When you are trying to set up a new business, the very first step is to establish a long-term master plan for your business. If you do not have a clear picture of where and how the business will be going, you better not even think about starting a new business. Once the blue print is established, then choosing the form of entity of your business (e.g. “S” corporation, sole proprietor, limited liability company) is the next and most crucial decision that can have longstanding tax implications, positive or negative. We can assist you in evaluating the pros and cons of each entity type to help you determine the most advantageous form of business for your company. Many people have the mistaken impression that LLC is the most favorable type of entity. That entity sounds good from a theoretical point of view, but practically, it does not do much good in terms of tax savings and liability protection. If the business is handling a lot of cash, C-Corp is preferable. If there is one owner and the business value is decent, S-Corp is much better than LLC. If the business is a venture and the future is very uncertain, then LLC might be good choice. If you cannot trust your partner, a corporation type is better than partnership. If your business involves real estate, you must avoid corporation type.
As you start your business, we help you:
- Prepare an initial business plan to clarify your marketing, management, and financial plans.
- Determine your start-up capital needs.
- Identify sources of start-up capital and backup sources if needed.
- Evaluate and quantify your borrowing power so you know how much money you can acquire.
- Prepare a Cash Flow Budget so you know exactly how much money you need to keep the business alive each month for the first few years. Unplanned cash requirements are always emotionally painful.
- Establish billing and collection procedures to maximize your cash flow.
- Establish procedures to monitor and control costs.
- Prepare and file all required state and local licenses and permits.
- Comply with employment laws so you don’t get hit with fines and unhappy employees.
- Identify your business insurance needs.
- Develop a solid Partnership Agreement. This is an extremely important document for all new partnerships and will help prevent a tremendous amount of financial and emotional problems down the road.
Let us help you succeed by getting your new business off to a good strong start.