You have a unique set of skills. Thats great. You have an idea, or ideas, thats great too. So why haven't you started that business? In my case, and in many others cases, the barrier to entry to start a business is just too high. All the dry legal reading would put anyone to sleep and discourage them from chasing their dreams. Let's make it a bit more fun....shallllll we?
# Want some advice?
Of course you do, thats why youre reading this.
Don't worry about the pish posh and what ifs. Get going and prove the concepts. You really don't need to be form an entity until you start acquiring customers, collecting money or some other nonsense we will cover later on.
# When do I do what?
Lets keep it simple. If you're starting your business and just in the beginning stages of proving the concept, you technicallllly don't need to worry about business licenses or incorporating. When you do start getting customers you HAVE TO get a business license. You need a business license because you can bet your bottom dollar that the government is going to make sure you can conduct business in the city you operate in. Let's start off by doing the right thing shall we? No one wants Uncle Sam knocking on their door looking for money!
# Hot Tip
Check your local city government website and search for "Business License" to see what your city requires to get a business license. (Disclaimer: This advice is only for the United States right now, I'm sorry, I will do other countries in the future)
# Business types, partnerships, oh my!
The basic business types are as follows.
- Sole proprietorships
- Limited Liability Company
There are others, but thats not important right now and I'm late for happy hour! If you're starting a business and DO NOT NEED any liability or protection at the moment, a sole proprietorship will do.
Though, if you have partners, an LLC (Limited liability company) is advised to make sure you are protected from your partners fucking up and customers legally coming after you. No one wants Tommy coming after you because he got food poisoning at your discount sushi joint. Ya feel me?
And finally, if you need liability protection or your customers require you have insurance, you'll need to incorporate your business.
Starting a business is difficult and confusing. But hopefully, you have a little bit more knowledge and confidence to move forward with your idea. Please, if you don't know what to do, consult a professional. I did to write this blog post 😉
# What do I want you to take away from this?
Whatever you're doing, if you keep finding excuses for not doing it. Find the information and DO IT!
Thanks for reading!
Disclaimer: This blog post is solely informational. I am not responsible for any damages as a result of your use of this information. Please consult a certified accountant or legal council.