Starting a business is no small feat. There is a lot of research and work that needs to be done to get everything up and running smoothly. Consider all the major factors, from sorting out the legal documents to figuring out what kind of business model you want to use.
Dorado Management Services is a company that specializes in helping businesses get off the ground. Their team of experts can help with everything from business planning to marketing and sales. If you’re thinking about starting a business or taking your business to the next level, Dorado Management Services is a great resource to have on your side.
So what exactly needs to be done to start a business? Below is a list of some of the things you’ll need to take into consideration:
The Business Structure You Want to Use
Although it seems simple enough, picking the right business structure is a very important step for anyone launching a business. There are different options out there, and what you choose will vary depending on the pros and cons. With a business structure being so important, Dorado Management Services is there to help. These are the four main structures considered by business owners.
Sole Proprietorship
This is going to be the easiest way to start a business. All someone has to do is start selling a product or particular type of service, and everything else falls in place. There’s no need for a tax ID number, a business name, or anything formal for that matter.
Everything goes on the 1040 form for taxes, Schedule C. Many people love the simplicity of a sole proprietorship, but there are disadvantages as well. The self-employment tax of 15.3% stings quite a bit. This breaks down to a 12.4% Social Security tax plus a 2.9% Medicaid tax.
There’s also the personal responsibility people must take on with a sole proprietorship. If there’s any exposure to risk, it’s probably best to go with another business structure.
Limited Liability Corporation
A Limited Liability Corporation (LLC) is a very popular business structure. People don’t have to worry about lawsuits on a personal level since they are protected from the operations of a business. There’s also the ability to get a business name and create a brand, which is important to grow a brand in-person or online. There’s some simple documentation available that makes it much more legitimate than a sole proprietorship.
There are some rumors out there that LLCs will help save on taxes. Owners still have to pay like a sole proprietorship. That means self-employment taxes and the potential of operational costs on a state-by-state basis.
People who rent property almost always go the LLC route. The same goes for an operational business considering a move to an S Corporation later on. Finally, partnerships are perfect for LLCs since both partners are thoroughly protected.
S Corporation
If a small business owner feels like their operational business is growing, it might make sense to start with an S Corporation. There is a lot of asset protection with an S Corporation, and significant tax savings could be a driving factor.
With an S Corporation, shareholders and officials are never liable for debt. As the owner of an S Corporation, the income is not hit with a self-employment tax. That helps save quite a bit of money right there.
C Corporation
Last but certainly not least is a C Corporation business structure. Fortune 500 companies almost exclusively operate this way, as it is a way to raise capital and go public quickly. Someone just starting in business won’t need to go with a C Corporation, but larger corporations operate differently.
It’s highly recommended by a lot of lawyers and other professionals for small business owners to stay away from C Corporations. They don’t create magical tax deductions, and it’s not going to make a business seem any more legitimate. It’s much easier to go with one of the three previous business structures instead.
The Business Name and Domain Name
What’s in a business name? A small business owner takes the proper time to figure out a good business and domain name for what they are going for. Dorado Management Services doesn’t always help individuals find these names, but they can provide some assistance if necessary.
Target Market
Identifying a target market is crucial for any business to have success. It takes time to build name recognition in a market, but most can figure it out with some help.
Dorado Management Services provides some assistance with identifying target markets. It takes some time and patience like anything else, but success rates rise when its owners find their niche.
The Legal Aspects of Starting a Business (Permits, Licenses, Contracts, Etc.)
No one enjoys talking about all the different paperwork and legal aspects of starting in business. Dorado Management Services helps entrepreneurs hoping to make this as simple as possible.
As tedious as all this is, it’s crucial to keep a business legitimate and operating legally. Dorado management Services has helped countless companies fix issues that they have so that they don’t get hit with huge penalties. It’s always better to start right, so they offer solutions for brand new companies as well.
Everything from the most basic paperwork to helping manage legal issues helps tremendously. They have plans available so that people can pick and choose what they get help with. Customization is always key.
Taking On The Challenge of a Business
This is just a starting point for starting a business. A lot more goes into starting and running a successful operation. With the proper planning and execution, a business can thrive. Dorado Management Services can help every step of the way.