Opening a Business

[FIJI-9-Brother]

I know there are many among us who are entrepreneurs. I have decided to say fuck looking for a job and I'm starting a business. I'll spare the details but it's going to be a sustainable apparel and accessories storefront. Gonna be some incredible stuff but Im making this thread to get any advice as far as lawyering up and getting an accountant and shit like that. I know you can never prepare for the challenges of running a business but any advice would be greatly appreciated. Forming the business with someone else so advice on partnerships or how to register would help.

Thanks guys,

[serpentracer]

good place to start.

http://business.ohio.gov/starting/

the biggest thing to remember is to pay your quarterly taxes.

oh and beware of the berry company. they control the phone book lisings around here. pure crooks.

Edited November 10, 2012 by serpentracer

[Hoblick]

taxes are paid monthly until they tell you otherwise.

go to the link serpentracer posted and do alot of research.

dont be lazy on your book keeping.

go talk to an account

go talk to a bank, see who will rape you the least for your account, and also see who will rape you the least for credit card processing (and trust me you get raped)

definitely shop around for insurance, there are better deals to be had with better companies.

market your business like crazy

dont be lazy with your tax write offs, anything you do that has to do with your business can be written off, keep receipts, get a file cabinet, label folders. if you buy a pen to write with for your business, keep the receipt!!

i started being lazy about keeping track of milage.. it adds up and will help you out end of year.

dont hose your customers or youll pay for it in the long run.

first thing youll need to do to actually become a business is file for an LLC, INC, or whatever you decide. then get your federal tax ID, then Vendors license is next.

just do alot of research, alot of reading on the link posted above, and talk to other people who have done the start up. its alot of info at once and alot to take on.

[Carwhore]

^better track that mileage. It's .65/mi!

[jester3681]

I would say find an accountant who is familiar with the type of business you intend to run. Hoblick is right, there are deductions and depreciation for everything. Knowing these inside and out can make thousands of dollars in difference. An example I can think of is sometimes at the end of the fiscal year it is "cheaper" to go out and buy a new widget then to pay significantly less to fix your old widget (I know vehicles and heavy equipment/machinery are often like this) because you can start claiming depreciation again. It's kind of messed up, but in the accounting world, sometimes it's BETTER to lose money in a transaction because of what you can claim against it.

I always remember the games I would play at the salvage yard - we were owned by a publicly traded, multi-national steel company that was SOX compliant, so we used the strictest of accounting. My physical inventory was a set dollar amount, and if that fluctuated, it would cost me money on the bottom line - even if it shrank, which seems counter intuitive. So come month end, I may tell my car buyer, "You need to spend $40,000 by Friday. Don't care how many cars you buy - hell, go to Krieger and buy a new Mustang for all I care, just spend it." Because by spending that $40k, I didn't take a $60k hit on the bottom line. Shit, I remember going into the auctions online and raising his bids while he was there live bidding. That kind of pissed him off... :-) Silly, but it's the way REAL accounting works.

[MidgetTodd]

Hookers are only tax deductible if you sell mattresses

[Bankerdude]

I can help with setting up an account, filing for your assumed name certificate, and delegating taxes... Just come see me it's my job!

[ScubaCinci]

Prepare to be dry ass raped in taxes. I own 2 small businesses (3 if you count the LLC for some rental property) and the amount of taxes we pay is unreal. Get a lawyer to get an LLC or similar set up for you to indemnify you against lawsuits against your business regardless of what type of business it is. If someone falls in your store, they can sue you and your business and you can lose your car, home, everything. An umbrella insurance policy is handy too.

Having an accountant is not compulsory but it helps, especially if you are going to have employees. Hoblick made a lot of great points too. Starting a small business is hard but rewarding work. If you want to pull down big bucks, you are going to have to sacrifice and work your ass off for a while and often time wondering if it's even worth it.

[serpentracer]

if you're just starting a little shop or something don't be sweating all the legal mumbo jumbo shit. I know many small business owners who basically just opened the doors and worked through shit as they came up. (staying legal etc)

keeping your taxes on the up is the highest priority. they can throw your ass in jail and all that noise. the rest is just background noise. you're going to get calls every day from places about insurance, advertising and all that. don't let those people purseude you into all the other stuff that you will come to find out you probabaly will never need. go talk to a small shop owner and see what they have to say.

most of them will recommend an accountant because the taxes and paperwork can consume a lot of your time. which you need to spend on your work not that stuff.

Edited November 16, 2012 by serpentracer

[20thGix]

The SBA can put you in touch with local SBA/SCORE participating business owners and they offer free counseling and can mentor you through the start of your buisness. There is plenty of good info on this website.

Ive done the small buisness thing once and its fun and stressful all at the same time. I think about starting another sometimes. Good luck!!

http://www.sba.gov/

[20thGix]

Business advice? Don't start one with a partner.

^Thats how it should read.

[Brownsfan1]

^Thats how it should read.

1+

[Uncle Punk]

Taxes, taxes, taxes, pay them first.

I was once fined $2,000 for a $0.69 State sales tax quarterly bill.

[ninjachic]

starting a business is kind of a nightmare. good luck with that. If you can before you do anything, do what hoblick said and talk to accountants and banks and credit card proccessors. I also would suggest getting some books on how to start a business and reading those and maybe even trying to find some classes to take about business financials. Those classes may even help prior to talking to accountants and banks. It'll give you a better idea as to what they are going to talk to you about and be a bit easier to know if they are going to rape you or not. Be careful if you do open up a business with a partner. It always ends bad. My dad originally started his business with a partner and well that lasted like 4 years before they split up and they abosultely hate each other now. Also try finding others who own small businesses and whatnot and talk to them about how they got started. The more research you do beforehand, they better.

[Revelstoker]

first thing youll need to do to actually become a business is file for an LLC, INC, or whatever you decide. then get your federal tax ID, then Vendors license is next.

just do alot of research, alot of reading on the link posted above, and talk to other people who have done the start up. its alot of info at once and alot to take on.

Here is a very valuable service. http://www.score.org/

Check this out, go to some meetings and actually pitch your idea.

Yes, as part of your business plan be sure to spend a disproportionate amount of time on the CYA stuff. Find a lawyer and set up the LLC(s) and make sure every nook and cranny is boilerplated so the lame-ass J.Q. Public scammers can't get to your personall assets. Insurance comes in but make sure the insurance is not a target to the scammers as well. (For our latest yogurt shop, I think we have 3 layers of LLCs before someone could ever get to us.) Accountant is good for tax prep and inform you on which way to go, but don't understimate how much you can do yourself with Excel. Bookeeper may be all you need and there are plenty of options for payroll checks.

Be honest with yourself and your money. It will cost 5x the amount you think for marketing (time and money) and your sales will be -3x your expectations.

There are lots of new options on CC processing and P.O.S systems. From your brief description, it sounds like you will need a P.O.S system to keep track of all you inventory and sales. Systems are expensive and rentals are an option. CC processing fees can be as low as $.10 per transactions, so they are not as heinous as before. (thanks to SQUARE and others)

Next, be honest with your time. These businesses are 363 days, 10-12 hour a day operations and you will be involved. No days off to go riding.

If you have to borrow from a bank, you better be very conservative with the cash flow.

In all honesty, if you have never worked in retail before, do so now. Volunteer at a similar operation or something to get a flavor.

[bmwnut]

Business advice? Don't start one.

THIS!

And just work out of the back door for cash or you will be giving more than half to the tax man