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Structuring Your Small Business – A Crash Course

Topic: Business Management,Growing Your Business,How-to,Managing Your Business,Small Business Tech Recs,Starting Your Business | Comments Off on Structuring Your Small Business – A Crash Course

Posted on March 9, 2012 by workingpoint

When considering entrepreneurship, it’s important to consider how your business will take shape. Recently, LLCs have gained popularity, as the structure allows for less personal responsibility and more protection. While an LLC provides a great deal of flexibility, its disadvantages include careful records-keeping, significant paperwork, and cost of implementation. And for all you West-Coasters, it should also be noted that the state of California levies a franchise tax on all LLCs and does not allow LLCs to offer licensed professional services – this includes architects, landscape architects, chiropractors, lawyers, accountants, etc. If you’re currently weighing your options or just looking to restructure, LegalZoom does a good job of outlining the advantages and disadvantages of an LLC compared to a sole-proprietorship.

Once you’ve determined the legal structure of your business, you’ll need to go through the steps of registering. For LLCs and partnerships, you’ll have to file with the state in which you’re doing business. If you’re establishing a sole proprietorship, however, you won’t need to register at the state level (though most states require you to use your own name for the business unless you a file a Doing Business As (DBA) name, trade name or fictitious name).
A thorough explanation of how to register the name of your business can be found here.
Next steps (also known as the “not-so-fun stuff”) include obtaining your federal and state tax IDs and applying for the specific licenses and permits required for your business. The good news is that there are plenty of resources to walk you through this process. The US Small Business Administration provides a step-by-step list, replete with links, to guide you on your way.
EIther way – if you’re just starting off, or already up and running, WorkingPoint is here to help support your business.

As always please send us any questions or comments.

Thanks and good luck!!!

The WorkingPoint Team

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