Building a business from scratch is not an easy task to accomplish, because prior to the all famous business operations, there’s tons of things that a business owner should do. For example, you should at first have a business idea, check its potential, and only then start the process formation.
If a business is profitable enough, you’ll obviously earn big profits and enjoy all the advantages of being in charge of a company; but before reaching this level, you should at first invest in your business.
There will be lots of expenses that you’ll have to make in order to move your business and develop it to a certain point. For example, you will have to spend some money on business entity formation, hiring employees, rent (if you’re operating from a physical location), opening up a new website, marketing, advertisements and promotions, basic office equipment, and so on. As you can see, starting a new business is not that easy in terms of finances!
Here’s a tip from our Prestige Auditors team: estimate your costs, and predict all the expenses you’re going to have – this will help you a lot, especially when you’re organizing and managing your finances, trying to figure out your financing methods, and so forth. Want to know more? Statistically, microbusinesses need investments in the amount of $2000-3000, but don’t stick to this information, each and every business is unique.
But Is There a Business That Is Cheap to Start?
Well, each and every business requires investments and expenses, so don’t spend your time on looking for non-money-based businesses; they just don’t exist! However, there is still a business which is way more affordable than others – sole proprietorship.
Sole Proprietors – owners of this business entity are practically the same as their business. This affects not only the business operations, but also the way your business is taxed. With the help of this business, you’ll pay less, because separate taxes are not for this type of business entity! As you can see, one of the hardest parts of the business – taxes – are not a problem for Sole Proprietors!
As we said, sole proprietor and sole proprietorship are almost the same thing! Isn’t it wonderful that you automatically turn into a business while being the person who is in charge of all decisions and finances?
We have good news for you! Sole proprietors won’t spend all that time stuck behind a computer, behind a messy desk covered with papers and restless nights; this business entity requires neither Articles of Organization (that are meant for LLCs) nor Articles of Incorporation; it is almost document-free! Normally, Sole Proprietorships need to file a Schedule C with the IRS (Internal Revenue Service), but even that is more affordable than creating an LLC or a corporation.
ATTENTION: Even though this type of business entity seems perfect, sometimes your business needs more than that! Analyze your business, read all the advantages of each and every business entity that exists, and only then decide. However, we at Prestige Auditors recommend that you contact a professional service like us, in order not to miss any important detail regarding your business; even the slightest detail matters when it is all about choosing a business entity!