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The Small Business Start-Up Kit
A Step-by-Step Legal Guide
- Product Details
- choose the right business structure, such as an LLC or partnership
- write an effective business plan
- pick a winning business name and protect it
- get the proper licenses and permits
- manage finances and taxes
- hire and manage staff, and
- market your business effectively, online and off.
- Supplement: Working With a Web Developer to Create a Custom Site
- Partnership Agreement
- Sample Buy-Sell Agreement Provisions
- Election To Have a Tax Year Other Than a Required Tax Year (IRS Form 8716)
- Entity Classification Election (IRS Form 8832)
- Application for Employer Identification Number (IRS Form SS-4)
- Instructions for Form SS-4
- Billable Rate Worksheet
- Cash Flow Projection Worksheet
- Break-Even Analysis Worksheet
- Profit/Loss Forecast Worksheet
- Warranty Track Worksheet
- Balance Sheet
- About the Author
- Table of Contents
- Although Conditions Change, the Elements of Success Are the Same
- Systems Facilitate Success
- Why This Book Is a Must for Start-Ups
- Take the Leap
- Sole Proprietorships
- Partnerships
- Limited Liability Companies (LLCs)
- Corporations
- Benefit Corporations, L3Cs, and Emerging Business Structures for Socially Conscious, Mission-Driven Businesses
- Choosing the Best Structure for Your Business
- An Overview of Trademark Law
- Trademark Issues Online
- Name Searches
- Choosing a Domain Name
- Trademark Registration
- Winning Names for Your Business, Products, and Services
- Picking the Right Spot
- Complying With Zoning Laws
- Commercial Leases
- Different Purposes Require Different Plans
- Describing Your Business and Yourself
- Making Financial Projections
- Break-Even Analysis
- Profit/Loss Forecast
- Start-Up Cost Estimate
- Cash Flow Projection
- Putting It All Together
- Realities of Funding a Start-Up
- Debt Versus Equity Financing
- Business Loans
- Equity Investments
- What Lenders and Investors Look For
- Alternatives to Institutional Funders
- Pricing and Billing for Service Businesses
- Bidding and Creating Proposals
- Pricing for Businesses Selling Products
- Step 1: File Organizational Documents With Your State (Corporations, LLCs, and Limited Partnerships Only)
- Step 2: Obtain a Federal Employer Identification Number (EIN)
- Step 3: Register Your Fictitious Business Name (FBN)
- Step 4: Obtain a Local Tax Registration Certificate
- Step 5: Obtain a State Seller’s Permit
- Step 6: Obtain Specialized Licenses or Permits
- Who Might Sue or Be Sued
- Risk Management Strategies
- Insurance and Warranties
- Tax Basics
- Income Taxes for Sole Proprietors
- Income Taxes for Partnerships
- Income Taxes for LLCs
- Estimating and Paying Your Taxes Quarterly
- City and County Taxes
- Sales Taxes
- Home Business Zoning Restrictions
- The Home Business Tax Deduction
- Risks and Insurance
- Elements of a Valid Contract
- Using Standard Contracts
- How to Draft a Contract
- Reading and Revising a Contract
- Electronic Contracts and Signatures
- Accounting
- Accounting Basics
- Cash Versus Accrual Accounting
- Step 1: Keeping and Organizing Receipts
- Step 2: Entering Receipts Into Bookkeeping Software
- Step 3: Generating Financial Reports
- Accounting Software and Other Technology to Manage Your Business
- Defining Your Market
- Learning About Your Market: Market Research
- Cost-Effective Marketing Tools
- Digital Marketing: Your Online Presence
- Digital Marketing: Your Online Presence
- Digital Marketing: Your Message and Brand
- Starting Point: Your Website
- Other Online Marketing Methods
- Back to Your Website: Options for Building a Site
- Driving Traffic to Your Site
- E-Commerce: What’s Involved?
- Domain Names and Hosting
- Intellectual Property: Who Owns Your Website?
- When You Need a Written Buy-Sell Agreement
- Buy-Sell Agreement Basics
- Limiting Ownership Transfers
- Forcing Buyouts
- Establishing the Price for Sales: How to Value the Business
- Implementing Buy-Sell Provisions
- Sample Buy-Sell Provisions
- Employees Versus Independent Contractors
- Special Hurdles for Employers
- Hiring and Managing Staff
- Working With Lawyers
- Working With Accountants and Other Financial Professionals
- Internet Legal Research
- How to Use the Downloadable Forms on the Nolo Website
- Editing RTFs
- List of Forms Available on the Nolo Website
- Sample Chapter
- Don’t know whether enough customers actually want your product or service? Start small and grow slowly, based on what you learn along the way. Prioritize doing simple, inexpensive market research to learn more about your customers and get their feedback about your offerings.
- Don’t know how to manage a retail store or a small services firm? Break down your activities into systems, write out procedures and checklists, and consider using technology (like project management software) to help streamline operations.
- Don’t know how to create a website or use social media? Consider adding someone with these skills to your team, either as an employee or as an independent contractor.
- Hate doing sales? Consider bringing on a sales-oriented partner, manager, or independent contractor.
- Don’t know how to track your money or prepare financial reports? Read up on the basics (as in this book), occasionally hire a bookkeeper for some hands-on learning sessions, and use software that makes generating reports easy.
- For federal tax information and forms, go to www.irs.gov and type the name of the publication or form (or its number) in the search box.
- For general information about small businesses in your state, try “[your state] small business information.”
- For state tax information, try “[your state] tax agency” or [your state] department of revenue.”
- To find state sales tax or permit agencies, try “[your state] state sales tax and permits.”
- For information on LLC formation and rules, type “[your state] LLC filing.”
- Forms
Want to start a business? Don’t know where to begin? The Small Business Start-Up Kit shows you how to set up a small business in your state and deal with state and local forms, fees, and regulations.
We’ll show you how to:
The 12th edition is updated with the latest legal and tax rules affecting small businesses, plus social media and e-commerce trends.
“Covers a wide range of topics, from selecting a marketable name to small business laws, taxes, and contracts.”—Miami Herald
“Answers important questions, including whether to incorporate and how to price merchandise.”—Real Simple Magazine
Tax Forms
Business Planning Spreadsheets
Your Small Business Start-Up Companion
1. Choosing a Legal Structure
2. Picking a Winning Business Name
3. Choosing a Business Location
4. Drafting an Effective Business Plan
5. Raising Start-Up Money
6. Pricing, Bidding, and Billing Projects
7. Federal, State, and Local Start-Up Requirements
8. Risk Management
9. Paying Your Taxes
10. Laws, Taxes, and Other Issues for Home Businesses
11. Entering Into Contracts and Agreements
12. Your Back Office: Accounting and Technology
13. Small Business Marketing 101
14. Digital Strategy: Selling and Marketing Online
15. Planning for Changes in Ownership
16. Building Your Business and Hiring Workers
17. Getting Legal and Other Professional Help
Appendix
Index
Your Small Business Start-Up Companion
You don’t have an MBA. Hell, you’ve never taken a business class. You spent your college years studying literature and art history, and periodically dropping out to travel the world. And now you find yourself thinking about going into business for yourself—maybe as a photographer, an owner of a café, or the founder of a software company.
“Me, a businessperson?” you skeptically wonder. You keep trudging to work each morning, but as the hours tick by, you find yourself fantasizing more and more about kissing your 9-to-5 job goodbye. You jot down some notes, work out some kinks in your plan and continue to wonder whether it just might fly….
Unfortunately, most people who have toyed with business ideas this way never get to find out whether they would have worked. For a variety of practical, financial, and psychological reasons, most folks just don’t take the leap from idea to reality. Certainly in some cases this might be a good thing. Having consulted with prospective start-ups for many years, I know full well that not all business ideas are good ones. But I find it such a shame when a would-be entrepreneur with terrific ideas gets thwarted or hung up on issues that really don’t have to be terminal.
Folks new to the world of small business commonly report they get stuck because they don’t know how to do things like write a business plan, do market research, price their goods or services, make financial projections or reports, manage staff, or draft a contract. The truth is, none of these tasks involve rocket science. Each can be done—and done effectively—with a simple, systematic approach. That’s what this book offers: an easy-to-understand, step-by-step approach to all the important tasks an entrepreneur needs to tackle.
Although Conditions Change, the Elements of Success Are the Same
While so many aspects of business are subject to relentless change—technology and global economic conditions are two particularly volatile factors—the good news for those just starting a business is that the elements of success remain pretty constant. Businesses tend to succeed when they (1) offer products or services that customers want; (2) do so with efficient operations, savvy marketing, and consistent sales efforts; and (3) have solid financial management. Period.
Some of you may be saying “Sure, that sounds easy, but I have no idea how to actually do any of those things!” Know that you’re not alone, and learning how to break down the essentials of what makes a business successful is actually not terribly complicated. For example:
The chapters in this book focus on these and other important business tasks and systems, breaking them down into simple steps that are easy to get started. Even if you feel like a fish out of water in the “business world,” you’ll have a clearer idea of the key inner workings of a successful small business—and how to set one up yourself—once you read through this book.
Systems Facilitate Success
Instead of feeling overwhelmed at the novel tasks ahead, take heart in knowing that using some tried-and-true methods can radically boost your chances of success. Perhaps the most powerful of these is to establish systems for important tasks like managing finances, marketing your products or services, hiring staff, and so on. From simple systems like checklists and procedures put in writing, to complex software used to manage projects or clients, thoughtful systems can make a huge difference in how a business runs.
When efficient systems are in place— for example, you have clear, step-by-step procedures for entering receipts into your bookkeeping software, planning the year’s marketing initiatives, or performing annual reviews for employees—valuable mental time is freed up. When you and your managers aren’t constantly reinventing the wheel with your operations, you can think about really important things, like what industry changes are on the horizon, what trends are happening with customer tastes, or how to distinguish your company from its competition.
I encourage you to try to envision your business like a machine with various moving parts. Successful businesses manage to keep those parts moving with a minimum of direction from owners or supervisors—and well-established systems are the best way to achieve this.
Why This Book Is a Must for Start-Ups
Unlike many other small business guides, this one won’t spend your precious time quizzing you on whether you really want to start a business after all. If you need more help deciding whether entrepreneurship is for you, you should probably buy a different book. If, on the other hand, you want a book that cuts to the chase and explains what you need to do to plan and launch a business officially and legally, this book is for you. It’s organized so you can skip around to whatever topics you’re grappling with at the time; you don’t need to read the book from cover to cover. If you are already knowledgeable about a topic or you’ve already taken care of a particular task, you can either skip those chapters or use them as a guide to evaluate what you’ve already done.
Take the Leap
One of the main ideas to take away from this book is that there’s nothing mysterious or even terribly complex about the process of starting your own business. Whether you’ve drafted a highly detailed business plan with the help of accountants and consultants or you’ve tapped it out on a phone screen, the process of fleshing out that idea, refining it, and turning it into a legitimate business is the same.
This book will help you build an efficient operation that, over time, will free you from day-to-day business tasks so you can focus your energies on big-picture strategic development, which is at the heart of the role of business owner.
It’s way too easy to get mired in operational details, so it’s essential to create boundaries and find breathing room on a regular basis so that you can step back, evaluate market conditions, spot opportunities and threats, and take action to keep your business on a profitable course. You’ll need confidence to make important business decisions—and you’ll need guts, too. You may well find that some of the questions burning in your mind have no clear answer, because no one has asked those particular questions or tried those ideas before. You probably wanted to start a business in the first place so that you could call your own shots—but this can often be quite a heavy burden. You may not believe it now, but some days you’ll probably find yourself wishing you had a boss.
Entrepreneur’s Insight Stephen Parr, Founder and Director of Oddball Film and Video, a stock film and video footage company in San Francisco, California (www.oddballfilms.com) I started making video art in the 1970s. After a while I started collecting all these weird bits of film because it was cheaper than shooting it myself. I gathered all kinds of old, found footage, like military training films, educational films, home movies, and all kinds of other images, and put them together into montages, which I screened in nightclubs as background visuals. I was showing them all over— nightclubs in New York, Chicago, San Francisco—and I made some money by selling the tapes to the clubs. Then I started getting calls from companies in Silicon Valley that produce industrial videos, like training films and promotional programs for corporate trade shows. Video game companies were calling, too. Companies like Sega, Sun Microsystems, and Silicon Graphics wanted to pay me for my footage. Friends thought I should go into business selling the stock footage I had collected, but I didn’t know if I could make a living doing it. I didn’t know anything about the stock footage business. There were a few companies doing it, but they were in New York or LA, and they seemed really huge. |
But since I liked working with images and since the business had already started to take off on its own, I decided to formalize it. I wanted an interesting company name that conveyed what I did. We came up with Oddball. It’s a word that people don’t really use anymore, more of a ’40s or ’50s expression—an oddball is someone kind of weird, unbalanced, or unusual, you know? At the most basic level, my business involves finding, organizing, and preserving historical footage. And then distributing it. Our clients include ad agencies; news organizations; documentary and feature filmmakers; industrial, corporate, and music video producers; educational film- makers; and anyone who needs offbeat and unusual images. In one way, we’re like a library: We archive and license historical visual information. These days, I spend most of my time trying to organize and publicize my business. And I spend a lot more time trying to obtain films than actually looking at them. Still, what I do at Oddball is an extension of the work I’ve been doing since the 1970s. I guess it became a business the day I decided I wasn’t going to do anything else. |
You’ll need to learn to trust yourself, both when you feel optimistic and when you suspect that one of your ideas is less than brilliant. You’ll also have to develop a sense for when you need help and learn to be judicious in taking the advice of people around you. Part of the art of controlling your own destiny is accepting the wisdom of others while maintaining your own focus and direction. It’s not always an easy balance to maintain, but you’ll undoubtedly get better at it as you gain experience in running your own show.
The bottom line: Think hard, keep your mind open—and fight like hell to make your ideas a reality.
Take the leap.
Finding Government Agencies and Forms Online |
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Throughout your journey of conceptualizing, planning, forming, and running your small business, you’ll need to access information and forms from federal, state, and local government agencies and offices. Here are some suggestions on how to write a successful search query: Your search results will probably include ads paid for by companies that will, for example, file your LLC for you, at a price. Unless you want to use such a service, skip the results prefaced by “Ad,” and keep looking for a government site, normally ending with .gov. |
More Small Business Products From Nolo |
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Nolo’s website (www.nolo.com) offers books, software, online legal forms, a lawyer directory, and free legal information to help businesses solve specific legal problems. Here are some of the most popular business titles. You’ll find more online, including an online LLC formation service. Commercial Leases Legal Forms for Starting and Running a Small Business Forms of Ownership Nolo’s Online LLC Nolo’s Online Corporation LLC or Corporation? Choose the Right Form for Your Business Nolo’s Guide to Single-Member LLCs Business Buyout Agreements: Plan Now for All Types of Business Transitions Intellectual Property Trademark: Legal Care for Your Business & Product Name Tax Deduct It! Lower Your Small Business Taxes Home Business Tax Deductions: Tax Savvy for Small Business Workplace Laws The Employer’s Legal Handbook Consultant & Independent Contractor Agreements |
We hope you enjoyed this sample chapter. The complete book is available for sale here at Nolo.com.
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DOWNLOAD FORMS : The forms in this book are accessible online. After purchase, you can find a link to the URL in the Appendix.
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Posted on 2/7/2024
very detailed useful info -
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Posted on 2/7/2024
I'm new to the business. It was very helpful. -
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Posted on 2/7/2024
I've been trying to find a good book to help me out with business start up and I finally found it. There is all kinds of info that is beneficial to someone starting out in business. Awesome book. Will also be buying other books by NOLO. Thanks for a great book.
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