Running your own business is the American dream. What some people don't realize is running a business can be scary which could leave your business as a potential flight risk. After running a successful small business for five years, here are some tips that will help your business stay grounded.
After you have gotten your business plan in place, it is important to make your business legal for two reasons. One is to protect the business from other people trying to copy your idea. The other one protects you financially and credit wise if your business goes under. There are several different ways to make your business legal. You can be a corporation, a sole proprietor, a partnership, or a cooperative. Do some research to find out what category your business fits under and apply for one today.
After you have made your business legal, the next step is to file for a tax ID in your state. To get a tax ID, simply do an internet search for your state's government website. Most of the time you can apply online and have your business registered with in a day or two.
When I first started my small business, I had no clue that I needed to report and pay my sales taxes on a monthly basis. For some reason I assumed I could pay and calculate it all at the same time when I did my personal taxes. This is not the case, you will have to file and report each month on your sales taxes. All states make it easy by allowing you to submit, file and pay for your sales taxes online each month.
One of the most important aspects of running a good business is finding a good CPA. They might cost a little bit of money each year, but in the long run are a vital part to the health of your business. They can help you find what expenses are tax write offs, what are the best practices for budgeting and how to control your monthly income.
If you are just starting out with your new business, the more customers you can find the better. Be careful in the beginning with how much you spend on advertising. Some people will try and go overboard with spending too much money that they don't have on advertising. In the beginning start out by using free advertising. Free advertising can be found through word of mouth, using a website or blog, using social networks such as Facebook and twitter and posting on classified sites such a craigslist.
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