The reality is that laws change all the time so do your own research. With that said, here are some tips to get started.
First, figure out what legal structure fits your needs. If you are starting a small business with low risk of being sued or causing severe damage to structures, etc... a sole proprietorship will work great for you. It is generally easy to set up with your state/county/city depending on your area and type of business. Remember that you are personally liable for all actions and debt incurred by the business. Many retail or physical locations need additional licenses to operate legally. If you are going into business with a partner then file for a partnership. Most people also file for a dba (doing business as) which is pretty easy in Idaho and most states.
If you are starting a business that will have higher risk of lawsuits or you are looking to raise money early on by selling equity, a corporation or LLC is the way to go. It is more complicated to set up and generally you should consult with a lawyer and accountant to draw up the paperwork.
Second, figure out what your tax liabilities will be. Many businesses file for an EIN (Employer Identification Number) it's like a social security number for your business. It is required if you will have employees. Most businesses have to file taxes each quarter throughout the year so make sure you stay on top of your tax liability and re-calculate for the ytd taxes owed each time you pay because if you move into a new tax bracket you are immediately responsible for the higher tax rate and can owe interest on the taxes you didn't know you would have. Kinda sounds like an over watchful big brother right?
Overall starting a small business is pretty easy and you can always make some phone calls to your city or county for more direction or to answer specific questions. It is also a great way to legally reduce your tax burden and make some side income.
First, figure out what legal structure fits your needs. If you are starting a small business with low risk of being sued or causing severe damage to structures, etc... a sole proprietorship will work great for you. It is generally easy to set up with your state/county/city depending on your area and type of business. Remember that you are personally liable for all actions and debt incurred by the business. Many retail or physical locations need additional licenses to operate legally. If you are going into business with a partner then file for a partnership. Most people also file for a dba (doing business as) which is pretty easy in Idaho and most states.
If you are starting a business that will have higher risk of lawsuits or you are looking to raise money early on by selling equity, a corporation or LLC is the way to go. It is more complicated to set up and generally you should consult with a lawyer and accountant to draw up the paperwork.
Second, figure out what your tax liabilities will be. Many businesses file for an EIN (Employer Identification Number) it's like a social security number for your business. It is required if you will have employees. Most businesses have to file taxes each quarter throughout the year so make sure you stay on top of your tax liability and re-calculate for the ytd taxes owed each time you pay because if you move into a new tax bracket you are immediately responsible for the higher tax rate and can owe interest on the taxes you didn't know you would have. Kinda sounds like an over watchful big brother right?
Overall starting a small business is pretty easy and you can always make some phone calls to your city or county for more direction or to answer specific questions. It is also a great way to legally reduce your tax burden and make some side income.
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