Starting a legit business

[jIM_Ohio]

Problem number one, you have to have a business to join the local chamber of commerce. I don't yet have a business. Problem number two, it's not free. There are dues. I can't even find out what they are without committing to having someone contact me. Even if I did/could join, what attorney/CPA is going to hold my hand and walk me through the basic process of setting up a business for free?

I get invited to chamber lunches for free, it just depends on who you know.

I will re-emphasize if you own a business, focus on meeting people.

Some can become clients and help you grow the business
some can refer you clients and help you grow the business
some you might hire as trusted advisors to protect or grow the business
some might know people which can become clients or advisors and help you meet them.

Focus on meeting new people, not just the business itself.

[dojo]

I cannot give you detailed information about starting a business, since mine it's in another country (and another continent). My advice would be to 1. discuss matters with someone WHO KNOWS what's best for you (even if it means you pay the consultant) and 2. try the MINIMAL possible way to 'enlist'. The smallest of business forms for starters, since you're not making too much money.

Here's my example. Here we have something we call Physical Authorized Person (PFA as we call it), which is the simplest of possible business forms. It means you do a job and get paid for it as a 'business'. Instead of this, I chose to get set as a small firm, which means I need to work with an accountant on a MONTHLY basis (so I'm paying her fees), have a lot of paperwork and pay a truckload of taxes.

If I chose to be a PFA, I could do my own accounting and pay something like 16% of my profits (OK, they invented new taxes lately, but still not as many as with a small firm). The reason I didn't do it, was that I had to have a diploma in web design (or anything iT related) and my college degree is in Letters. Of course, if I wasn't the idiot I am, I could have done a 300 dollar course (less than 2 weeks) about web design (taught by some people who maybe know 1% of what I do) but I'd get the darn certificate. No, I chose a small firm and paid the money to establish it and paid in taxes enough to curse my initial choice at least 3 times/day

So ... have someone who knows the stuff and don't go overboard. You can always 'upgrade', when you're getting a better established business

[Gailete]

Dojo -- that's interesting to hear of how things are done elsewhere. Here in the US some of the regulations are state and or city mandated things, but for federal (USA) purposes, you can choose several forms of businesses. The easiest is a small personal business called sole proprietorship. We got a sales tax license for our state for both businesses (we have two) and at tax time we fill out a schedule C along for each separate business with our other personal tax forms. There is no rule about needing an accountant to do any paperwork and as I have taken classes in both accounting and tax preparation, I do all the paperwork. The types of businesses go up from there. My parents, before my step-father retired, had a simple corporation to hold the business separate from their personal lives. Since he drove a tank of propane around and made fuel deliveries, in case of accident you sure didn't want people coming after you personal for damages, they could only go to the corporation and it's insurance. Our businesses aren't likely to incur any major problems of the type of fuel truck crashing or catching on fire, etc. I guess someone that works in a not too structured business can work as a contractor and just file for having miscellaneous income but you don't get to subtract out business expenses which could end up costing you more than setting up as a business. I know we depend heavily on our expenses against the business to keep our income from being totally taxed away.

Almost forgot to mention. As the others have mentioned it is good to have mentors and others that can give advice from the trenches so to speak. My husband's father and several of his uncles were all self-employed their whole working lives as well as his 2 brothers and sister. We are on good speaking terms with a lawyer as well that has given us some excellent advice as well and at one point put us in contact with another type of lawyer that worked on our case for free. We have had need of major work from our lawyer which was obviously paid for, but he has been happy to answer quicky questions. I came from a punch the time clock kind of family and they all had trouble understanding us being self-employed. So especially if someone isn't self-employed you probably want to take any advice they give with caution until verified independently.