Start & Run a Graphic Design Business. Michael HugginsЧитать онлайн книгу.
to deal with the shareholders, board of directors, and officers. There are also more documents that need to be filed such as Articles of Incorporation, an Annual Return, notices of changes in the board of directors, and change of the address of the registered office. The corporation must also maintain certain corporate records, file corporate income tax returns, and register in any province or territory in which it carries on business.
2. Business License
Business licenses are permits that are issued by government agencies allowing you to conduct business in specified jurisdictions. Business licenses vary between countries, states, provinces, and local municipalities, and sometimes you may be required to have more than one license or registration certificate even if you are just operating out of one location. Be sure to check with your local government office and local municipality regarding the steps you need to take in order to acquire the necessary license(s) you’ll need. Sometimes this is as simple as registering your business name and paying a fee.
There is also the matter of taking care of taxes that are your responsibility once you have registered your business. Ask your local state, province, or city department of revenue for a copy of sales and use tax rules and regulations to be sure you understand and adhere to your local laws.
3. Employer Identification Number or Business Number
Another item you’ll need in your business is an Employer Identification Number (EIN) if you are in the US or a Business Number (BN) if you are in Canada. This is a number for your business that is similar to your social security or social insurance number. It’s what the Internal Revenue Services (IRS) or the Canada Revenue Agency (CRA) uses to keep track of their business taxpayers.
All businesses require an EIN or BN even if you don’t have employees. The only exception to this would be a sole proprietorship. In this case you could use your social security number or social insurance number in lieu of an EIN or BN. However, if you are a sole proprietor who wants to hire employees, then there is no option — you’ll need an EIN or BN.
In the US, to get an EIN you’ll need to complete an SS-4 form with the IRS and send it to your region’s IRS service center. You can obtain this form from the IRS, your local bank, or your accountant. The process takes about four weeks and there is no charge for the process.
In Canada, you’ll need to contact the CRA to set up your company’s CRA accounts and then file a request for a Business Number. You can register for your Business Number by phone, fax, mail, on the Internet, or in person. You’ll need to fill out an RC1 form to request your Business Number.
If you are in the US, keep in mind that you may also need to get a state employer identification number from the state in which you are doing business. This is so they can also keep track of the money you are paying in taxes to the state in which you have employees. The Employment Development Department (EDD) is the office that will issue these numbers to you. Check with the IRS and the EDD for all the information you will need in order to file your employee federal and state taxes. Don’t forget to check with your local city business office for any additional taxes you may need to pay.
4. Open a Business Bank Account
When you register your company name you’ll need a business bank account. This presents a level of professionalism in your business, but it also keeps a division between your personal and business life. You should always keep your business and personal check-writing separate. This way you’ll be able to receive and make payments from your company instead of from your personal account. It will help make bookkeeping a lot easier. If you choose to incorporate, a business account is a must.
Most banks require that you have an EIN or BN before you can open a commercial checking account. See your local bank regarding the types of accounts and services it has available for small businesses like yours. Each one has varying service fees and cost advantages.
5. Hire an Accountant
There will be a little more to your business bookkeeping than you may think. It’s not quite as simple as balancing your checkbook. There will be specific things you will need to do and to set up to get your business up and running smoothly. Taxes are one of those areas that can be greatly affected by the way you set up the books.
My advice is to hire an accountant before you get started. Talk to the accountant about tax procedures, company structure, record keeping, accounting software, and any other accounting-related questions you may have. The accountant can also be a resource to you when it comes to planning the type of business structure you should choose. Your accountant will most likely ask you questions about your vision for the company and how big you want it to be so that he or she can help you make the right decisions up-front before your business gets going. The accountant can also help you set up your books in advance to prepare for your growth.
Your accountant can also help you find a competent bookkeeper to help you with the monthly bookkeeping if you choose to hire one. Although some accountants may provide this service to you, it’s advisable to have bookkeeping done independently by someone else subject to review by your accountant.
6. Insurance
Insurance is a must when you own your own business. Yes, it can be expensive, but you will adjust your design fees accordingly to cover the costs. Starting your own business carries with it a lot of risks, and unfortunately you’re the one taking them. Whenever possible reduce the risks in your business with sufficient insurance coverage.
If you will be working on your own, it’s important to remember that you are the business. You need to protect your business’s biggest asset — you. In the event you become sick or disabled, if you are not insured properly, your entire business could be wiped out. It only makes good sense to protect yourself from the great unknown of the future.
Another reason you need insurance is because you work in the communications industry. Your clients could be small businesses or multimillion-dollar corporations. Each one of these companies uses your design and communication material to get their message out to the world. As a result, your work could be visible in local, national, international, and maybe even in a global marketplace. If something you create causes financial damage to a client because of a mistake or oversight, your client could hold you responsible. To fully protect you and your business let’s look at some of the kinds of coverage you should consider.
6.1 Health insurance
Health insurance covers long-term sickness, hospital care, or medication and treatment. There are many types of questions you’ll need to consider. Things such as, how much insurance will you need? Do you need coverage for dependants? How much will it cost? Who is the best provider to purchase it from? All of these questions depend on your specific needs and current circumstances so it’s a good idea to sit down with an insurance broker and discuss your unique situation. Discuss your options in detail before making any decisions.
6.2 Disability insurance
Disability insurance covers you against accidents that can prevent you from working in the future. I recommend trying to get this as early as possible. It’s not an easy thing to get for a solo entrepreneur and in some cases it can be cost prohibitive. If you are able to get disability insurance, and you can budget for it, it’s a good idea. If nothing more than for the peace of mind it will bring while you are building your business. It provides you with a safety net in the event that something unforeseen should happen.
Many insurance companies have stringent rules and requirements for their applicants and not all people are eligible. The sooner you can get disability insurance the better. If you wait for a while before applying, your circumstances may change and your ability to get this type of insurance might be severely affected. Talk to your insurance broker regarding all the products and services they offer. They may even be able to offer you an incentive or price reduction if you use them for both your