Before you even THINK about registering your business you NEED to go see an accountant. DO THAT RIGHT NOW! You might be thinking, but why? I haven't even started. I don't have anything to account for (see what I did there?) Trust me, an accountant's guidance is so crucial at this point in your businesses development.
During my first meeting with my accountant we discussed what kind of business made sense for me to own (LLC), how to register it, when I was going to have to pay taxes and how the amounts owed were calculated, and what percentage I was going to have to set aside for Federal/ State taxes AND my IRA. This first consultation meeting was FREE. We also discussed the best way to set up my books and whether I was going to do the book-keeping or not. There's no one way to organize a business and that includes the finances. It's important to find a professional that can help you set up that structure.
As mentioned before I decided against a sole proprietorship in favour for an LLC. To explain why here is an adorable video:
As explained above an LLC can protect you in case you ever find yourself faced with a lawsuit. Should that ever occur, chances are your accountant can then (if they haven't already) refer you to a reputable lawyer.
OK! You have your homework assignment! Go find your accountant. If you live in the Richmond area I highly recommend Kimberly Dages.
Tune in next week when we will be discussing the paperwork you get to fill out! It's so much fun!!
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