kami@klmcpa.com (805) 526-8355
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New Business Formation

New Business Formation

Thinking of owning your own business? Opening your own business is exciting and thrilling. It's everything that comes after the excitement and thrill has worn off that dictates whether a small business will make it or not.

A methodical plan of action is needed to fulfill your dream or goal of being your own boss and running a successful business. Success lies in the approach you choose to take. Kami L. Molin, Certified Public Accountant can help you avoid the common pitfalls that many new small business owners make when starting their new venture.

New Business Formation considerations:

  1. Prepare an initial business plan to clarify your marketing, management, and financial plans

  2. Determine your start-up capital needs

  3. Identify sources of start-up capital and backup sources, if needed

  4. Evaluate and quantify your borrowing power so you know how much money you can qualify for

  5. Select a business structure that best fits your needs by evaluating tax advantages, legal exposure, ease of operation and portability, should you need to relocate.

  6. Select the right accounting software by evaluating your budget, needs and hardware

  7. Prepare a Cash Flow Budget so you know exactly how much money you need to keep the business alive each month for the first few years

  8. Establish billing and collection procedures to maximize your cash flow

  9. Establish procedures to monitor and control costs

  10. Setup a home office so you can maximize your tax deductions

  11. Prepare and file all required state and local licenses and permits

  12. Prepare and file your application for your Federal Employer Identification Number

  13. Provide payroll and payroll tax filing when you bring on your first employee

  14. Comply with employment laws so you don't get hit with fines and unhappy employees

  15. Identify your business insurance needs

  16. Develop a solid Partnership Agreement: an extremely important document for all new partnerships that will  prevent a tremendous amount of financial and emotional problems down the road