Starting A Small Business - Are You Ready?

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You have a great idea for a small business. You have a solid business plan. Your next step is to sort through the legal issues of starting a small business, but where do you start? Making informed decisions in the early stages sets you up for success from day one. The following list covers some of the legal aspects of starting a small business and how our New Small Business Filing Plan can get you on the right track without the headaches of paperwork. Click here to learn more about this service right now or read on to discover the legal aspects our services take care of for you!

What type of business are you forming?

There are a few options: sole proprietorships, general partnerships, limited liability companies (LLCs), and corporations. When selecting a business type, there are a few factors to consider, such as limiting your personal liability, tax treatment and benefits, and sale of interests in the business.

• A sole proprietorship leaves your personal assets at risk in the event of a lawsuit against your business, meaning that you could lose your home, your personal savings, and other assets.

• General partnerships can leave you with more risk because not only are you responsible for your own liability, but you are also responsible for certain actions by your partner(s).

• A Limited Liability Company structure can protect your personal assets and limits personal liability if your business ever gets sued or declares bankruptcy. This means that your personal home and other assets won't be at risk. With an LLC, you can file your taxes as part of your personal income, but you will probably have to pay self-employment tax.

• An S-Corp is a corporation that, for federal tax purposes, is treated as a pass-through entity, meaning that S-Corps are taxed under Subchapter S of the Internal Revenue Code (IRC), which is where the name “S-Corp” comes from. An S-Corp can issue stock, has governors (board of directors, officers, and shareholders). Owners of an S-Corp enjoy the same personal protection from liability as with a C-Corp; however, an S-Corp passes its income and loss through shareholders, eliminating the “double taxation” of having to pay taxes as both the owner and the company. Each shareholder is subject to his or her own individual tax rate on profits and losses passed through to him or her, recorded as net income on a tax return.

• A C-Corp creates a legal entity that is entirely separate from the owner(s). Structuring your business as a corporation provides the greatest level of personal protection from liability, but they are more expensive and complicated to form, and they file a separate income tax on their profits.

Should you form an LLC or a Corporation?

Depending on how you plan to deal with tax issues, record keeping, funding sources, ownership, and the physical location of your business, the best way to decide what type of entity best suits your new business is to consult an experienced business consultant or attorney.

Some businesses register in states other than where they are physically located for tax or regulatory reasons, but decisions like these should only be made after consulting with a professional who can walk you through these considerations with your specific business in mind. Registering out-of-state can end up being costly as you will still be required to register your business in the state or province where it is located, which may mean additional fees, taxes, and other costs.

Will you need specialized permits or licenses?

Registering your business is not the same as obtaining the necessary permits and licenses, and there may be local regulations in the county or city where your business is located to consider, as well. Some permits and licenses are only issued by the county or city, and you will need to know what permits and licenses you will need. An experienced business consultant or attorney should be able to take your specific situation into account to give you advice on what licenses and permits you will need to open your new small business.

Will you hire employees or use independent contractors?

Depending on your level of control over how, where, and when they work, the IRS determines whether your labor force are employees or contractors. Additionally, the number of employees is a factor in determining your company's taxes, as well as determining the healthcare and human resource regulations your business will have to provide. Understanding how these regulations may affect your business is another great reason to contact a professional for advice as you build your new small business.

If you want to start getting the paperwork for your startup handled quickly, easily, and conveniently so you can focus on your business, call (208) 755-8335 or email me at debbie@debbieaferguson.com

Click here to learn more about my New Small Business Filing Package!

Testimonials

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If you have ever had a problem with a neighbor, boss, creditor, bank, employee, or a business and wished that you could talk to an attorney about it, our legal subscription plans for individuals, families, and small businesses are a great, low-cost way to talk to attorneys at a fraction of what it might cost on your own.

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Small Business Legal Plan Benefits

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There is no question that small business owners will need legal advice at some point while operating their businesses. Many times, small business owners wait until there is a legal issue before contacting a qualified attorney with experience in small business law and legal matters. But you can head those problems off at the pass, so to speak, by integrating legal advice into your budget for your small business from the very beginning… but it is never too late to get legal protection.

Our small business legal plans are perfect for new small businesses as well as businesses that have been around a long time. We have options for small businesses of many varying sizes, too. You can speak to a qualified, experienced attorney about unlimited legal matters pertaining to your small business for just one, low, monthly rate, starting at just $49 per month.

If you have legal questions about employment issues, debt collection, lawsuits, unemployment, contracts, agreements, or any other labor issue, having an attorney "on retainer" can pay for itself the very first time you use our legal subscription plans. And if you have legal questions about your new startup, our network of experienced attorneys are just a phone call away with answers to all your startup's legal issues.

If you're looking to make sure you've got all your legal boxes checked for your small business, but are on a bit of a budget, our small business legal subscription plans can be a fantastic way to get low cost legal help any time you have a question. You can have documents up to 15 pages each reviewed by your attorney. Some examples of the types of documents you might want to have reviewed by your attorney might include:

• Sales contracts

• Employment contracts

• Lease agreements

• Financial agreements

• Independent contractor agreements

• Service contracts

• Non-disclosure agreements

• Intellectual property agreements

Learn more about our small business legal subscription plans by clicking here.

Five Things Every New Business Owner Needs To Do

A worn sign reads, “Come In We’re Open”

Starting a new business can be an exciting adventure, but many people get bogged down before they ever hang out an “Open” sign. There are many legal obligations to running a small business, and navigating the system and filing the proper paperwork the right way can stall your grand opening if done incorrectly.

That's why I have made it my business to help new Idaho businesses get off the ground. I've helped dozens of businesses in North Idaho with the legal paperwork required to start a small business. Here are some of the things that a small business in Idaho needs to get started:

CHOOSING A BUSINESS STRUCTURE

Whether your new company will be an LLC, an S-Corp, a C-Corp, or a sole proprietorship, you must decide on a legal structure for your business. There are pros and cons to each of these structures.

An LLC, or Limited Liability Company, protects you and your personal assets from liability if your business ever gets sued or declares bankruptcy. This means that your personal home and other assets won't be at risk. With an LLC, you can file your taxes as part of your personal income, but you will probably have to pay self-employment tax.

An S-Corp is a corporation that, for federal tax purposes, is treated as a pass-through entity, meaning that S-Corps are taxed under Subchapter S of the Internal Revenue Code (IRC), which is where the name “S-Corp” comes from. An S-Corp can issue stock, has governors (board of directors, officers, and shareholders). Owners of an S-Corp enjoy the same personal protection from liability as with a C-Corp; however, an S-Corp passes its income and loss through shareholders, eliminating the “double taxation” of having to pay taxes as both the owner and the company. Each shareholder is subject to his or her own individual tax rate on profits and losses passed through to him or her, recorded as net income on a tax return.

A C-Corp creates a legal entity that is entirely separate from the owner(s). Structuring your business as a corporation provides the greatest level of personal protection from liability, but they are more expensive and complicated to form, and they file a separate income tax on their profits.

REGISTERING YOUR BUSINESS NAME

Once you've decided on a structure for your business, you will need to register your business name with the Secretary of State of the state where your business is located. There are a few ways you can register your business name:

•  An Entity Name, which legally protects your business at the state level

• A Trademark, which legally protects your business at the federal level

• A DBA (Doing Business As), which doesn't offer any legal protection, but may still be required, depending on your location and business structure

• A domain name, which claims your business' web address. (optional, but recommended)

APPLY FOR A FEDERAL TAX ID NUMBER

Your federal tax identification number, also known as an EIN, allows you to legally hire employees, pay federal taxes, apply for business licenses, and open a business bank account. Your business will need an EIN if you plan on hiring and paying employees, filing employer tax returns, operating as a corporation, or use a tax-deferred pension plan.

APPLY FOR A STATE TAX ID NUMBER

Some states don't require a state tax ID number as they do not collect taxes from businesses, but tax obligations vary from state to state, so this may be another item to put on your checklist.

OBTAIN BUSINESS LICENSES AND PERMITS

Depending on the type of business you're starting, you may need to get licenses and permits at the state and federal level. State licenses and permits vary depending on your location and what your primary business activities entail.

PROTECT YOUR BUSINESS WITH INSURANCE

It's a good idea for all businesses to have some level of business insurance, for further personal liability protection, even with the protection of a specific business structure. Business insurance protects not just your personal assets, but can protect some of your business assets, as well. Some types of insurance are required by law - unemployment and disability insurance, for example - but it may be a good idea to purchase business insurance as well, to protect your new business from risks. Some common business insurance types are general liability insurance, product liability insurance, and commercial property insurance.

This list of five things will need to be completed before you can open a business bank account. If all of this seems daunting, DON'T PANIC! That's why I started my consulting firm: to help small businesses through every stage of their business, from start-up to flourishing! For just $199 (plus filing fees), I will do all the research, legwork, paperwork, notary, and filing of the forms you will need to complete the set up of your small business. Learn more about this service or contact me at (208) 755-8335 or email me at debbie@debbieaferguson.com

Welcome

My name is Debbie Ferguson and I’m here to help you move your business from inspiration to reality. Helping others realize their dreams has always been a huge motivator for me, but, as with most things in life, the road getting here has had its twists and turns. My background in business consulting has helped me focus my desire to help others into my dream career of helping small business owners set up, organize, and manage their businesses. This site is the culmination of a life-long dream to assist others in reaching their goals. This has already begun, with my subscription-based legal help plans, which bring affordable legal aid to small businesses and individuals, helping overcome all of life's legal issues for one small, monthly fee.

In the coming weeks, I plan to launch the newest services from my site: Business Planning and Business Consulting. While these may seem like industry buzzwords, I just wanted to take a few moments and explain what those terms mean to me, and what they can mean for you and your business.

What if there was someone who could walk you through the paperwork, documents, and forms that you'll need for your business? What if there was someone who knew what permits and licensing you'll need, what paperwork you'll need to file and where, the costs involved... and you could not just find out all that information in one place, but also let an expert handle it for you?

There are many things that a business owner needs to do well before the grand opening, and having an expert in your pocket to take care of those things for you is my specialty! Registering your business name, applying for your EIN, gathering documents, permitting, licensing, and much more, so you can focus on opening your business instead of getting bogged down in the drudgery of paperwork and bureaucracy.

This is especially helpful for contractors, because I have extensive experience completing the contractor license application, including getting the paperwork notarized. I also offer risk evaluation services, which is something that all small businesses should consider before opening their doors. As of this writing, I am only able to service small businesses in Idaho and Washington, but I will be adding new states soon, so keep checking back!

My business start-up services are just $199, so click here to learn more about this service, or give me a call or send me an email today to start getting the legal issues of your start-up handled quickly, easily, and conveniently, so you can focus on your business and not paperwork! Contact me today at (208) 755-8335 or email me at debbie@debbieaferguson.com