Once you realize that you have a good business idea that will succeed, it’s time to get your ducks in a row. Set up your business so that everything is legal and above board. While it can seem confusing and too hard to legitimize your online business, you’re going to be glad you did because it’s going to save you a lot of problems in the long run to have everything legal.
In this series, you’re going to learn the steps to take to turn your side hustle into a legitimate business by:
- Choosing a name that you can legally use
- Registering your business name
- Setting up your finances and accounting system and process
- Choosing your business structure
- Obtaining your federal tax ID number
- Understanding the laws regarding employees versus contractors
- Getting the required permits and licensure
- Protecting your intellectual property
- Protecting your family and partners
- Opening a business bank account
- And so much more …
After you get everything set up, it’ll be easier to renew everything each year, keep track of your income and expenses, and meet all the legal requirements placed on you by the federal and local governments so that you can do business.
The truth is, the first day you charge money for something is the first day you’re in business. But if you’ve been moving along, making money perhaps as a hobby without going through the legal hoops, you may be losing sleep worrying about getting it done or getting into trouble with the law.
First, don’t worry. You got this. You can legitimize your business now, and it’s not that hard to accomplish. Just slightly confusing if you haven’t ever done it. After you do set everything up right, you’ll be able to sleep at night knowing it’s all legit and appropriately done according to the law. Keep in mind that the information given is regarding the USA; however, most countries have similar rules and regulations. Although, some of the terminologies may be different in other countries.
Second, despite rumors to the contrary, most taxing and permitting authorities don’t really want to make your life harder. The worst that can happen is you have to pay a fine for not getting your business license on time or a fee for being late with your quarterly taxes. If you are fearful of this, stop worrying.
In most cases, you’re not going to get into so much trouble or owe so much money that you’d go out of business. Do keep in mind that you can still pay your federal taxes using your social security number by sending quarterly taxes to the IRS without buying a single business license or permit. The IRS only cares that they get their money. Just include your tax ID or social security number, use one of the forms they provide, and start doing that now.
READERS LIKE YOU ARE ALSO INTERESTED...
LET US KNOW WHERE TO SEND YOUR DIGITAL PLANNER.