by: Cecile C. Weich, Counselor at Law
I write this article for all frustrated executives, born-again housewives and all women who want to start their own business.
DO YOUR HOMEWORK! RESEARCH YOUR MARKET! AND MOST IMPORTANT: HIRE A LAWYER!
The lawyer will advise you in the intricacies of being an entrepreneur, should you be a corporation or an incorporated business entity. Remember, you will pay taxes on both business forms, but one may be less expensive than the other and more beneficial to your type of business. If you are doing business with a corporation, you may want to be a corporation for appearance sake. Your attorney must work with your accountant (the next person to hire along with your attorney), to determine whether your business should be a corporation.
Your personal assets may be involved at this juncture. Remember, whether or not you are a corporation, no bank will lend you money without collateral and the only collateral you, as a new entrepreneur will have, is your personal collateral, ie: your home, your car, your stocks and bonds. Although technically corporations are formed to avoid personal liability, a new entrepreneur will probably have to put up her own personal assets to secure the initial funding for her business.
After you have researched the market for your business, found a good location, you will be called upon to sign a lease to sign a lease for this location. Again, you must consult with your attorney for the best possible terms to enter into a proper lease with your landlord. Remember, a good lease can make or break your business.
Perhaps you have the kind of business that does not initially require outside space and you want to start up your business in your own home. A service business is uniquely suited for home offices. However, you must consult your accountant so that you take proper tax advantages of this business arrangement.
You must not neglect to speak to an insurance person so that you are properly and adequately covered for business and professional liabilities.
If you want to hire staff, you must consult with all of the professionals, especially your attorney, to determine whether this staff will be “on the books” or independent contractors. You must also consult with your attorney to understand the ramifications of the laws pertaining to sex and age discrimination as it relates to your “shop”.
What about your business equipment? Should you buy it new or used, or should you rent it? Again, you must speak to your attorney and your accountant to find out the best possible tax ramifications for handling office equipment.
Are you confused? Don’t be. If you are really determined to start your own business; if you have that “entrepreneurial spirit”, you are going to make it.
Cecile C. Weich is a Prominent Attorney and Lecturer and one of America’s leading authorities on Women’s Legal Rights. She has been featured and quoted in major publications including The Wall Street Journal, New York Newsday and The National Law Journal, and she has been a guest on many radio and television shows including Court TV, Phil Donahue, The Today Show, MSNBC, CNBC, McGlaughlin Report, Oprah Winfrey, and Larry King Live. Ms. Weich is also co-founder of the New York Association of Women Business Owners and was the New York state representative to the National Women’s Political Caucus, she has been married since 1958 and has two grown sons.