New to Business (I mean actual business)

[MrKoob]

I understand the sign industry from a design angle; this also includes equipment and the supplies required.

Where I'm stuck isn't at "what cutter to buy?', but instead, "Should I file as Sole Proprietor, LLC, Corporation?", then when I do decide "How are the taxes handled?", "What do I hold back?", "If I eventually want to hire employees, how do I go about that?". Basically, "the basics" of beginning a start-up. I'm not going to just jump right in and start buying equipment, but before I can start a business, I actually need to know how a business should be ran from a legal angle. Most of my existing experience has come from working for others, but they already know how these questions are handled.

I don't expect actual answers to the original questions, (unless you want to respond) , what I'm looking for are resources like books, business groups, etc. Just a good resource that can actually explain the very basics.

 

[Service Sign Co]

I'd RECOMMEND for a newbie Signwarehouse whatever plotter they have current.comes with LXi software and lifetime support.

 

[DRPSignsNGrafix]

to answer your questions there are advantages and disadvantages to how you do your business. It depends on where your located. if your in the usa. u can do a DBA which is a business operating on your personal social security number for federal tax reasons. U can do a corporation LLC but there are a lot of disadvantages there as well. I would suggest talking to a CPA in yoru area. He will guide you in the right way. U have to pay taxes and the amount depends on sales, expenses, revenue, profit, income, pay, and a bunch of other vairables. Talk to a local CPA and go to the library there are all kinds of books out there. Also google the SBA they can help you a lot.

 

[wildside]

as already stated, check out the sba..

also look for your local chapter of SCORE, and see if the local community college has a small business development office, their services are usually free

as far as how to set it up, a CPA is the best advice, but you'll get off the ground faster being a DBA, easy to get started and less cost

we are a DBA, and the CPA advised us on how to change as times change and will give us a heads up when he feels we might be in a better tax situation

starting up is a daunting task, many fail, many survive, i say survive over succeed for a reason, which only you will learn on your own

good luck

 

[MrKoob]

Thanks for the info. I've been reading whatever I can get my hands on. I'll consult with a CPA and see where it goes. I'm sure one day it'll just click and I'll know exactly what to do. (Maybe), In the mean time I'll just keep reading the Posts when I can and keep planning.

 

[Ken]

I'm sure many of us do not know where Denison is? That would help.
Ken

 

[Bogie]

My girlfriend is darn near a CPA (been grouching at her to take her test, but she's deaf, and really freaked by the large testing process).

She had me set up an LLC.

 

[ChiknNutz]

I'm currently a Sole Prop, but my CPA has suggested either a LLC or S-corp as our income increases. There's a point where you will end up paying more in taxes as a sole prop than if at one of the other business entities. We are planning to switch over, most likely to the S-corp, for CY 2008. Also, as a corporation, there is an add'l level of security for personal assets if something were to go awry and someone wanted to get sue-happy or whatever.

 

[iSign]

GraphiXtreme is right on the money.

I switched to an LLC filing as an S-corp 1-1/2 years ago.

Last year I made $100K, but I only took a salary of $40K, so all my self employment taxes applied to the $40K salary, not the $60K in stockholder distributions. Unless you reinvest it in the business, the stockholder distrubutions are still taxable income, but on the business tax return, not your personal return(you need to file both when you become a corporation) so the tax obligation is much lower, like almost $10K in reduced tax over sole proprietor. (My bookkeeper would have that figure better... I'm guessing a little, but an educated guess)

My advice is to find an exceptional bookkeeper, like I did. You will need to do payroll, which represents many very important filings on a constant basis with critical demands on you to be accurate and punctual. I've gotten pretty good at business over 11 years... but I would never trust the payroll to myself.

If you won't be making a whole lot, the issue of protecting your personal assets from any possible claims against the business still may be an important one, and could still justify structering yourself as an S-corp, or any LLC... BUT, if you have no assets AND low earnings... like I did from 5 to 10 years ago... then just being a sole proprietor is OK.

 

[MrKoob]

GraphiXtreme is right on the money.

I switched to an LLC filing as an S-corp 1-1/2 years ago.

Last year I made $100K, but I only took a salary of $40K, so all my self employment taxes applied to the $40K salary, not the $60K in stockholder distributions. Unless you reinvest it in the business, the stockholder distrubutions are still taxable income, but on the business tax return, not your personal return(you need to file both when you become a corporation) so the tax obligation is much lower, like almost $10K in reduced tax over sole proprietor. (My bookkeeper would have that figure better... I'm guessing a little, but an educated guess)

That's where I lose it and need the CPA advice. I know a lot of it's not as complicated as it sounds and for some of it comes naturally. Most of the framework of any business is going to be the same whether it's a Sign Shop or Widget Reseller for example. I'm trying to avoid the complex of "My boss is doing it wrong and if I owned my own business I'd do it this way..." Reality is, there's probably a very good reason my boss may do something a certain way. He sees his budget and know what he can spend it on. Oh well I'm young.. I have time.

 

[Just Another Sign Guy]

and do not just pick a CPA out of the phone book, find one that you can communicate with, that understands you your goals your business and that you trust. this is not a area to look for the cheapest imho