Choose Your Web Business Structure
To ensure we know where we are at all times and can track all the aspects of our business, we need a structure. Start off by learning about what's involved in doing business. We can start off small earning additional income while working part-time or full-time in another job. Or we can jump in fast: become self-employed and work full-time in our new web business.
Here's a simple 3-Step approach:
- Start off small.
- Keep your business running costs low, and ...
- Think twice before making your company structure more complex, until you have proven your web business is a practical proposition.
Key tip: whatever business structure we choose, the best solution is to ensure that we can use all legal ways to ensure that our costs are as low as they can be, while ensuring that we remain within the law. Especially, communicate your wishes clearly to your tax advisors. Then you can spend the majority of your efforts and energy in making sales and improving profitability.Choosing Your Legal And Tax Advisors
Most often, if you're in business, usually, the better approach is to incorporate. However, discuss the options available with legal and tax experts in your country, find a smart lawyer and accountant, but ultimately, choose the structure that you prefer.
Caution: take special care in who you choose to manage or advise on key parts of your business. Here's why.
The following scenario happened to a friend of mine. Steer well clear of any accountant who suggests an sharp accounting practices for a slightly higher fee. Why? If you accountant is suggesting such options to you, there's a good chance he / she is actually applying these methods in practice to other clients.
When the tax authorities discover these discrepancies in, say, one of your accountant's clients (and if they're present, they almost certainly will find them), you can almost guarantee, they'll go through the remaining hundreds of other accounts — in detail — looking for similar "mistakes" and guess who pays the highest price in the end?
For a small business starting up in the USA, a popular option is to form a Limited Liability Company (LLC) or Sub S Corporation (rather than a C Corporation).
Whatever you do, when starting out, don't forget the Number 1 rule: keep your company structure as simple and as low-cost as possible, so that you can better concentrate on one of your most important activities: making sales.
Why Together Everyone Achieves More (TEAM)
Feelings of isolation can become a problem for web business providers. Therefore, I suggest that you regularly remind yourself that you need not feel alone.
Even though you may have established a one- or two-person business, if you're smart, you'll involve several other parties in your business affairs. At various times, you may involve outside specialists such as accountants, lawyer, advisors, web designers, mentors, and so on. Even your favorite pet can become your firm's mascot.
Key tip: consider creating a mastermind team. All you need are two or more people, who are available and with whom you trust to discuss your day-to-day activities, swap ideas, clearly define your goals, get feedback, discover different perspectives, receive encouragement, and so on.