Preparing a Small Business for Financial Success
Guest blogger, Kayla Bredar of Shawnee Financial Services, provides important things to consider when starting a small business.
Starting a business can be overwhelming. At Shawnee Financial Services, we believe small business is vital to the success of our communities and we want to help you!
Start by answering these 5 questions:
What does your business do? Are you selling products? If so, you will need to be sure to get a sales tax number and file your sales tax reports according to your state’s guidelines. Don’t worry, we can help you.
What are your long-term goals?
Are you looking for this to be a seasonal, part-time, or side job? If so, you may not need to form the LLC or Corporation. A schedule C business might be best.Are you going to employ others?
Payroll has several pros and cons and can be expensive. You might be able to pay others on a 1099 contract, instead.Do you have means to keep adequate records?
It is best business practice to keep all business records separate from all personal records. An accounting system is strongly recommended but doesn’t have to be complex. We can help.How can we help you grow?
Sometimes there are questions you do not know that you need to be asking. It is always best to reach out and tell us what your plans are so we can help you navigate. Our consultations are traditionally free. You do not pay us, until we do work for you.
Did you know there are several types of business entities?
The IRS recognizes several different types of business entities. Each of the entities are taxed differently providing certain benefits at different times.
The most basic, is a sole proprietor. You have a sole proprietor operation when there is only one owner, and they file a Schedule C with their personal income tax return. Sole proprietors are traditionally the cheapest to establish, but do typically require you to pay self-employment tax.
Partnerships and Corporations also exist and have different taxing benefits and consequences. It is possible that one of these structures is the best fit for your organization.
Another entity created by state statute is an LLC or Limited Liability Company. LLC’s provide certain liability coverage for business owners but are taxed as a disregarded entity (schedule C), partnership, or corporation. Many organizations opt to have the added liability coverage and choose this option.
We understand that reading an IRS publication isn’t fun for everyone and we want to help you make the most informed decisions. Let’s talk about what might help you the most!
Set up a free consultation with Kayla Bredar by email at kaylab@shawneefinancial.com.
A Note from Brainstorm Boutique:
One concern when starting Brainstorm Boutique was creating a foundation for financial success and being prepared to pay taxes. There was so much I didn’t know. I had created a logo for Shawnee Financial Services earlier in the year, and reached out to Kayla for some advice. I wasn’t disappointed. Kayla listened to me share my long-term goals for Brainstorm Boutique and she gave me in-depth advice on how to prepare for financial success from the very beginning. I went from feeling intimidated to feeling free! All my worries were erased and Kayla has guided me every step of the way.
Shawnee Financial Services is local to me in Southern Illinois, but they assist small businesses across the country. She has clients as far as Alaska! I highly recommend her services for anyone starting a small business.