1. Have a Business Plan
a) Business plans are used for financing.
b) They provide a yardstick against which future performance will be measured.
c) They provide a framework for decision making and coordination of business.
d) They define the business culture that will be communicated to employees, customers, etc.
2. Choose the Entity that is Right for You
a) Sole Proprietorship
d) Limited Liability Company (LLC)
3. Set up a Good Recordkeeping System
a) Set up a business bank account.
b) Use a good accounting software program or recordkeeping system.
c) Keep all receipts relative to the business.
d) Stay away from cash transactions.
e) Know the records retention requirements. (attached)
4. Know Your Filing Requirements and Your Tax Responsibilities
a) What forms are required and when are they due?
b) Set up a calendar system to help monitor the due dates.
c) Learn what taxes are due and how you calculate the amount to pay.
d) Learn the rules for taking money from your business account.
5. Engage a Good Banker, Accountant & Attorney
a) A banker will help you with loans, financing, bank accounts and recordkeeping.
b) An accountant will help you with your accounting, taxes and filing requirements.
c) An attorney will help you with all your legal issues and help protect your assets.