting needs, it is advised to use the services of a |
| dream into reality. | | | | qualified Certified Public Accountant (CPA) for financial |
| The following is a quick checklist of the procedural and | | | | advice and tax planning. Always ensure that you have |
| statutory issues that you need to deal with while | | | | a grip on the financial health of your business - a |
| starting a small business. | | | | regular review of accounts statements is a sound |
| Select a structure: You must evaluate the pros and | | | | practice. |
| cons of different types of business structures before | | | | Software programs such as "QuickBooks" can help |
| deciding what's best for you. Since you are planning to | | | | ease the process of maintaining accounts. |
| start a small business, the most likely choice is | | | | Get a legal and tax adviser: Business taxation laws |
| between a sole proprietorship and a partnership deal. | | | | are very complex. While starting a small business, you |
| While these are the easiest to get off the ground, | | | | will need to understand the impact of various tax |
| there is a higher element of personal liability. | | | | systems on your company. Hire a CPA to help you |
| Incorporate your company: Your business becomes an | | | | find the way through such laws. This is of utmost |
| official entity through the process of incorporation. You | | | | importance as you are obligated to fulfill tax |
| may need to decide where you want to incorporate | | | | responsibilities. |
| because different states have different laws that may | | | | In addition, you will certainly have some legal |
| be beneficial or unfavorable. Incidentally, Delaware, | | | | considerations like copyrights, contracts and |
| Nevada and Florida are three of the most popular | | | | agreements. A legal firm will advise you on such |
| states. | | | | aspects when starting a small business. |
| These days, incorporation is a relatively simple process | | | | If you'd like to explore these issues further, "The |
| and can even be done online. Also, there are a number | | | | Business Side of Creativity" from might serve as a |
| of specialists who can help you with this. | | | | useful reference. Of course, you'll need to follow that |
| Get an Employer Identification Number (EIN): This is a | | | | up with a team of professional advisers at the time of |
| number provided by the Internal Revenue Service | | | | actual start-up. |