Essential Tips for Existing Small Business Owners and Start Ups

.     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. Next- More Quick Vital Tips