![]() ![]() ![]() However, a sole proprietor is personally responsible for debts incurred by the business and may find it hard to raise funds and hire employees. This type of business is easy to set up, and accounting is simple since it is attached to the owner’s personal tax returns. Most businesses start out as sole proprietorships, where the owner has full control as well as full responsibility. Once this is all mapped out, it will be easier to define the business. Think about how exposed you’re likely to be to lawsuits and the tax implications of what you intend to profit vs. Consider how large your business is likely to be, how much control you want to retain and how structured it will be. ![]() Considering your long-term and short-term business goals can help you to determine what makes the most sense – a proprietorship, partnership, corporation or one of the nuanced varieties of these main choices. One of the first decisions business owners have to make is to define their official business entity status. Sure, the idea of getting all this infrastructure going can be daunting to say the least, so we’ve decided to break it all down for you and explain the basic principles at play. You might have seen content around the web telling you that you need a merchant underwriter, LLC status in Delaware, LTD status in Cyprus, a payment processor gateway, a bookkeeping solution, an account with Square, three PayPal accounts, and a team of geeks to make sure it’s all running smoothly.īut it really doesn’t have to be all that complicated, and almost everything relating to your business’s payments only needs to be set up once – after the systems are activated and playing together nicely, you should be able to finally focus on actually getting work done. Along with self-employment advantages like schedule flexibility, pursuing a dream and having full control come the responsibilities of setting yourself up financially to bill clients, pay taxes and pay others. Setting up your own business is an exciting if sometimes stressful endeavor. ![]()
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