/Tag:LLC

So You Want To Start An Accounting Firm? Here’s What You Need To Know.

If you’re a CPA, making the transition from working for someone else to being your own boss has probably crossed your mind. Self-employment offers an opportunity to have more control over your own schedule, allowing you to better balance your professional endeavors and personal life. It also enables you to manage your firm the way you want to manage it. Indeed, there are some attractive perks to starting your own accounting firm. There are also a lot of things to consider and accomplish in the process.

Think It Through

Before you move forward with launching your own business, make sure self-employment is the right choice for you. It doesn’t suit everyone, and it’s best to discover that before you devote time and money to the cause. Ask yourself:

  • What is motivating you to be a business owner? 

Think carefully about what’s driving your decision. If your motivation comes from the inability to deal with your boss or your coworkers, you might want to reconsider. When you have your own business, you’ll need to find ways to work harmoniously with many different people. Not all of them will be easy to get along with. Realize that starting a business won’t enable you to avoid interpersonal challenges.

  • Are you OK with assuming some risk? 

Starting a business comes with initially forfeiting a steady paycheck and paid vacation time. And with no employer-paid health insurance, you need to seek and pay for that necessity on your own. If your business doesn’t succeed or doesn’t grow as quickly as you anticipate, you might face some financial hardships. Are you willing and able to accept that?

  • Do you have enough capital to get started?

Many new businesses fail in their first few years of operation because they don’t have enough initial capital. Be realistic about your financing. Generally, it’s best to have enough money available to support yourself for at least six months to a year as your business becomes established.

  • Are you self-disciplined and driven? 

One of the biggest changes you’ll experience in going from employee to self-employed is holding yourself accountable for your work. With no boss to give you assignments and check in about their status, you need to keep yourself on track. You’ll need to be self-motivated and organized—your business success will depend on that.

  • Are you prepared to handle all the aspects of running a business? 

As a business owner, you’ll do more than just accounting work for your clients. You’ll wear many hats as you manage your business. Marketing your company, qualifying leads, negotiating contracts, dealing with IT issues…it all falls on you—at least in the beginning stages of your business.

If after that exercise you decide you want to pursue starting your own accounting firm, I expect you’re wondering, “Where do I go from here?”

To legitimately launch your business, here’s an overview of the seven legal steps to get there:

1. Select a business name

Think about whether you want to market your business using your own name (e.g., “Jane Smith, Accountant”) or create a business name (e.g., “Accounting You Can Count On”). As a solopreneur accountant, you might opt to use your own name because you and your brand are one in the same. On the other hand, choosing a business name might help you be perceived as well-established and experienced.

If you go with a business name, make sure it is available to use before you start printing it on business cards and other marketing materials. Check to see if the name is available in the state where you’re planning to operate your business by checking with your state’s secretary of state office. We have a free business name search tool here at CorpNet that can help, as well.

Also check to see if the domain name for your business is available (e.g., accountingyoucancounton.com). Sites like GoDaddy.com will let you instantly find out if there’s a suitable domain, and they will offer suggestions for alternate names if the one you want is already taken.

No one in your state is using the name you want? Excellent! Next, you’ll want to search the U.S. Patent and Trademark Office to see if anyone has a pending request for or has successfully registered a trademark for the name. Don’t skip this step because you’ll land in legal hot water if you infringe on another company’s trademark.

2. Choose a legal structure and register your business.

The business structure you choose will affect your business from both legal and tax standpoints. Solo accountants and small firms often choose to register as an LLC (Limited Liability Company), PLLC (Professional Limited Liability Company), or PC (Professional Corporation). As state constructs, these business entities are subject to different rules in different states. You can find the specific rules for accountants in your state via the CorpNet website or you can call the Secretary of State’s office in your state to get the details you need.

3. Obtain the licenses and permits you’ll need.

Regardless of which state you’re operating your business in, you’ll need some form of licensing to provide public accounting services. You will need to hold a CPA license and your firm may need a public accountancy license. To determine the requirements in your state, check with your State Board of Accountancy.

Besides CPA accreditation you may also need other state and local municipality permits, as well. They might include a general business operation license, a signage permit, and possibly a home occupation permit (if you’re operating your business from home. CorpNet can help you determine the license and permit requirements applicable to you, or you can check with your local government office.

4. Apply for a Tax ID Number

Also called a Federal EIN (Employer Identification Number), this allows the IRS to track your business’s transactions. LLCs and corporations are required to have an EIN and many banks will require that you have one before they’ll allow you to open a business bank account.

5. Open a bank account exclusively for your business.

It’s important to keep your personal and business finances separate—for both legal and tax purposes. In fact, that separation is mandatory for LLCs and corporations. After you’ve registered your business with the state and have your Tax ID number, you will have the information you need to open a business bank account.

6. Get insurance to protect your business.

Even though officially forming an LLC or incorporating your business will help to lower your personal liability related to business debt and lawsuits against associates, it will not protect your personal assets if action is brought against you due to your own actions. That’s why it’s a good idea to consider getting an insurance policy for peace of mind. Talk with a knowledgeable and trustworthy insurance agent who understands the needs of accountants and other businesses in the financial services industry. A reliable agent can guide you to the type of coverage that will best protect you, such as a Business Owner’s Policy (BOP), Professional Liability, Insurance, Data Breach Coverage, or others.

7. Know your business compliance responsibilities.

Registering your business is just the beginning. LLCs and corporations have ongoing requirements to keep their businesses in good standing. For example, most states require LLCs and PLLCs to file an annual report each year and show proof of a valid certification. Corporations have more corporate compliance responsibilities. Besides annual reports, they must conduct annual meetings, prepare meeting minutes, and meet other compliance requirements.

I know it can be tough to keep up with everything that’s required and when it’s due, so I recommend using the CorpNet B.I.Z. (Business Information Zone) compliance tool. It’s a free monitoring tool that can help you stay on top of your state filings and fees due throughout the year.

The steps to starting an accounting business aren’t overly complex. To make sure you launch your business on solid legal ground, you’ll want to make sure you do it right. Consider talking with a legal professional who can guide you and look to CorpNet to ensure your business forms and filings are done accurately and on time.

If you want more detail about launching your accounting business, join me on Thursday, May 4, 2017 at 11 a.m. Pacific Time for CPAacademy.org’s upcoming webinar, “Steps to Start Your Accounting Firm.” Registration is required, so sign up today!

Annual Reports – FAQs

Happy March! This month, we’re discussing Annual Reports and why they are pertinent to your business.

Q: What is an Annual Report?
A: Also known as a Statement of Information, the Annual Report essentially keeps the state up to date with your company’s vital information. For example, you may be asked to submit information about directors and officers, and the registered agent and office address of the company, especially if any of this has changed in the last year. In most states, there’s also a small filing fee associated with the report.

Q: Do I need to file an annual report for an LLC?
A: While an LLC involves significantly less formal administration than a corporation, LLCs are still required to file an Annual Report in most states. Not every state requires an Annual Report – and each state has its own rules on how often and when the report must be paid. The first thing to do is to understand the requirements for your state; you can either contact your secretary of state office or sign up for CorpNet’s free B.I.Z. service. B.I.Z. is free to any small business (whether you incorporated through CorpNet or not) and sends you alerts for any upcoming deadlines.

Q: What are the consequences for failing to file an annual report when required?
A: Missing an Annual Report deadline can result in late penalties and fees, and who wants to pay money unnecessarily? In the worst case scenario, your company can be suspended or dissolved.

Do you need help filing an annual report or have questions regarding the process? Call the CorpNet.com team today for a free business consultation at: 888.449.2638

S Corporation Election Deadline Is Almost Here: What Startups And Existing Businesses Need To Know

If you’ve legally established your business as a C Corporation or Limited Liability Company (LLC) that has elected to be viewed as a corporation for tax purposes, you have the option of filing IRS Form 2553 to get S Corporation tax treatment.

Why would you want to do so, you ask? Because it could make a big impact on your business’s bottom line.

The Potential Advantage for LLCs

LLC owners who find themselves with a high self-employment tax burden might benefit from choosing the S Corp election. LLCs are normally taxed like sole proprietorships—with all business profits subject to self-employment taxes. With S Corp tax treatment, self-employment taxes are only applied to wages and salaries rather than on all business profits.

The Potential Advantage for C Corporations

C Corporations can benefit from S Corp election because it avoids the costly double taxation C Corps normally face.

As a completely separate entity from its owners, a C Corp essentially pays taxes twice on its income:

1) When the corporation makes money, it files a tax return and pays taxes on those profits, and

2) If the corporation distributes profits to shareholders, those distributions get taxed again on the shareholders’ personal tax returns.

If a C Corporation opts to be treated as an S Corp for tax purposes, however, the business itself doesn’t file its own taxes. Instead, shareholders report their individual shares of the business’s profits and losses on their own personal tax returns.

For instance, if you’re an S Corporation shareholder with 50 percent ownership of the business, you would pay taxes on 50 percent of the profits. That income would be taxed as a profit distribution, and you might get a favorable tax rate. Note that you would also pay taxes on any income you received as wages and salaries (and that portion of your income would be subject to self-employment taxes).

Ultimately, the advantage of filing for S Corporation tax treatment comes from the fact that the corporation doesn’t pay taxes on its profits—all profits flow through to the individual shareholders’ tax returns.

Heads Up: The S Corporation Election Deadline Is Approaching

To make the S Corp election, you need to file Form 2553. If you want the election to be effective in the next tax year, you can file at any time during the tax year prior. If you’re filing in the year you want it to be effective, you must do so no more than two months and 15 days after the beginning of the tax year. According to the IRS, the “2-month period begins on the day of the month the tax year begins and ends with the close of the day before the numerically corresponding day of the second calendar month following that month. If there is no corresponding day, use the close of the last day of the calendar month.”

For existing C Corporations and LLCs, you have until March 21 to take the S Corp election for 2017.

New companies have 75 days from the date of their incorporation to file Form 2553. If they meet that deadline, they’ll receive S Corp tax treatment starting in their first tax year.

IRS Form 2553 provides additional detail about the filing deadlines and other important information, including S Corporation election eligibility restrictions.

Time Is Of The Essence For 2017

If you’re considering the S Corporation election for 2017, I recommend talking with a tax advisor to determine the potential impact it will have on your businesses tax obligations. If you find it is a great fit for your business, contact CorpNet as soon as possible to take care of filing your Form 2553 so you have the peace of mind it’s completed accurately. There’s still time (but not much!) to get it done before the deadline.

By | March 2nd, 2017|Other|0 Comments

Foreign Qualifying your Business – FAQs

Happy February! With winter now in full swing, we will be talking about a way to get away from the cold with Foreign Qualifying! This month, we discuss the opportunities of Foreign Qualification into another state and what the requirements are for those states.

 

Q: What is foreign qualification?

A: A corporation or LLC transacting business in a state(s) outside of their state of incorporation is typically required to foreign qualify in those other states.

 

Q: What constitutes transacting business in another state and when do I need to foreign qualify?

A: As examples, your company is considered to be transacting business in an additional state if…

  • You have a physical presence in the state
  • You have employees in the state
  • You accept orders in the state
  • You have a bank account in the state

State rules vary and this isn’t a complete list. If you have any questions about whether you need to foreign qualify in a state, you can speak with an attorney.

 

Q: If I incorporated in Delaware or Nevada (but don’t live/work there), does this mean I need to foreign qualify in my own state?

A: Delaware is often chosen as the state of incorporation, especially by larger companies, because it has the most developed and flexible corporate statutes in the country and is considered pro-business.  Nevada has also become popular because of its lack of state corporate income tax, franchise tax and personal income tax.  It also has relatively low fees.

However, if you incorporate out-of-state, such as in Delaware or in Nevada, but do much of your business in your home state, you will most likely need to foreign qualify in your own state. You will then be subject to the same fees, taxes and regulations as if you had incorporated there in the first place, and you will have paid filing fees (and, perhaps franchise taxes) to more than one state.

Example: If you have a small business and are going to be conducting a substantial amount of your business in California, it will likely be beneficial to incorporate in the state of California. If you incorporate out-of-state, such as in Delaware or in Nevada, but do much of your business in California, you will have to foreign qualify in the state of California. You will then be subject to the same fees, taxes and regulations as if you had incorporated in the California in the first place, and you will have paid state filing fees (and, perhaps franchise taxes) not only in the state of California but also to the state of Delaware or Nevada as well.

 

Q: What is the process to foreign qualify?

A: You will need to file a Certificate of Authority, which grants a foreign corporation/LLC permission to transact business in a state. In most cases, you will need to show a Certificate of Good Standing from your state of incorporation/formation in order to get a Certificate of Authority.

 

Do you have a question regarding Foreign Qualifications? Call the CorpNet.com team today for a free business consultation at: 888.449.2638

 

 

Nellie in the News – January 2017

Another month has flown by – 2017 is off to a great start for us in the CorpNet office! Our New Year’s resolutions are still going strong. How about you?

Our CEO, Nellie Akalp has been busy as always in the press letting you know the best ways to start your business and how CorpNet can help! Call us today to incorporate, Form an LLC, file a DBA or for your other business formation needs.

Here’s a recap of what was published in January!

Interviews & press Mentions

Small Business Trends – 10 Essential Ingredients of a Successful Business http://bit.ly/2kjz7ti

Fundera – 19 Entrepreneurs Still on the Worst Business Advice They’ve Received http://bit.ly/2i1EA5H

tech.co – 14 Entrepreneurs Share Their Biggest Business Mistakes http://bit.ly/2js47WO

Neshprint – Top 18 Business Experts to Follow on Twitter http://bit.ly/2jVWZm0

Expert Contributed Posts

AllBusiness – Is Your Business Ready for the New Year? Here’s a Handy Checklist http://bit.ly/2j55HL4

franchise.org – Finding the Right Legal Structure for your Franchise http://bit.ly/2iN2KQo

Secret Entourage – Thinking of Selling your Business? Do these Things First http://bit.ly/2j06RYO

Small Business Trends – Is it Time to Incorporate your Business in the New Year? http://bit.ly/2iVOAwm

Huffington Post – Five Ways to Bring More Authenticity To Your Social Media http://huff.to/2jrfgEc

CRE Online – What’s the Best Way to Structure Multiple Real Estate Investments? http://bit.ly/2j24TaP

Accounting Today – How to Help Your Clients Decide if They Should Incorporate or Form an LLC http://bit.ly/2ihDnEj

Mashable – What’s the Best Business Structure For a First Time Founder? http://on.mash.to/2jg88Oe

Entrepreneur – How to Keep Proper Corporate Records http://bit.ly/2iPJjEN

Entrepreneur – The Pros and Cons of Incorporating in Delaware http://bit.ly/2jiAmaO

AllBusiness – Five Things Seasoned Small Business Owners can Learn from Rookie Entrepreneurs http://bit.ly/2jSdfCF

 

 

 

By | February 1st, 2017|Nellie in the News, Other|0 Comments

What Every Small Business Should Know About 1099s

Every year when tax time rolls around, I field questions from business owners about whether or not they need to send 1099s to their vendors. As common as 1099 forms are, they remain one of the most misunderstood Internal Revenue Service (IRS) requirements.

To make sure you understand the circumstances under which the IRS requires issuing 1099-MISC forms to vendors, I’m going to provide some basic “must-know” information here.

What Is A Form 1099-MISC?

You must issue an IRS Form 1099-MISC to each person you’ve paid $600 or more in services (including parts and materials), prizes and awards, rents or other income payments. The 1099-MISC only applies to payments you made in doing business; it does not apply to payments made for personal purposes.

To Whom Do You Need To Send A Form 1099-MISC?

If your business paid more than $600 to a vendor or sub-contractor [individual, partnership, Limited Liability Company (LLC), Limited Partnership (LP), or estate], you are required to send a Form 1099-MISC to document what you paid them throughout the year. In general, anyone who worked for you—other than your employees—will need a 1099 from you.

Also, unless an exception applies to them, you need to issue a 1099 to your landlord if you are paying rent for business purposes. You must also issue a 1099-MISC to your attorney if you paid for legal services that amounted to more than $600 during the year.

Are There Any Exceptions?

There are. The list is rather long, but most commonly these types of vendors do not get 1099-MISC forms:

Also, you don’t have to send 1099-MISC forms to vendors to whom you made your payments via a credit card, debit card, gift card, or a payment network like PayPal. The onus to report vendor compensation is on those payment companies.

How Do You Figure Out If A Vendor Needs A 1099 From You?

I recommend before you request vendors to do any work for you, ask them for a completed W-9 form. The W-9 will give you all the information you need for filing taxes. It supplies a vendor’s mailing information, Tax ID numbers, and business structure (so you’ll know if the vendor is incorporated or not and does or does not need a 1099).

When Is the Deadline To Send 1099s?

By January 31, 2017, you must do two things to comply with your 2016 tax year 1099 obligations:

  • Submit Form 1099 to each vendor (reflecting what you paid that vendor in 2016).
  • Submit a copy of the Forms 1099 you sent to each vendor, along with a Form 1096 that discloses in total what you paid to all vendors who received 1099s from you.

Make sure you check on your state’s rules, too. Some states require they also receive your 1099s.

What Happens If You Miss The Deadline? 

Sending the required 1099-MISC forms late (or not at all) could cost you. The penalties vary depending on how far past the deadline you wait to issue the forms. If your business had gross receipts of $5 million or less, the amount you’re smacked with could range anywhere $50 to $260 per form (for tax years 2016 and 2017). If you’re caught intentionally not providing a payee with a correct statement for tax year 2016, you could face a fine of $520 for each form not submitted (that amount will increase to $530 for tax year 2017).

Where Can You Get 1099 Forms?

Unfortunately, you cannot download 1099 Forms from the IRS website. You can, however, order them from the IRS site and have them mailed to you, or you can pick them up at an IRS service center, post office, or another location that supplies them.

Eliminate Headaches—Do It Right From The Start!

Whether you’re in the early stages of launching a startup or already running a small business, I recommend you talk with a tax professional who can share more details about 1099s and the other aspects of filing your tax returns.

Starting a business or ready to change your current business structure? Contact us about making the registration process hassle-free and as fast as possible. We’re here to handle all of your legal document filing needs!

Should You Buy A Business Or Start One From Scratch?

Hope your New Year is off to a great start! As you’re looking to make 2017 a year of prosperity, have you set your sights on becoming a business owner? If so, you’re probably wondering whether buying an existing business or starting your own company will offer the best chances of success.

Both have their advantages and challenges, so how do you choose? I wish there were an easy answer, but I’m afraid you’ll need to do some research and put some serious thought into your decision. As you explore your options, consider the following pros and cons of starting a business from scratch and buying an established one.

Pros Of Starting From Scratch
• You begin with a squeaky clean slate, establishing and building your brand reputation from Day 1.
• You build your team fresh and new, selecting the right people for the right positions.
• You create your workflows to maximize productivity, without having any inefficient past processes to “fix.”
• You choose and develop the products, services, and packages you’ll offer to your customers.
• You establish your pricing to ensure profitability from the start.
• You choose your business’s legal structure to ensure the degree of liability protection you need and the most favorable tax situation.

Pros Of Buying A Business
• You have customers and incoming revenue immediately.
• You have employees who already know how to do their jobs and don’t need training.
• You have built-in processes and systems to operate your business efficiently.
• Your services and products are already to market, and you have established sales channels to get them into customers’ hands.
• Your business is already registered and has the necessary permits and licenses to operate legally in your state.

Cons Of Starting From Scratch
• You do all the legwork, including researching the registration requirements to form an LLC or incorporate your business and filing your state, federal, and local paperwork to operate legally.
• You don’t know for certain that your business idea will be viable and sustainable.
• You have to develop and put into place all the internal systems and processes needed to operate your business.

Cons Of Buying A Business
• Existing employees may be resistant to accept your leadership.
• If you find processes aren’t working efficiently, it may be difficult to initiate change because everyone is used to doing things a certain way.
• You may discover the legal business structure the former owners selected isn’t ideal.
• You may find your brand’s reputation isn’t as positive as you’d like it to be—that might be difficult to turn around.

As you can see, there’s a lot to think about as you weigh the options of starting your own business or purchasing one that is already up and running. I advise you to do your homework before deciding which route to travel. And consider seeking the guidance of respected and reputable professionals (attorneys, accountants, business consultants, etc.) who can help you understand the financial and legal aspects of what’s involved.

Remember, whether you’re starting a business or opt to buy and run one that’s already established, CorpNet is here to assist you with all your business registration and compliance obligations. Contact us today to help you take care of your filings so you can take care of business!

 

 

Dos And Don’ts When Transferring Leadership Responsibilities: Lessons To Learn From Obama and Trump

Changes in leadership don’t always happen seamlessly—or amicably. As is evident with the imminent transfer of leadership from President Obama to President-Elect Donald Trump, many factors influence how smoothly (or not) a change in authority will happen.

Whether you’re taking over running a business or handing over the reins to your responsibilities to someone else, expect some bumps in the road. But be careful not to become a source of agitation and dissent through the process. This recent presidential election, which has been simultaneously entertaining and frustrating at times, can teach us some valuable lessons about what to do and what not to do during a leadership transition.

 

Lessons Learned From Obama and Trump: The Dos And Don’ts Of Changing Leaders

  • Don’t undermine the capabilities of either the incoming or outgoing leader.

If you’re the new boss in town, bad-mouthing the outgoing person in charge won’t sit well with those loyal to their incumbent leader. And if you’re the one passing the baton, lack of confidence in the new leader will create distrust and distract employees from performing to their potential. To minimize the stress your team may already be feeling over the change, resist the impulse to undercut the qualities and strengths of one another

  • Don’t expect everyone to be enamored with the change.

While some of your staff members might be excited about the new era ahead, you can bet others will be anxious, annoyed, or angry—possibly all three. Prepare to bear the brunt of their harsh criticism whether you’re the new leader or the one leaving your post.

  • Don’t underestimate the power of words.

I saw a quote online that really resonates with me, “Words are free. It’s how you use them that may cost you.” Keep this in mind as you navigate the challenges of handing over or accepting leadership responsibilities. Through this recent presidential election, we’ve seen how choosing and using words reactively can create animosity and negativity. Before speaking and before writing, pause to think about your words and choose them carefully before you share them with business colleagues, employees, vendors, customers, and the public at large.

  • Do show enthusiasm for continued progress toward common goals.

Find points of agreement where you and the other leader can demonstrate unity. Sure, you may not see eye to eye about plenty of things related to how the business should be run, but now isn’t the time to dwell on that. Your employees need to have some sense of consistency and common ground.

  • Do provide/accept information and insight to make the transition fluid.

As the outgoing leader, be cooperative by openly sharing essential information with the new leader so she can more adeptly step into your shoes. As the new leader, be open and receptive to the insight the outgoing leader has to share. Put ego aside and realize your predecessor has knowledge and experience that can help you lead more effectively.

 

Your Top Priority As A Leader

Both outgoing and incoming leaders have one thing in common: a job to do! Pointing fingers, making snarky remarks, and stirring up drama will only distract you from doing right by those who work in your business and those who do business with your company. If you keep that in mind through every step of the process, the transfer of leadership will go much more smoothly.

 

Remember, Corpnet.com is here to help leaders of businesses in all industries take care of the business filings needed to legally run their companies. Check out our FREE Corporate Compliance Tool, and contact us today about how we can save you time and money.

 

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By | January 13th, 2017|Corporate & Business Law, Entrepreneuring|0 Comments

To-Dos When Starting a Part-Time Business

So you’re not ready to quit your “day job,” but you want to start a business? Many entrepreneurs dip their toes to test the waters by launching their businesses part-time. In some ways, it’s the best of both worlds; you pursue your dream of business ownership while still bringing home a steady paycheck.

Although there are some considerations unique to starting a business part-time, you’ll find other aspects are the same as when starting a company full-time.

For example, you have to take the necessary steps to operate your business legally.

 

  1. Make sure you can legally use your business name.

Either check your state’s Secretary of State database or do a corporate name search to see if anyone else has registered the name you want. I also advise using CorpNet’s free trademark search tool to see if someone has already filed for a trademark on the name.

  1. Select a business structure.

By default, your business will be considered a sole proprietor unless you file for a different legal structure. Operating as a sole proprietorship offers simplicity, but it does not separate your personal and business finances and liabilities. That means if your business is sued, your personal assets might be in jeopardy.

I recommend considering formally registering your business by either forming an LLC (Limited Liability Company) or incorporating (C Corporation or S Corporation) to protect yourself. Doing so shields your personal assets from the liabilities of your company.

Before talking with an attorney for guidance, you can start learning about the advantages of different business structures by using CorpNet’s Business Structure Wizard.

Note that the different structures offer different taxation pros and cons, so I suggest also talking with an accounting or tax professional to explore which structure will work best for you in that respect.

  1. Register your business name.

When you form an LLC or incorporate your business in your state, registration of your name automatically happens. However, if you choose to operate as a sole proprietor and want to use a fictitious name for your company, you must register your business name by filing a Doing Business As (DBA). Don’t skip this step! It will allow you to operate your business under that name in your state and it will prevent other sole proprietors in your state from using that name.

  1. Get the licenses and permits you need.

Depending on the type of business you’re operating and where you’re located, you may have to secure licenses and permits to legally run your business. Federal, state, county, and/or local licenses and permits might apply to you. To avoid costly penalties and fines, research which permits and licenses you need to have to legally run your business.

 

Part-time Doesn’t Mean You Should Approach It Half-Heartedly.

Aside from the legal considerations in starting your part-time business, keep these things in mind, as well:

  • Know your limits.

There are only so many hours in each day, so carefully assess your capacity to work in and on your business before jumping in.

  • Make sure there’s no conflict of interest or legal restrictions.

Check with your employer about any rules that would prevent you from starting and operating your type of business while still on that company’s payroll.

  • Take it seriously.

Although you may still be working for someone else in your other job, you’ll need to give your part-time business serious time and energy if you ever want to make it a full-time endeavor.

 

Need Help Getting Your Part-time Startup Off The Ground?

If you’re planning to give part-time entrepreneurship a go, CorpNet is here to help you take care of all the business filings required to legally launch and run your business. Contact us today to make sure your part-time business has all of its registration paperwork submitted accurately and on time.

By | January 11th, 2017|Running A Small Business, Starting a Business|2 Comments