How and when to create a legal entity
Speak to an accountant or an attorney to guide you in selecting the right legal entity, taking into consideration your long term goals. (It takes only a few hours to be in business legally.
Make a decision but do not file with the state in which you are located or the IRS until you are ready to move ahead. (You can even apply for a loan with an understanding they the entity will be formed prior to funding.)
For Start Ups- Select an industry with long term potential
Consider an industry that will not be displaced by online businesses and robotics in the near future. i.e. -service related businesses, many of which are in the health care field, food services, data collection services. In addition, there will be a strong demand for environmental engineers.
Establish business credit
Obtain a business credit card; preferably from a bank that is familiar with your industry and can provide the services you need for the growth of your business.
Try to keep your business interests separate from your personal interests. This is the best way to establish credit for your business and not rely solely on personal credit.
Good record keeping- A requisite
Set up appropriate record keeping procedures. Are you comfortable in the cloud or do you want your own software. Spend some time setting up your chart of accounts with the assistance of a financial advisor.
Hiring- Employees or consultants
When hiring, consider whether you use third party consultants or employees.
The IRS has qualifying rules for consultants. If you hire employees consider which type for payroll services work to your advantage – DIY – Quickbooks – ADP/Paychecx or Payrolling. Payrolling is a service that handles all payroll issues. The employee is employed by the payroll company and your company contracts for the services of the payroll company.
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About the author
Marjorie Weber has been educating entrepreneurs and guiding them in their search for capital for the past 16 years: combining business training programs with one-on-one mentoring. Marj is currently a financial advisor for Florida SBDC at FIU. She was Chair of SCORE Miami Dade from 2010 to 2014. She also serves as an advisor to the Goldman Sachs 10,000 Small Business Program and the SBA Emerging Leaders Program and provides training for Veterans seeking an entrepreneurial path upon retirement from the service. She has been facilitating workshops under the auspices of Miami Bayside Foundation for the past 3 years. She commenced her career as a real estate investment banker in New York and Miami.She uses these long term relationships to assist her clients in accessing capital. She knows both the process and the people and has assisted in providing financing for hundreds of businesses in Miami Dade.