How to Start a Small Business in Colorado
A business, whether big or small, always starts with an idea. A well thought through plan, determination and costs keep catching up but they are all just as necessary. Having the ability to transform a mental idea into action is just as important for a successful entrepreneurship in Colorado as the idea itself. One of the best strategy and may be the only successful one is to break down a bigger goal into smaller, achievable tasks so that it doesn’t get all that overwhelming.
Also, in most cases a mindset of getting started is very important because without it, you will keep procrastinating or perhaps even fall behind if your focus is too much on the anxiety coming with the task. Simplification of the task is really necessary so that it doesn’t cause too much stress and the tasks are easy to achieve. Some of the basic yet practical steps to starting up a small business in Colorado include;
Setup Legal Entity in Colorado
According to law, a corporation is an entity with its own legal rights separate from its owners. There are many corporations to choose from including LLC, S corporations, C corporations, B corporations, nonprofit corporations and close corporations and you can choose any one from them that suits your needs best.
Obtain Tax ID in Colorado
To set up your finances, you need to get your hands on a federal tax ID number. Obtain a tax ID number via Internal Revenue Service(IRS) website. In case of single member LLC or sole proprietorship, a social security number might also beused.
Open Bank Account
An online business calls for opening up a business bank account. An online payment service or a PayPal account will do if you intend to make transactions through your business website.
Build Website in Colorado
In the remote past, website building was a difficult task but the latest technology does all the web hosting and domain registration for you in a manner that leaves little to no worries for you. Everything in the present millennial era is online so make sure that you have a good enough web presence with a personalized website and aesthetic social media profiles.
Sign up for Merchant Services
Merchant account for a business lets it accept credit and debit card payments. A merchant account requires an agreement with the member bank with an already existing relationship with Mastercard and Visa.
This is a type of online marketing that lets people find your services when they look for a similar keyword. These are the ads that appear in the first search of your search results.
Follow these steps and you are all set to embark on the action stage of your mental idea. The rest keep following as you keep progressing with your endeavors. Read More
What Do You Need To File Your Taxes?
Filing your taxes can be no doubt a tiring task as it involves quite a lot of documentation and all of which must be submitted on time. At such a crucial time, it is essential to make sure nothing gets left behind. Here is a complete list of all that you need to file your taxes;
List of Things You Need
Personal and Dependent’s Information
This includes your and your spouse’s social security or tax ID number or your LLC tax ID number. Alongside, dates of birth, childcare records, other adult’s income in home and form 8332 showing the delivery of a child from custodial parent to non-custodial parent, if applicable.
Sources of Income
Fill out forms W-2 for employed and state tax refund (1099-G) for unemployed; Schedules K-1, Forms 1099-MISC, records of income to verify unreported amounts on 1099s; records of all expenses made; assets used in business and related information for depreciation; if there is an office space at home; other rental and retirement incomes; savings, investments and dividends and other incomes and losses.
These include ownership, medical expenses, charitable donations, childcare expenses, health insurance, educational expenses, tax prep fees and job expenses, retirement and other savings, local and state tax or sales tax, and federally declared disaster.
Sole Proprietorship and LLC is Different than Corporations and Non Profits
It is ideal to know the difference between the type of business entity you hold and the tax it demands from you. A sole proprietorship declares you as the sole owner of the business while a partnership means there are two or more than two business owners. A limited partnership is more complicated to set up and requires to be mentioned in one’s income tax. LLC and corporations are a little bit more complicated to set up and maintain, but they differ regarding their taxes. LLC requires being mentioned in personal income tax because it does not have a separate tax entity (LLC tax ID number is your own) whereas certain types of corporations do have their separate tax entity.
More often than not, filing your tax can come with a lot of hassle, therefore, having a qualified professional accountant well versed in dealing with similar situations in the past can prove to be very beneficial in ditching any problem that IRS might point out later on.
This is very important because a delayed entry is the last thing you want after going through all the process of documentation for filing your taxes. Take care of the deadlines, and you can save yourself the trouble of delayed entry. Read More