by Sonia Colon
http://www.jimsonproducts.com
It is imperative to have your business legally
prepared. How you ask? You need to have a business license, a home
occupation license, if running your business from home, a City or
County license, (depending on what State you live) plus you need
to register your business as fictious if you are not using your
name as a business. For instance, If John Doe has a business name
as John Doe's Grooming Parlor, a fictious name isn't necessary.
When opening a business in your residence, additional
information is required. Some businesses require more than a City
license to be fully licensed. Please check with your local City
& State office for detailed information.
While it is my understanding that there are many
businesses who are operating "under the table", so to
speak, I highly advise against this practice. If you are just interested
in selling a few things out of your home, don't worry about this
section, as you should not have any form of tax liability for selling
your own belongings. However, if you start a business to make some
money, you need to look at the legal aspects of running a business.
Eventually, those who operate under the table will be caught.
If you are running an internet business it is not
as anonymous as some people may believe. Keep in mind, the government
designed the Internet in the first place! They know how it works!
Legalize it and you will sleep better at night!
It really is simple. This is not as complicated
as you think, so don't worry! I know I fussed and fretted over this
for a good while and when I actually went "legal", I kicked
myself because the process was so simple.
Follow the steps below to get you started:
1. Determine the type of home business you want
to start. Sole Proprietorship, Partnership or Corporation.
* A sole proprietorship is the least costly
and least complicated way to set up your business. Remember
that a sole proprietorship is totally dependent upon your ability
to work and have good ideas for growth. There is no other person
in the business to rely on.
* A partnership happens when two or more entrepreneurs
form a company. Legal fees for setting up such an arrangement
are usually more costly than those required for a sole proprietorship
and less costly than a corporation. The up side of a partnership
is more capital for growth and more ideas for how to grow the
business. The downside is getting rid of a bad partner.
* A corporation is the most complicated and
most costly of the three options. The ongoing accounting, legal,
and tax reporting obligations of a corporation are much more
complicated than for the other two options. Corporations have
boards, shareholders, and shared responsibility for the business.
It is necessary to keep everyone informed of decisions, the
company's financial status, and a host of other actions.
It is wise to seek the advise of an attorney
in the beginning of your work-from-home situation in order to
avoid serious problems later on. An attorney will guide your decision
about what legal form your company should take.
2. If using a fictious name for the business,
it must be registered first with the State. Call your City &
State office to find out their phone number. Usually, you can
do this online. Visit their site and fill out a fictious name
form. A fee may or may not apply.
3. Is your home located in the City? Some States
like Florida require a County license if your busines isn't located
in the City. If not sure, contact your local jurisdiction office
for licensinig information.
4. Complete the home occupation application and
the business license application. You may download the forms from
your City hall website. Call your City hall office to find out
their website address and fees.
5. Forward your applications and fees to your
City hall office either by mail or by visiting the office. They
will usually accept cash, checks, debit cards, VISA, MasterCard
or American Express credit cards. Again, check with your local
City hall office.
If you visit in person with your applications and
appropriate fees, you will get your business licenses the same day.
However, if you do all of this by mail, you would need to wait at
least 2 to 3 weeks to receive your licenses. Either way, you are
on the right track.
Congratulations!!
Credit:
About the Author:
Sonia Colon is owner of Jimson Products, an affordable online gift
store at: http://www.jimsonproducts.com
She is also a successful publisher of "My Jimson Products Ezine."
Subscribe by visiting her website. Sonia Colon has been successfully
eBaying and have given her customers satisfactory service. Check
out her feedback at: http://cgi2.ebay.com/a w-cgi/eBayISAPI.dll?
ViewFeedback&userid=jammi91
Related
Information:
NBA
Benefit Provider - BizFilings
NBA
Resource Article - Business
Sense
NBA
Resource Article - How
to Protect Yourself & Your Business
Reprint of this article does not constitute an
endorsement by the National Business Association; the article is
for informational purposes for our members and viewers of our Web
site.
|
