Taxes are a very serious concern for any business owner. There isn’t a for-profit business owner anywhere who doesn’t have to take taxes into consideration. Almost every location in the world taxes businesses.
As a business owner, you may be responsible for a wider variety of taxes than ever before. You need to consider not only your own state and federal taxes, but also sales taxes, payroll taxes, and many others.
You will need to apply for an Employer Identification Number, or EIN. This is your federal tax ID number (sort of like your social security number, if you’re American) and it will be how you file your federal taxes to the IRS. It will also be used if your company applies for credit and for other purposes.
Here is more information on the EIN:
It is highly recommended that you consult with a tax professional on a regular basis to be sure you’re complying with all federal, state and local tax laws, as it could cost you far more down the road than a tax professional will cost you now.
One thing a lot of business owners overlook is how they will be paid for their products or services. Some think that taking cash and checks are sufficient, but these days people want more ways – easier ways – to pay.
In fact, many people don’t even carry cash or a checkbook anymore. They may have a few bucks tucked away for vending machines or bus fare, but generally they prefer to pay using credit or debit cards or other methods.
If you’re opening a brick-and-mortar business such as a restaurant or store, you’ll definitely need to take credit and debit cards as a payment method. But even if you’re performing a service or selling online, you’ll need a way to take alternative methods of payment. Even flea market vendors and farmer’s markets are starting to take credit cards!
If you have a device such as an iPhone or iPad, you can use one of the simple card reader billing systems such as Square. These small readers insert into the headphone jack of your device and allow you to take credit card payments instantly, no matter where you are, as long as you have an internet connection.
You should investigate each company’s operating platforms (such as iOS and Android), their fees, and their terms of service to see which one is the best match for your business. Most of the actual card readers are free or cost $10 or less, but you must pay small processing fees that generally vary between companies.
Additionally, Square has a stand for the iPad that will turn your iPad into an actual point of sale machine, allowing you to use in brick-and-mortar businesses like stores and restaurants. The stand is $99.
If you are doing business solely online, you’ll probably want to use a regular payment processor. The most popular one is PayPal, but there are a few others you could consider if you happen to not like PayPal for whatever reason.
Starting a business requires a lot of careful thought, planning and preparation. If you get started without taking all of these things into consideration, you will likely find the road to profitability a long, bumpy one, if you manage to make your destination at all.
If you are averse to risk, you have trouble motivating yourself, or you’re not a very organized person, you may want to reconsider opening your own business, at least until you work on these traits.
But if you’re ready and willing to work hard, you’ve got the drive and determination, you will be well on your way to starting your own profitable business in any field you choose.
Just be sure you follow these steps carefully, especially when it comes to taxes and legal issues such as licensing and zoning. The last thing you want is legal trouble for your new business, as it could close your company before it’s even started!
I wish you nothing but the best of luck on your business venture. I’m excited for you and I hope you found this business startup video course insightful.