If you’re thinking of starting a new business, here are the most common administrative pitfalls we see people fall into as small business owners.
- Ignoring taxes. The IRS has many different tax forms that need to be filled out annually by every business owner. Plus, you might have tax deductions you can take advantage of, so make sure you understand how taxes work as a small business owner, including deductions, credits, and filing deadlines.
- Ignoring the importance of an accountant. Hiring an accountant is a must-have for most small business owners. Unless you have formal accounting training or are very proficient at using accounting software, you’ll likely miss something. And missing your accounting deadlines and requirements can have very costly consequences, so it’s a good idea to hire a professional accountant to keep track of it for you.
- Not registering your business entity correctly. Firstly, you must be clear on the different business structures available to you, such as sole proprietorship, partnership, limited liability, and corporation. Many business owners choose an LLC because of the flexibility, limited liability, and tax advantages, but make sure that you’re aware of your state regulations, as they can differ. You can also hire someone to take care of setting up your business and registering an easy LLC in OH.
- Not getting business insurance. It can be challenging to set money aside for expenses that you might not even need. Still, if you do suffer from unusual events such as fire, earthquake damage, or flooding, you’ll be glad that you had a business insurance policy in place.
- Not having a lawyer review your contracts and agreements before signing them. We’ve always been told not to sign anything without reading it. But when it comes to business contracts, the stakes are higher, and they can be very technical, so it’s always good to have Pullins Law Firm review them.
- Failing to maintain accurate records of company finances and operations. Even if you hire accountants, they will only keep track of the information you actually provide them with. Make sure you review with them precisely what records from the day-to-day operations you need to keep hold of and set up a process to ensure that nothing gets lost.
- Failing to get professional advice when needed. As your business grows, you’ll likely have to make decisions as to the business structure, tax payments, employee hiring, and many other things. As a rule, when you have to make decisions that could be costly in the long run or have serious consequences, if you’re not sure of the implications, seek professional advice from the right consultants.
If you’re ready to take the next step forward and start your own small business, keep these tips in mind. Not only can they save you a lot of trouble later on down the line, but they’ll also help increase your chances for success! Let Pullins Law Firm be a part of your journey! Call 740-392-3505 for a consultation.