A Guide to Starting an Independent Business on a Budget

Starting an independent business can usually evolve from a hobby to a way of generating revenue. Maybe you’re finally growing your home cupcake operation and are taking delivery orders in your local area. Maybe you’re babysitting business is taking off. Either way, creating an LLC for a sole owner does have its perks. Here a guide on how to get that LLC and make your business official for less than the cost of a weekend of drinks.

Company Name

Think of an awesome company name one that explains a bit about what you do but also gives you the professional space to experiment once things progress in your business. Staying unique also helps stay in the mind of your customers.

Partner or No Partner?

If you have a partner it’s best to hire a lawyer so both you and your partner can better define what sort of agreement you have. With the growing pains of a new business, you’re bound to clash and having a written agreement can be extremely beneficial to both parties. The legal fees for a lawyer in your local area can vary but are usually around $300 per hour.

Knowing Your State

Depending on where you’ll be creating your LLC or Limited Liability Company, you should know if there are any unique regulations for every state. For example in New Jersey having a short name would require your registered agent (also required in New Jersey) to file a paper registration, not electronically. Making processing longer. So keeping small things like this in mind can help you save time in the long run. In other words, do your research.

Time to Make it Official

If you have a relationship with an accountant that’s great, however, some places would charge up to $500 to register your business. You can use this service, Northwest Registered Agent and register your company for half the price. Their basic package requires you to fill out your own EIN or tax ID number, which isn’t a very long process either and might save you some money upfront. But keep in mind afterward, it’ll be important to bring your accountant back into the picture to make sure everything looks good. This information will at least help you save and use your money more efficiently.

Keep in mind this is for an independent business with one owner registered. When bringing partners or employees it’s best to hire a professional to make sure your registration will be a smooth process.

Happy ventures!

 

SAM BELA Guide to Starting an Independent Business on a Budget