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Starting a Small Business or Home Based Business

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I have noticed that some people tend to present a romanticized view of being self employed. According to some websites you can make $5,000 a week if you just own a computer! Not to dampen your dreams of being your own boss but small business (or any business for that matter) involves considerable time, careful planning, sweat, tears and hard work.

Rather than jump to the steps in starting a small business, the first consideration of any new business enterprise should be to carefully consider impact the planned venture will have on your time, finances and family life. Running a successful small business requires a total commitment from you and family members. This is especially true if you are starting a home based business since the normal family routines are disrupted. Family members need to understand and respect that even though mom or dad  is only in the next room, they are at “THE OFFICE.”

Our firm is uniquely positioned to offer you full service start up services including business plan development, entity selection, computer systems, technology management, accounting, tax planning and preparation and web development services. After considering the steps involved in starting a new business feel free to give me a call or email for a free initial consultation.

Business Plan Development – What do you want to do? Why are you interested in starting your own business? What skills or resources do you posses that would make the planned activity a success? What is your target market? Who is your competition? Taking the time to write down your business plan is critical to you future success. There are many things to consider in developing a business plan and its beyond the scope of what I can post on this web page but generally the business plan covers your objectives, product, strategy and start-up cost projections.


Develop a Team of Advisors – This may include an attorney, banker, accountant, insurance agent, and other professionals as required by your business. These professionals can advise you on important legal, tax, and financial implications that you may not have considered when starting a small business.


Choose a Tax Entity – The legal form of business entity that you choose directly impacts the taxes you pay, the costs of doing business and transfer ability of ownership. Consult with your tax and legal advisors BEFORE you make your decision. Tax entity choice include:

SOLE PROPRIETORSHIP
GENERAL PARTNERSHIP
LIMITED PARTNERSHIP
PROFESSIONAL PARTNERSHIP
LIMITED LIABILITY COMPANY- LLC
LIMITED LIABILITY PARTNERSHIP – LLP
C CORPORATION
S CORPORATIONS
PROFESSIONAL CORPORATIONS

In choosing your tax entity, you want to work closely with your attorney and tax advisor to fully consider all issues pertinent to your new business. For more information see Tax Entity Selection and related items on the Tax Services page.

Choose a Business Name and Obtain the Necessary Licenses, Permits, Registrations and Employer Identification Number – This is dependent on the particular legal entity chosen but may include permits, d.b.a. (doing business as)  assumed name, federal identification number and state sale tax registration. It is critically important to do a through name search on your proposed business name BEFORE spending any money! Generally, all businesses operating in a state must file with that states Secretary of State or County Clerks Office. If your business will conduct transactions in other states or localities be sure to check their name registration requirements and possible name conflicts.

In the State of Texas, all businesses operating as limited partnerships, registered limited liability partnerships, limited liability companies, corporations, professional corporations, nonprofit corporations, and professional associations must register with the Secretary of State.  If the business will operate as a sole proprietorship or a general partnership, an Assumed Name Certificate or d.b.a. (doing business as) for each name the business will use must be on file with the county clerk in each county where a business premise will be maintained. If no business premise will be maintained, it should be filed in each county where business will be conducted. Click here for DFW Area County Clerks Offices.

"Foreign" Corporations, limited partnerships, and limited liability companies organized in other states or countries other than Texas may transact business in Texas by obtaining a certificate of authority through the Secretary of States Office.

Website Name and Hosting - Do not forget to register an appropriate website name! Remember “e-business IS business” We can assist you with professional web development services for your new business including name registration, website design, content development, web hosting, web site maintenance, e commerce, marketing and site promotion. We also provide hardware, software, maintenance and network design.  For more information see Technology Management on the home page.

S Corporations – Be sure to file IRS form 2553 Election by a Small Business Corporation within 3 months 15 days from the date of incorporation to ensure the election is effective for the first taxable year. As a general rule this election should be filed right after receiving you incorporation documents.

Special considerations for starting a small Home Based Businesses

Home Office –Generally you should strive to replicate a professional office setting. The office should provide privacy and room for the standard office equipment, computers, etc. If you plan on meeting clients at your office, be certain to check you’re zoning restrictions to see if you are permitted to run a business out of your home.

Remote Connectivity - Remote access technologies are revolutionizing the way companies work. Your ability to access information online, receive and send calls, emails and faxes is critical to the success of your home based business. Consider what would happen if the phone line went dead. Are you “out of business?” If you frequently access the internet or company virtual private network (VPN) figure in the cost of adding MULTIPLE connection sources from DIFFERENT vendors.

Internet Security – Home office computers are particularly vulnerable to unauthorized access since they often contain valuable, sensitive information and do not have the benefit of an on call IT staff. Viruses, hackers, and other computer problems are an important consideration since they too can put you “out of business” (at least temporarily).

Through partnering with technology solution providers, we offer home based businesses full service planning and implementation in the areas of remote connectivity, security, computers, recovery systems and home networking. For more information see Technology Management on the home page.

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