5 Things To Know As A New Business Owner

Starting a new business can be an exciting and challenging endeavor. As a new business owner, there are several things you should keep in mind to ensure the success of your venture.

1. Register your business & set up federal + state tax IDs

The legal structure you select for your business will affect your registration requirements, tax obligations, and personal liability. It is crucial to comprehend these implications before deciding on a structure. Depending on your choice, you may also need to register for an EIN (Employer Identification Number).

2. Understand your tax obligations

When it comes to taxes, it is essential for business owners to understand their tax obligations. This means being aware of the taxes you must pay, their due dates, and how to file tax returns correctly. Working with a certified public accountant (CPA) can be helpful for new business owners to ensure compliance with tax laws and regulations.

3. Protect your personal assets

One of the primary reasons to form a business entity, such as a limited liability company (LLC) or corporation, is to protect your personal assets from business-related liabilities. By separating your personal and business assets, you can help shield your personal assets from any lawsuits or other legal claims that may arise.

4. Keep accurate financial records

As a business owner, it is important to keep accurate financial records. This means tracking all income and expenses, as well as keeping records of all financial transactions. Accurate financial records will help you make informed business decisions, and they will also be necessary come tax time. Using things like Quickbooks & a specific business bank account can help you stay organized & categorize your records with ease.

5. Seek professional advice

Starting a new business can be overwhelming, and there are many legal, financial, and operational considerations to keep in mind. Don't be afraid to seek professional advice from experts in the field. A CPA like myself can help with compliance and tax planning to ensure you aren’t missing any important foundations.

By keeping these five key things in mind, you can set your new business up for success and help ensure its long-term viability. Good luck on your entrepreneurial journey!