Starting your own business can be exciting yet daunting, especially if this is your first time. Many people succeed on their first try, but some people fail. But you shouldn’t get discouraged since we all experience failure, and that doesn’t mean that we need to give up.
In this article, I’ve rounded up the best financial advice for people who are starting their own business. Yes, you already have researched, but nothing is enough when it comes to learning. So, continue reading the information below to help you start up your own business.
1. Contacting Your State Government
The first thing that you need to do once you have decided to start a business is to contact the state government in your location. You need to find out if you need to fill up any forms so you can get ready. If you plan on selling something, they will require you to get a vendor’s license and register to submit the sales tax.
There are also some other registration processes that you need to do, including submitting and withholding income tax. Also, the town or city of the state that you live in may require a business license from you.
2. Read Any Applicable Laws
Now, you need to make sure to read any applicable laws and understand each of them. You may need to read the laws on worker’s compensation and the Occupational Safety and Health. Avoid putting your business at risk by not familiarizing yourself with these laws. Some of the other things that you need to know are tax filings, safety regulations, overtime, employing minors, hours worked, as well as hiring and firing your employees. You can get the help of a business lawyer.
3. Know Whether A Federal ID Number Is Needed
If you are planning to become a sole proprietor or if your business doesn’t have any employees, a Federal ID number may not be needed. But if you are an incorporated business or if you’re are going to hire employees, then you will need a Federal ID. You can go to the IRS website so you can download the required form.
4. Hire A CPA
Yes, it may be nice to file your tax returns, but since you are now going to start your own business, you may need some help. As a business owner, you will be handling an infinite number, and it will not be as simple anymore. So it would be best to hire a CPA to help you with your taxes.
Also, your CPA will be the one to prepare every annual tax return that you have. But make sure to also familiarize yourself with the other taxes, including the estimated self-employment taxes and income taxes so you can avoid penalties.
If you want to prepare your tax, make sure that you do it the right way. There are now computer programs that can help you with your tax. But if you find it difficult to handle, a CPA will surely do the trick.
5. Open A Business Account
You may already have a personal bank account, but you need to open one for your business. Yes, no matter how small your business is, opening a separate bank for it will help you organize the money from your business. Even if your business is not yet getting enough earnings, a separate bank account is required. In this way, you won’t be mixing your personal and business money.
These are the most important financial advice that you should familiarize yourself with once you decide to start your own business. These things will help you with the initial steps to ensure that you’re on the right track.
Based on Materials from: The Balances MB
Photo Sources: Iamexpat, Business Journals, Blue Tree Web, Inc.com