So, you’re thinking about starting your own business? But you feel extremely overwhelmed and don’t know where to start?
Don’t worry – every business owner has gone through the same experience as you, me included. While it can seem overwhelming at first, if you break the process down step-by-step, it’s not as daunting as it seems.
These are some of the basic steps you need to follow when starting your own business:
1. Talk to your accountant about the right business entity for you.
There are quite a few business entities to choose from which can just add to your confusion:
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
Limited Partnership (LP)
So which one are you supposed to choose for your business? Your accountant will be able to tell you which business entity will best suit your tax needs.
This is a very important step, so don’t skip it because you don’t want to pay for your accountant’s time – the IRS will end up coming back to haunt you in the future!
2. Consult an attorney about your business entity as well.
The entity your accountant chooses for your business might be best for your tax needs, but will it also protect you from any future legal liabilities? Will your family’s home and assets be protected from any future lawsuits?
It’s very important to discuss this matter with an attorney to make sure you and your assets will be protected from any future legal claims filed against your company. So many people make the mistake of not consulting an attorney because they just don’t want to spend the money on one. Then – WHAM! – the business gets sued and they stand to lose everything they worked so hard for. By this time, it’s usually way too late for an attorney to help out.