Step By Step How To Start Your Own Home Business Steps 12-22
Step By Step How To Start Your Own Home Business Steps 12-22
If the product or service you sell is taxable, you need a state sales tax permit. Call the local tax agency, explain the type of business you have and what you sell, and ask if you need to collect sales tax. If you do, they will send you the necessary information and forms to complete. You also use this tax number when your purchase items for resale.
STEP #13 OBTAIN LICENSES & PERMITS
It's very important not to overlook any necessary license or permit. For example, some cities and counties require a general business license, and most have special laws regarding the preparation and sale of food.
Call City Hall to find out what is need for your particular business. In addition, Chamber of Commerce provide information on city, county and state licenses and permits.
STEP #14 SELECT BUSINESS CARDS, STATIONERY, BROCHURES
Spend time on the color, design and paper for these items. They make a definite impression-good or bad-on the people who receive them. If you are not certain what is most suitable and effective, you can consult a graphics designer or a creative printer whose work you like; however most stationary suppliers and home office software packages have easy to use free business card and brochure software that you can use. The office supply stores also have packages of preforated business card paper and matching brochure paper that you can inexpensively purchase to make your own until you settle on exactly which type you like--but do not purchase the cheapest quality.
STEP #15 OPEN A BUSINESS CHECKING ACCOUNT
Call several banks to find out what services they offer, and what minimum balance, if any, must be maintained to avoid paying a service charge. Also ask about credit card if you plan to offer this convenience to your customers. Bank fees can be significant, so shop around for the best deal.
If your personal checking account is with a credit union, see if it can also provide a separate business account. when you open your account, you may need to show the assumed name certificate and business license.
Finally, investigate obtaining a credit card in the business's name. If this is not possible, set aside a personal credit card to use for business expenses.
STEP #16 SET UP RECORD-KEEPING SYSTEMS
Since you are reading this online you are probably computer literate so you can simply use your favorite bookkeeping program for recording keeping and tracking your income and expenses. There are several programs available for free if you do not have one.
You can also put together a simple and effective bookkeeping system with an 8 1/2 x 11" three-ring binder, columnar pad sheets and twelve pocket dividers from the office supply store. For each month, set up columnar sheets for income and expenses. Use a pocket divider for each month's receipts, bank statement, deposit tickets, and canceled checks.
In addition, an automobile log for business mileage, and filing system for correspondence, invoices, supplier catalogs, client records, etc. are two other useful tools.
For more information on record-keeping, see IRS publication #583, Information for Business taxpayers.
STEP #17 CHECK IRS REQUIREMENTS
If you comply with basic IRS guidelines, you can deduct a percentage of normal household expenses (mortgage, interest, taxes, insurance, utilities, repairs, etc.) as a business expense. see the box accompanying this article and, for more detailed information, IRS publication #587, Business Use of the Home.
Also become familiar with these IRS forms: Schedule SE (compensation of Social Security Self-Employment Tax) and Schedule 1040 ES (estimated Tax for Individuals). Depending on circumstances, you may have to file them.
STEP #18 OUTFIT THE BUSINESS
Make a list of everything needed to start the business, but before you buy anything, look around the house for things you already own that are usable.
When you are ready to start purchasing, check the classified ads, online auction sites such as Ebay, craigslist, flea markets and garage sales. All are good, inexpensive sources for office furniture, typewriters, computers, answering machines, etc. However, purchase only what is absolutely necessary for start-up, and wait until the business is off the ground to get the extras.
STEP #19 DECIDE ON TELEPHONE REQUIREMENTS
Call the telephone company to find out the cost of a business phone in your area. If you cannot afford a separate business line, investigate the availability of signal ring. Signal ring provides you with one line, and two phone numbers that each has a different ring tone. Designate one number as your business number and advertise it as such. Then when a telephone call comes in you (and your children) will know that which ones are business calls and that only you are allowed to answer the business ring. Keep a record of long distance business calls and any phone expenses beyond your one basic no frills land line as they are a deductible expense.
Finally, absolutely consider the benefits of having of cell phone in addition to your land line. In today's world it is expected that you will be available even when you are mobile, and if you do not want the world to know that you are a one person office you can always forward the home phone to your cell phone when you are out of the office.
STEP #20 CHECK OUT THE POST OFFICE & UPS
Using a post office box as the business address down plays the fact you are home-based. It also prevents customers from dropping in at all hours.
While looking into box rental, ask for information on the various postal rates, particularly bulk rate, if you plan to do large or specialized mailings. If you mail many packages, check out United Parcel Service (UPS), as it is less expensive than the Post Office.
STEP #21 PURCHASE THE NECESSARY INSURANCE
Check with your homeowners insurance agent about a rider for your existing policy or the need for a separate business policy. Also make sure you have adequate personal and product liability coverage. Shop around, as each company has different rules regarding home businesses
To save money on medical insurance, join an association and participate in their group plan.
STEP #22 ORGANIZE THE HOUSE & YOURSELF
To have more time for business, organize and simplify household routines. Start by holding a garage sale to get rid of unnecessary possessions. Next, have a family conference and divide household duties, making sure each person does his or her part. The, set up a planning notebook to keep track of appointments, things to do, calls to make, errands to run, shopping, etc. Finally, set up a work schedule so you will not get sidetracked by TV, neighbor's visits, snacking, telephone calls, and random unproductive web surfing.
Creating and operating a home business is a wonderful and rewarding challenge. The satisfaction is not only in the money earned, but in doing what makes you happy.
Also see my article: Step By Step How To Start Your Own Home Business Steps 1-11
****
It is not wealth one asks for, but just enough to preserve one’s dignity, to work unhampered, to
be generous, frank and independent.
– W. Somerset Maugham (1874 - 1965) Of Human Bondage, 1915
Step By Step How To Start Your Own Home Business Steps 1222 - To learn more about this author, visit Teresa Bohannon's Website.
Like this article? Share it with your friends
STEP #12 OBTAIN A SALES TAX PERMIT
If the product or service you sell is taxable, you need a state sales tax permit. Call the local tax agency, explain the type of business you have and what you sell, and ask if you need to collect sales tax. If you do, they will send you the necessary information and forms to complete. You also use this tax number when your purchase items for resale.
STEP #13 OBTAIN LICENSES & PERMITS
It's very important not to overlook any necessary license or permit. For example, some cities and counties require a general business license, and most have special laws regarding the preparation and sale of food.
Call City Hall to find out what is need for your particular business. In addition, Chamber of Commerce provide information on city, county and state licenses and permits.
STEP #14 SELECT BUSINESS CARDS, STATIONERY, BROCHURES
Spend time on the color, design and paper for these items. They make a definite impression-good or bad-on the people who receive them. If you are not certain what is most suitable and effective, you can consult a graphics designer or a creative printer whose work you like; however most stationary suppliers and home office software packages have easy to use free business card and brochure software that you can use. The office supply stores also have packages of preforated business card paper and matching brochure paper that you can inexpensively purchase to make your own until you settle on exactly which type you like--but do not purchase the cheapest quality.
STEP #15 OPEN A BUSINESS CHECKING ACCOUNT
Call several banks to find out what services they offer, and what minimum balance, if any, must be maintained to avoid paying a service charge. Also ask about credit card if you plan to offer this convenience to your customers. Bank fees can be significant, so shop around for the best deal.
If your personal checking account is with a credit union, see if it can also provide a separate business account. when you open your account, you may need to show the assumed name certificate and business license.
Finally, investigate obtaining a credit card in the business's name. If this is not possible, set aside a personal credit card to use for business expenses.
STEP #16 SET UP RECORD-KEEPING SYSTEMS
Since you are reading this online you are probably computer literate so you can simply use your favorite bookkeeping program for recording keeping and tracking your income and expenses. There are several programs available for free if you do not have one.
You can also put together a simple and effective bookkeeping system with an 8 1/2 x 11" three-ring binder, columnar pad sheets and twelve pocket dividers from the office supply store. For each month, set up columnar sheets for income and expenses. Use a pocket divider for each month's receipts, bank statement, deposit tickets, and canceled checks.
In addition, an automobile log for business mileage, and filing system for correspondence, invoices, supplier catalogs, client records, etc. are two other useful tools.
For more information on record-keeping, see IRS publication #583, Information for Business taxpayers.
STEP #17 CHECK IRS REQUIREMENTS
If you comply with basic IRS guidelines, you can deduct a percentage of normal household expenses (mortgage, interest, taxes, insurance, utilities, repairs, etc.) as a business expense. see the box accompanying this article and, for more detailed information, IRS publication #587, Business Use of the Home.
Also become familiar with these IRS forms: Schedule SE (compensation of Social Security Self-Employment Tax) and Schedule 1040 ES (estimated Tax for Individuals). Depending on circumstances, you may have to file them.
STEP #18 OUTFIT THE BUSINESS
Make a list of everything needed to start the business, but before you buy anything, look around the house for things you already own that are usable.
When you are ready to start purchasing, check the classified ads, online auction sites such as Ebay, craigslist, flea markets and garage sales. All are good, inexpensive sources for office furniture, typewriters, computers, answering machines, etc. However, purchase only what is absolutely necessary for start-up, and wait until the business is off the ground to get the extras.
STEP #19 DECIDE ON TELEPHONE REQUIREMENTS
Call the telephone company to find out the cost of a business phone in your area. If you cannot afford a separate business line, investigate the availability of signal ring. Signal ring provides you with one line, and two phone numbers that each has a different ring tone. Designate one number as your business number and advertise it as such. Then when a telephone call comes in you (and your children) will know that which ones are business calls and that only you are allowed to answer the business ring. Keep a record of long distance business calls and any phone expenses beyond your one basic no frills land line as they are a deductible expense.
Finally, absolutely consider the benefits of having of cell phone in addition to your land line. In today's world it is expected that you will be available even when you are mobile, and if you do not want the world to know that you are a one person office you can always forward the home phone to your cell phone when you are out of the office.
STEP #20 CHECK OUT THE POST OFFICE & UPS
Using a post office box as the business address down plays the fact you are home-based. It also prevents customers from dropping in at all hours.
While looking into box rental, ask for information on the various postal rates, particularly bulk rate, if you plan to do large or specialized mailings. If you mail many packages, check out United Parcel Service (UPS), as it is less expensive than the Post Office.
STEP #21 PURCHASE THE NECESSARY INSURANCE
Check with your homeowners insurance agent about a rider for your existing policy or the need for a separate business policy. Also make sure you have adequate personal and product liability coverage. Shop around, as each company has different rules regarding home businesses
To save money on medical insurance, join an association and participate in their group plan.
STEP #22 ORGANIZE THE HOUSE & YOURSELF
To have more time for business, organize and simplify household routines. Start by holding a garage sale to get rid of unnecessary possessions. Next, have a family conference and divide household duties, making sure each person does his or her part. The, set up a planning notebook to keep track of appointments, things to do, calls to make, errands to run, shopping, etc. Finally, set up a work schedule so you will not get sidetracked by TV, neighbor's visits, snacking, telephone calls, and random unproductive web surfing.
Creating and operating a home business is a wonderful and rewarding challenge. The satisfaction is not only in the money earned, but in doing what makes you happy.
Also see my article: Step By Step How To Start Your Own Home Business Steps 1-11
****
It is not wealth one asks for, but just enough to preserve one’s dignity, to work unhampered, to
be generous, frank and independent.
– W. Somerset Maugham (1874 - 1965) Of Human Bondage, 1915
Step By Step How To Start Your Own Home Business Steps 1222 - To learn more about this author, visit Teresa Bohannon's Website.
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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