A Beginner’s Guide To Starting Your Own Business
A passion for following one’s dreams and making a difference in the world has always been the driving force behind people starting businesses. The idea of building a community or giving back also arises when considering new business ventures, as does the prospect of finding true meaning and purpose in a career.
However, the services of a qualified and experienced CPA are vital as they can assist in the correct steps to take and show you what to watch out for on your journey to creating a business that is beneficial to all involved. They can help you evaluate your business model, and marketing strategies, in getting financial raises, saving tax on investments, and much more.
To help you on your path to business success, the experts at Wesley R Howell CPA have put together a beginner’s guide to starting your own business that will hopefully make things easier.
Hire a Certified Public Accountant: Right from the word go, hiring a Certified Public Accountant gives you the advantage of guidance and will help prevent costly mistakes that can damage a business’s bottom line.
Create a business plan: This will help you organize your thoughts and visualize how your business will proceed. You need to figure out your start-up costs, the ins and outs of the industry you want to enter, an estimate of revenue for the first through the fifth year, and other aspects of business such as company description, financial plan, and projections. With this being complex, a knowledgeable CPA to assist you will be highly beneficial.
With your lawyer and CPA, decide on a structure: Selecting a business structure is one of the most important decisions business owners make, with vast implications for their financial success. The primary purpose of such a structure is to help the organization work toward its goals. Your business structure will depend on the activity the business is engaged in and the possibility of liability.
If there is the possibility for liability (customers come to your location, customer’s assets may be at some risk, etc.), an LLC or Corporation should be set up. If there is no risk and sales, to begin with, are expected to be small or perhaps a loss, then a sole proprietorship can be used.
Advice From The Pros
Create a separate business bank account and keep all business financial activity separate from personal. Additionally, we advise you to work closely with your CPA. Depending on the size and type of activity, a business attorney might also be a good idea.
A word for the wise, keep copies of all receipts. And, if sales tax is involved, do not neglect this. The Department of Revenue is not very forgiving. Be sure to have a sound business plan and talk with a CPA before making any investments in the business.
At W R Howell, CPA, our goal is to exceed your expectations. We provide personal, professional tax and accounting that help businesses and individuals minimize their tax liability and maximize their potential. Our owner, Wesley R. Howell, has been a CPA since 1994 and provides services to a wide range of clients, including individuals and businesses in various industries.
Get in touch with us today!