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starting a business and have some questions

Discussion in 'The Lounge' started by yunit, Mar 10, 2005.

  1. yunit

    yunit 1/2 ton status

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    Ok, I am planning to start a business and need to know what I have to do in order to make everything legal and what I need to do to protect myself in case the business fails? Thanks for what ever help anyone can provide. Pete.
     
  2. kyser_soze

    kyser_soze 1/2 ton status

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    Look into incorporating the business, it works out better with the taxes and liability also.
     
  3. big pappa b

    big pappa b 3/4 ton status

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    there should be an incorporating service nearby. When you go to the city to apply for a business license they should be able to give you all the info you need.

    As for protecting yourself, keep everything in the business name, not yours. Not sure what the biz is gonna be but you can get $1 million in liability insurance fairly cheap too
     
  4. 4by4bygod

    4by4bygod 1/2 ton status

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    A good first step would be to contact the office of the secretary of state, and ask them to send you information about setting up your own business. They should send you a folder with all of the forms that enable you to register your business name, along with info describing the differences between a sole proprietorship, LLC, S- Corp, or whatever is legal in your state.

    I'd also check out the many websites that talk about the best way to set up a business from an accountants point of view. A quick search can turn those up. Also, make friends with an accountant who works with small businesses and the self employed. H & R block guys typically don't know enough to be of use. take a close look at the tax advantages and disadvantages of each format, and a good accountant knows angles us civillians wouldn't think of.

    As far as liability, insurance is probably mandatory, and maybe an LLC setup would work for you. depends on what your business is, as to the amount of exposure you risk. for instance, At our detail shop, we are sole props, but we have liability and garagekeepers insurance to pay for any damage we might inadvertantly cause.

    A good rule of thumb is that having the right insurance is better protection than how you might set up the corporation. A judge can rule that you are liable for damages, no matter how you are incorporated. In that case, insurance is your only real protection. On the other hand, if your product or service can do no harm to people or damage property, don't waste the money paying for insurance you don't need.

    Tom
     
  5. Bubba Ray Boudreaux

    Bubba Ray Boudreaux 1 ton status

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    Make sure the local cops are on the payroll and are given discounts from the gals you have working at the brothel..................... :D
     
  6. cbbr

    cbbr 1 ton status GMOTM Winner

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    Hire a local lawyer to help you get everything set up right. Cost you a few bucks on the front end but it will make your life so much easier later if anything happens. An accountant is not a bad idea later.

    I'm certainly not saying that you can't do it yourself, you can and the advice bove is good. There are two differences. 1) if a lawyer does it it should be right and you will get good advice on how to keep everything right. 2) If a lawyer does it and its not right, and something happens, lawyers have malpractice insuance.:whistle:
     
  7. Fubeca

    Fubeca 1/2 ton status

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    An LLC or S-Corp is probably the way to go for you if you want to separate your assets from the business. I wouldn't incorporate unless you wanted to become a public company. It doesn't really provide any more protection but it does create tax and reporting issues you may not want to deal with.

    I second the idea of consulting an attorney and a CPA, they can set you straight upfront and it will save you time and money in the long run.
     

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