Do Business Well

Here are two examples of what can happen. Let’s say that you currently own your own home, which is worth $150,000, and it has a mortgage of $70,000. You also have stocks and other holdings worth $25,000. You intend to open the business with your savings of $20,000. After six months in business, you decide to close down due to continuous losses. You are out of cash and owe suppliers $40,000. You signed a lease that has eighteen months to go at $500 per month. You also failed to pay employee tax deposits of $10,000.

Your vendors, the landlord, and the government will go after your home, stock, and anything else that isn’t nailed down to collect the $59,000 you owe. And they will have every legal right. Continue Reading »

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You’ll need to decide before opening the business what form your business will take. In the United States there are four approaches available. In other countries it will be necessary to check with local resources to determine the choices offered.

Sole proprietorship. Most very small businesses use this enterprise type. It is the simplest from a tax and legal standpoint. In many cases part-time businesses using the sole proprietor approach will not even segregate their personal financial affairs from their Continue Reading »

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