Guest post by Gloria Martinez
Things You Can Do To Tackle the Mundane Tasks of Starting a New Business
Chances are you started a business because you are passionate about a topic or skilled in a specific area. If you are like most entrepreneurs, your area of expertise isn’t actually running a business. Lacking management skills is no excuse for a poorly structured or operated company, however. Following a few logical steps provided by Professional Global Etiquette can help you get past the more tedious aspects of starting your new business.
Decide on an Organizational Structure
This should be one of the very first things you take on when starting a new business. The legal structure you choose will influence a lot of other decisions, such as how you handle finances and what forms you need to file with state and federal agencies. It can even impact the type of insurance you need to purchase.
While there are numerous legal structures you might consider, the four most common choices include:
Sole Proprietorship: This is one of the most common — and simplest — ways to organize a small business. However, it does require the owner to assume personal liability for business debts and risks.
Partnership: Similar to a sole proprietorship, a partnership has more than one person in an ownership capacity.
Corporation: Even small businesses can benefit from some of the advantagesafforded by incorporating. These include tax advantages, unlimited life of the company (it will exist even when the owner passes away), and usually easier access to capital.
Limited Liability Company: An LLC may provide tax advantages while also conferring liability protection to owners. Benefits of forming an LLC include less required paperwork and more flexibility in profit sharing, according to Entrepreneur.
Prepare Legal Filings
Once you decide how you will structure your business, you need to file the appropriate paperwork. That will usually include registering the name with a state or local office. You may also need to request an employer identification number from the IRS. In some situations, it is beneficial to get an EIN even if it is not required.
Put Your Finances in Order
Proper record keeping will help facilitate tax filings and reporting to oversight agencies down the road. It can also give you a realistic picture of how the business is doing as you move forward.
There are other advantages to maintaining accurate and detailed financial records. If you decide to pursue additional funding, those records will be an invaluable resource. They also make meeting your existing financial obligations easier to manage.
Entrepreneurs often decide to do a sizeable portion of their bookkeeping. It can be a perfectly suitable option, especially with the myriad software packages available to streamline the process. Be sure any programs you utilize fully meet your needs. For example, a payroll app can cover everything from time tracking to scheduling direct deposits and automating tax processes. Tax penalty protection is another nice feature to look for.
Get Help Where Needed
Even when you can perform the work yourself, there are times when it makes more sense to hire a professional. If paperwork is keeping you from effectively building your business or developing new ideas, you may be better off outsourcing some of the more mundane tasks so you can focus on what matters to you.
There are numerous things to tackle before you get a new business off the ground. Start with the basics by choosing and establishing an appropriate legal structure. Once you have filed the appropriate paperwork, take steps to maintain accurate and detailed financial records. Remember that help is available for tasks that you are unable or unwilling to perform.