Nicholas P. DiNatale, CPA -
Certified Public Accounting & Business Advisory

Business Resources - FAQ

I am thinking of starting a new business, what do I need before I can start?

For the purposes of this discussion, we will assume you have arranged the cornerstones of your budding business: a great product or saleable idea, a catchy name, secured cash for a few months expenses, and the support of your family. You will face many challenges as your business develops, and the security provided by cash in the bank, and the knowledge that your family believes in you can make the difference between your success, or search for other employment.

The next step is to choose a CPA. Although it sounds like I am blowing my own horn, you will find that an experienced CPA will be your best source of information and guidance on the variety of issues that will face your business. Will you be subject to sales taxes? Do you plan to hire employees? Which type of entity should your business become? These are important questions, and your CPA will help you with the answers, as well as assisting with filing for the necessary licenses, identification numbers, etc. A CPA will also be able to point you towards an attorney who can further address any federal or state laws governing your operation, as well as drafting any legal documents or articles of organization.

Once you select the city where your business will be located, you will most likely need to register for a business certificate with your city hall and the state tax department. Generally, you will be required to show proof of occupancy; a copy of the rent agreement for your office should suffice here. Entrepreneurs who are starting in their apartments may have to get the blessing of their landlords, while homeowners can provide proof of ownership. State licensing requirements will also vary. A call to your state tax authority will provide you with the information regarding licensing in your particular state. You can now bring your business certificate to the bank of your choice and open a checking account. Again, your CPA should be able to point you in the direction of a business-friendly bank. All banks are not created equal, and a business friendly bank will provide you not only with an economical checking account, but small business lines of credit, e-banking, lock box and credit card support, and experience with your type of operation.

Armed with your check, you should go to your local office superstore and purchase one of the better accounting software packages. We recommend the latest version of QuickBooks as being not only inexpensive, but very easy to learn, flexible and powerful. You should also learn the basics of cash flow management, and other basic business ownership issues. Believe it or not, the IRS offers excellent courses to train the new business owner in these and other topics. Although it feels like inviting a vampire into your home, you can safely visit any IRS office for a brochure or visit the IRS website. With these tools, you are now ready to join the world of the self-employed. You will have to jump through hoops at times, but the result, success, is worth the effort.

We can assist you in addressing these challenges, as well as setting up your accounting software. We are familiar with the issues and obstacles facing you as you begin your new career, and can help you plan ahead and avoid some common pitfalls. If you would like us to assist you in setting up your systems and procedures, send us a request.

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