Your Business Entity and Accounting

There are many ways to set up your business entity and you can get tons of advice about this online. Reading and researching your options is the best way to make an informed decision. Never be afraid to ask questions either. There are tons of people looking for advice out there and as many with the answers.

Basically your options are: (Click on each link for a definition.)
Sole Proprietor or Partnership
Limited Liability Corporation (LLC)
Corporation

There are pros and cons with each one so do your homework!

My company is set up as an LLC. Just as with the business plan, you can create the LLC on your own or with the aid of an attorney, software package or a website that specializes in setting up companies.
Going with a website or doing it yourself can be very cost effective as long as you educate yourself on what is required. Check out the following link for an affordable option.
Legal forms for your limited liability company.


You also need to set up your business legally within your state and get the proper licenses to operate. You will need a business license and a salon license. Check your State Department of Licensing website for this information. You should be able to apply online. If you want to be a cosmetologist and provide hair services yourself, you will need the education & licensing for that if you don't already have it. This is only required if you intend to provide hair services yourself.

SimpleFilings is an interesting website that handles all your business filing from incorporation to licensing and tax id. The convenience of doing it all in one step and for one fee may be worth the cost - but again do your research first.

Register your company, Incorporate or form an LLC, file your DBA (Doing Business As), Get a Website and Toll Free number Click Here Now to view SimpleFilings site.


In addition to all this, it is best to think about your accounting early on. All of the fees associated with the set up of your business need to be tracked as tax deductions. Get a good bookkeeper, or get trained in the use of Quickbooks - or both. If you establish your accounting at the beginning you'll be glad you did.