![]() Even if some have an upfront cost, they generally will save you more money, both in the short term, and especially as time goes on.įor example, if you’re an independent contractor who recently started their Uber or DoorDash business, you might think that your delivery app and maps service are all you need to be successful, but that’s not necessarily true. Many of these apps and software solutions are designed to save business owners time and money. With that said, a lot of people still don’t take full advantage of these new tools and devices at their disposal. A lot of this has to do with the fact that each and every one of us has a supercomputer in our pockets that’s capable of doing virtually anything. Much of the business landscape in 2021 would be completely unrecognizable and alien to someone a decade or two ago. Every business is going to be different, so only do what you feel as though will be beneficial to your business. In general, these sorts of guides and templates will have you do things like come up with business objectives, do some light market research, plant the seeds of what your budget may look like, etc. ![]() A simple Google search will point you to countless guides and templates on the best ways to come up with a business plan, and we would suggest picking one that you feel will work for you. ![]() There’s a wealth of literature out there on the internet on great ways to create a business plan, so we won’t go any further here today besides recommending highly that you do so. In fact, nearly 70% of people who have successfully started a business recommend doing so. Now it’s time to come up with a robust business plan. Okay, you’ve set up your business structure, likely as either a sole proprietor or an LLC. Keep in mind, this article shouldn’t be taken as legal or tax advice, and you should consult a lawyer or accountant before making any decisions you are unsure of. Look up your state or jurisdiction’s rules and regulations regarding starting a business as a sole proprietor or an LLC. Whichever direction you take, you will need to do your due diligence. In addition, you will very likely be required to have a separate business bank account and may need to keep your business assets and finances separate from your personal ones. On the other hand, if filing paperwork is something that you struggle with or gives you anxiety for whatever reason, starting an LLC may be more difficult than remaining a sole proprietor. Your taxes may be slightly more complicated to finish, but you may end up saving more money this way in the long run. Starting an LLCĪs it says in the name, if you start a limited liability company, you, the owner, have limited liability in regard to the goings-on of your company, meaning you won’t be personally responsible for things like debts associated with your business. For instance, if your business incurs any debts, your personal assets could be seized to pay those debts off. ![]() However, the biggest issue with being a sole proprietor is that you’re personally liable for anything and everything that occurs in regard to your business. Related: 3 Ways SMBs Can Save Money (And 3 Ways They Lose Money) You don’t need to file as a business, your taxes will be simpler, and you don’t need to do things like keeping a separate bank account for your business income and expenses. Being a Sole ProprieterĬompared to starting an LLC, being a sole proprietor requires less paperwork and less upfront spending. In general, the two options most closely associated with new independent contractors are sole proprietorships and LLCs. In the United States, there are many different types of businesses, including corporations, limited liability companies (LLCs), associations, nonprofits, trusts, and sole proprietorships, among others. That’s pretty cool! But whether you’re starting your own plumbing company or just driving for Uber as your side hustle, you’re going to want to choose the right type of legal structure. So you’ve made the choice to become be your own boss. ![]()
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