We all have our own ideas on how to run a business. But some things simply must be done in order to run it correctly.
During the years I have listened to many business owners who have bragged they do not pay taxes, or have borrowed money and never paid the bank or received merchandise on credit and did not pay. This caught up with them. A lot of business owners feel not reporting sales is a good way to not pay taxes.
Business Basics & Types
Write a Business Plan The first step in making a decision to start a business is writing a business plan. Whether big or small, every business should have a written business plan before moving forward. If you have never written a business plan before, there are resources that can assist you. I recommend the sales tax office in your town. Small Business Development Centers, which have offices in every county. To find an office near you, I will list some on another page in the resources category. Also it can be located online and they take phone calls and will assist you. I also know that if you are disabled you may receive a license free or at a big discount. If you are a senior or a veteran they have great discounts for you too in many counties What Type of Business Should I Choose? When organizing your first business, there are different business structures from which you can choose. You should have a good understanding of the pros and cons of each type. It is strongly recommended that if you are unsure of which structure is best for your business, you should seek professional advice from an attorney or accountant.
Before naming your business,you want to make sure it is available. Even your own name maybe trademarked. If it is a corp or web address you need to go to the internet and search for it. Your name of your business should reflect who you are. I work weekends in a flea market and am a foster parent too raising a teenager and married but my business name is really who I am as a business women. Yes I do many things in business but my main operation is in the flea market.
Peddlars License is for those selling in different locations,going door to door. Not a fixed location.
Limited Liability Company Advantages Limited liability Flexible management structure and ownership Continuous existence Legal entity Easier to raise capital Disadvantages More expensive to organize than a proprietorship or partnership More regulations than a proprietorship or partnership
I know where I live in FLorida there are different licenses for new or used products. Selling online is another.
Additional Resources Name Search Nonprofit Information Center Guide to Doing Business in your state Small Business Development Centers SCORE - Counseling from Experienced Business Leaders Business Incubation Network State Contracting
Partnership Advantages Ease of formation Low start-up costs Additional sources of venture capital Broader management Limited outside regulation Disadvantages Unlimited personal liability Lack of continuity Divided authority Difficulty in raising additional capital Hard to find suitable partners
Corporation Advantages Limited liability Specialized management Ownership is transferable Continuous existence Legal entity Easier to raise capital Unity of action account having centralized authority in board of directors Disadvantages Closely regulated Lack of continuity Charter restrictions Extensive record-keeping necessary Double taxation, except when organized as an S Corporation Difficult to liquidate investment