Month: February 2019

Choosing a business structure is always a crucial step for entrepreneurs when making a decision to start a business. And while a business attorney can provide the differences and impact in each structure, it is up to you (the owner) to decide how and what you envision for your business. The future of your business in varying times of growth can mandate a change in business structure and often causes business owners to have regretted not taking the time to understand what each structure can mean when it comes to taxes and personal assets.

There are five business structures to choose from and each one has its own pros and cons. The right structure must be selected according to your business goals, but also be mindful of how you plan to structure your business in the future of how you want to run it. The 5 structures are:

• Sole Proprietorship

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Records dating back five years ago indicate a harsh reality; that more microbusiness runs out of business than succeed.

No one is safe; even long-established firms aren’t resistant to bankruptcy. Statistics by Kaplan Collection Agency show a steady rise in the count of businesses that apply for bankruptcy protection over the past five years.

For companies that offer B2B services to business customers, this calls for a well-thought-out plan to safeguard your company from the effects of a failing business.

A sinking brand can threaten to bring down your B2B service if it liquidates and exits without settling overdue debts.

Follow these steps to stay safe;

• Be in touch: Maintain communication with your bankruptcy-prone client. A healthy business relationship can lead to an excellent deal, even if your client goes bankrupt.

 

• Do not depend on a single client: It is not safe to depend on income from a

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All too often, businesses owners mix up and intertwine personal and work-related expenditures. If you’re passionate, sometimes your personal life can be your business and it’s easy to get the two mixed up.

Not keeping track of your finances however could lead to a messy and lengthy tax bill, so make sure you keep on top of finances in order to run your business efficiently.

It’s very important to separate the money that relates to your personal and business accounts, especially if you’re just starting out. Your business should be treated as a separate being, and should be managed as such too.

Manage Separate Accounts

Your bank is the best place to distinguish between your personal and business finances. Business accounts have access to special interest rates compared to standard accounts, so make sure all income and expenditures such as buying stock or buying shares, go through the designated … Read More