Starting Your Own Business!
The American Dream is, and always will be, to come up with an idea, start a business and become rich from your own efforts.
This report will enlighten you, and give you a few suggestions you can use to better guarantee your chances for success.
However, this report is written with the warning that any and every business venture contains certain inherent risks. We do not espouse that any one way is the right way or that our suggestions are the only way.
Just about the first thing you should consider before deciding to start or purchase a business is the legal form you'll be operating under.
There are basically four choices: sole proprietorship partnership, limited partnership, and/or corporation. Each has a number of advantages and disadvantages.
As much as anything else, for many people, starting a business is a form of ego-gratification, and they form a corporation for some sort of prestige gain - just to say, "I own a corporation."
With just a little bit of observation, you'll find that one of the major causes of business failures is due to the founder wasting start-up capital on frills.
To be successful in business is to develop a tight hold on your expenditures. In fact, a good rule of thumb is that any thing that does not make money for you or protect your investment should not be purchased at this time. Very definitely, this applies to the expense of setting up your own corporation.
Unless you have a partnership and start your business as such, the only real advantage to forming a corporation would appear to be that a corporate structure will semi-protect the property you personally own.
Now, if you invest everything you have in your business, as most newcomers do, you don't usually need a corporation because you have nothing to protect.
As a sole proprietor or partner of a business you'll be paying taxes on your over all earnings, much the same as if you were holding down a salaried or hourly paid job.
The often-advertised advantage of incorporating, that you can manipulate your salary in order to save on tax dollars is real because of corporation laws. When your business is successful and making a lot of money, definitely check with your accountant on the advantages of incorporating.
As a corporation, you'll be subject to generally higher state taxes, stricter laws concerning the operation of your business, more elaborate accounting procedures than a sole proprietorship type of business. Legal and accounting fees are much higher as a corporation.
As a sole proprietor or partnership, you'll find many areas require the registration of your business name. Selecting a name for your business is quite important to you and particularly relative to advertising. Your business name should describe the product or services you offer.
In closing, let me say that the most important ingredient of your eventual success will be the soundness of the planning you did before you started your business. Any number of bad things can really throw your business into a tailspin, but if you've done your homework well, your losses or setbacks will be minimal. Success takes planning. The rest is up to you!
© 2004, Jon Kogan, All Rights Reserved.
Jon Kogan EDITOR - Ho^me Bu^siness Breakthroughs Ezine https://www.zivomarketing.com Helping People Help Themselves
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