Posted on 12/19/2023 10:18:05 AM PST by MissEdie
The most important thing is getting in the habit of keeping meticulous bookkeeping, and ensure you pay all your taxes. Check with small business owners in your area for what taxes and fees you will be responsible for.
Failure to pay taxes, or get all the permits you need, WILL shut you down quickly.
Pay any sales taxes or employment taxes on time.
Million dollars companies have been forced to shutter for not remitting taxes paid by third parties like sales tax or employee withholdings.
As a business attorney, my advice is to NEVER be a sole proprietor. The owner is completely liable for all the debts and obligations of the business. At the very least, become a sole-member LLC. As an LLC Member (think “shareholder”), your personal assets cannot be levied on to satisfy debts of the business as long as you maintain separate personal and business accounts. A slight overgeneralization, but true.
Get a good lawyer and form a corporation (such as an LLC); get good insurance.
I agree and you are right for sole member LLC vs sole proprietorship - I was just against business partners based on past experience when responding to the poster for starting a new business with a partner.
Let me give you a little advice from someone who has already published one book, and I am currently in the process of writing two more. ME!
No one reads books.
If I sell 100 books in one Month via Amazon, my book will moved up to the top 100 over all sales category.
That is overall sales.
Now, if you break it down by categories, depending upon which it belongs to, a mere 5 books sold can put you in the top 10.
Considering Amazon has over 50 million different published books they sell, that says a lot about how few books are being purchased these days.
Trust me, NO ONE is reading books these days.
Unless you are a well known author and can get huge national publicity, you will not sell many books.
Just me, but it does not sound like an industry I would want to waste my time, money, or energy on.
Yet, good luck, because you never know Americans could decide to toss their smart phones and turn off the computer and start reading books again, but I doubt it.
We have entered the era of ignorance, where even the most intelligent American cannot get their nose out of their phone.
My tip
Find a need and fill it (your niche) Be different.
Your product should create value, something people want to pay for.
Get a good lawyer to write an ironclad partnership agreement and set up a Subchapter S Corporation.
Robert DeLong wrote: “Even higher for restaurants.”
No doubt, even higher for bars.
A fellow had a fairly profitable thing going here. He owned at least five, maybe more small bars. He would sell any of t them if you asked. He would even finance the deal. He did require a down payment. After six to nine months, the bar would go broke, he would forclose, pocket the down, and the bar would be back for sale again. He was not the type to do business with.
Be able and willing to LOSE every Penney you invest and the friendship of your business partner.
If okay with that, go ahead.
But he does sound like a scam artist. Perhaps he offers free drinks the day before when he knows a buyer is coming around with interest. 🙂
When I was younger I though owning a bar would be very easy money with perks, in the right location of course, with the right clientele. 🙂
Absolutely - I have to work hard to get these guys (almost always guys) who come in and say “We’re best friends forever, we’re going 50/50” to realize that somebody has to have the final say. I have tie-breaker language in those operating agreements that lets them designate 2 people who then pick one other person to help them make the decision.
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