Congratulations! Owning your own business is exciting and rewarding. Page, Lobo, Costales and Preston APC would like to share some tips for starting up your own business.
Page, Lobo, Costales and Preston APC helps small businesses get setup legally and would like to share some questions and answers for all you entrepreneurs out there. If you are setting up a new business, call The Law Offices of Page, Lobo, Costales and Preston.
Q: What type of business entity should I setup my business as?
A: You can begin as a “sole proprietor” to start doing business. It is easy and inexpensive to start as a sole proprietor however there is no legal protection for your personal assets. This means you have no limit to your personal liability for business failures or mistakes. If you want to limit your liability, set your business up as a corporation instead.
Q: Do I need a Federal Tax ID number?
A: If your business is a corporation, an LLC or has employees you need a Federal Tax Identification Number. Even if you are a sole proprietor you might want to get an EIN. If you do not have one as a sole proprietor, you can use your social security number however an EIN is more professional and less risky than giving out your SSN.
Q: What is a resale license?
A: A resale license will enable your company to purchase goods or materials for manufacture or resale without paying sales tax.
Q: Do I need to file a fictitious business name?
A: If you use any name other than your own, you will need to file a “doing business as” name. This will enable the public to know who is actually operating the company.
Have questions about setting up your business? Call us to get answers: 951-461-2500.
Don’t let your business get caught up in a lawsuit.
Page, Lobo, Costales and Preston APC has a lot of experience with assisting businesses in legal matters and would like to share some tips to avoid a lawsuit as a business owner:
Be Safe – Of course accidents can happen but if you take the proper steps to avoid accidents you will be much better off. Keep areas where employees and customers walk safe and free of obstacles which can cause danger
Keep Things Documented – Creating a well drafted contract will help avoid misunderstandings and prevent lawsuits. Keep all emails, invoices, contracts and even telephone messages to resolve future problems.
Understand The Law – Make sure your business is not in violation of any property laws. Make sure no one else owns the trademark on your business name.
Protect Files – Make sure all your computer’s files are backed up. Files can also be lost and/or stolen and that can lead to legal action. Make sure they are protected.
Handbook – It is a good idea to create an employee handbook which contains all sensitive employment issues such as maternity leave, sick leave, compensation, termination, benefits, etc.
Hire A Lawyer – It is smart to have a lawyer hired for your business and to make sure you are in compliance while running your business. Call our offices for all your business needs!
The professionals at Page, Lobo, Costales and Preston would like to share some helpful financial tips you should know when getting a new business up and running:
Save up money before opening your doors. Unfortunately, it can take months or years to make a profit. Save up any needed investment money before you start your business. Even if you have plenty of business coming your way, you’ll want to invest that money back into the business for space, equipment, advertising and insurance needs.
When going into businessfor yourself, protect yourself so a creditor cannot go after your personal assets like your home and car to pay for any business debts. Consider forming a corporation or LLC if you will be running up large debts.
Open a separate bank account for your business. Any payments made to you by the business should be made as a paycheck written on the business account and deposited to your personal account. Just like an employer was paying you.
Understand your profit numbers and create a break-even analysis in your business plan. This will allow you determine what your start-up costs and your marketing strategies will be.
Make sure to put all your agreements in writing. This includes any lease or rental agreements, storage agreements, offer letters of employment and employment policies. It is a good idea to get in the habit of getting and giving receipts for all goods and services, regardless of how much.
Pay your businessbills on time. You will gain trust and build a positive credit profile. It is also important to pay your payroll taxes on time. The IRS and state tax authorities can hold you personally liable for these taxes as well as stiff penalties.
Have questions about starting a new business and want to make sure you are covered from any liabilities? Call Page, Lobo, Costales and Preston at 951-461-2500.