On Real Estate & More – July 2021

Walking through our sweet town of Jacksonville, there was a cute little cottage that caught my eye. After many months of discussion with the owner, my husband and I decided to take the plunge and start our own business. We purchased that cottage property, and as of writing this article, are in the middle of learning how to run an Airbnb! While starting your own business is exciting, there are also a lot of things you need to take into consideration before taking on such a big move. Taking things one step at a time and understanding how to start a business will keep you on track and allow you to make the best decisions possible. Here are a few suggestions:

Research the Market—Take a step back and look at the business you want to start. Is there a market for your product or service? Who are your potential customers or clients, and how will they find you? Who is your competition, and what can you do differently or better? Bounce your ideas off some other business owners and see what they say.

Write a Business Plan—You will need to create a business plan so that you can work through important questions and become fully prepared for what is ahead. Be sure to carefully describe who are you selling or marketing to and how you will reach them.

You should plan out your projected expenses and profits and map out the types of employees, inventory, and equipment you will need to start a small business. While the business plan is meant to help you think through and plan your company, it is also a document you can provide to potential investors or lenders to help them evaluate your business.

Run the Numbers—You can’t start a business without cash. Figure out how much money it will take to get your business up and running, and how much you will need to stay in operation until you make a profit. If you don’t have enough cash, explore ways to finance your business, which may include securing a bank loan or Small Business Administration loan, or soliciting family and friends.

Get Legal Advice—Attorneys help you manage the risks of being a business owner. An attorney can advise you on whether your business should be a corporation, an LLC, or something else. An attorney can define your relationship with your co-owners, review leases, and set you up with the right kinds of contracts and forms. And your attorney is someone you can call with additional questions after your business is up and running.

Choose a Great Name—This is one of the more fun steps. A good business name is unique, memorable, easy to pronounce, and complies with your state’s rules on business names. Also consider how the name will transfer to online uses, including social media.

Form Your Business—This means filing paperwork with the state and paying a fee so that your business is official.

Get a Tax ID Number—Most businesses are required to have a Federal Tax ID Number, also known as an EIN. You can apply for one on the Internal Revenue Service website, or you can get your tax ID number as part of a business formation package.

Open a Business Bank Account—Search banks in your area for business accounts with low fees and/or bonuses for signing up and a business credit card. Don’t use your personal bank account for your business banking. You’ll have a mess at tax time, and you could invalidate the liability protection you get from having a corporation or LLC.

Talk to an Accountant—Don’t wait until your first tax return is due to talk to an accountant. A good accountant can advise you on the best tax filing status for your business, help you stay on top of deadlines, and answer questions you may have about business deductions, payroll, and state and local taxes.

Check with Your State Taxation Department—You may need to open an account for sales tax, payroll taxes, and any other taxes your state collects.

Business Licenses and Permits—There may be local business licenses, permits, parking district fees, or tax accounts that  are required for your business. You can contact your city or county to find out what’s required in your industry.

Payroll for Employees and Insurance—If you have employees, many small businesses use payroll services to simplify the process and make sure everything is done right. You will also want to talk with your insurance company about insurance needs.

Get Rolling!—Owning a small business is an exciting journey. When you start with a good plan and a solid legal and financial foundation, you’ll be setting yourself up for success.