Starting a new business can be the most amazing business experience of a person’s life, and it can also be the scariest. News publications such as the Wall Street Journal, the New York Times, and the Los Angeles Times continue to publish articles about the benefits and detriments of starting your own business. Politicians discuss the impacts of government on new companies and growing companies. CNN and Fox News talk about potential future taxation of small business, and the impact it may have on those looking to start a new business. In the end starting a business is something very personal to the business owner, regardless of what any media outlet may write or say.
So how does someone begin to start a new business? It certainly can be an overwhelming process, and one that should begin with a plan. To create the right plan, it is important to ask questions, lots of questions. The first of these questions will likely be: What kind of business shall I start? Do I want partners or investors? Where will my business be located? Some questions you may not think to ask, but should ask are: what type of entity should the business be structured under? What are the tax consequences of the different business entities I choose? Do I need a license for this business? Do I need to file any paperwork with any government agencies or offices? Do I need a formal agreement with my new partner(s) or investor(s)?
This is where it becomes extremely important for the new business owner(s) to speak to some professionals. Specifically, it is important to meet with a qualified business attorney and a CPA to discuss which options are best for the specific business being contemplated.
