Do any of you own your own business NOT weed related.

[superhighme]

Just curious if any of you are entrepreneurs? Obviously you dont have to say company names or links or any of that stuff if you do not feel comfortable advertising things like that on RIU for anonymity purposes.

Im just curious because in about a year I'll be doing my own Graphic Design business, which I know there is a lot of competition, but the good part comes in because my boyfriend of 5.5yrs is also starting his own MUCH more expensive business in a year doing audio post-production. He's will have worked at his current studio for nearly 3 years at that point and they are kind of joining together and the studio he works at will send all their mixing to my boyfriend and they will just be doing the tracking for bands.

Im curious to know any tips current business owners have. Mistakes you made (so we dont make them and any advice on start up.

the BF's bank loan will be about $40k or so to buy the gear he needs, but he has no overhead cost. Will have business immediately upon start up at $25/hr from the studio he works with now and when he does his own work not from the studio it will start at $30/hr and increase to $50/hr by the 2nd year based on demand. $50/hr is still really cheap, so I know we can make that especially in our location. Im pretty sure a bank will see him fit to get a loan even in these economic times.

Anyways, Id love to hear stories about success and failure and whatever else you have to input. Tell me about your business, what it is, but you dont have to say names/websites. ect.

Happy Tokin.

 

[vh13]

I own my own business, been in business for myself since I was 17.

The only tip I can offer is don't quit your day job, and never give up. It's a long, hard road getting any business started.

 

[aba]

well if I was him I wouldn't take a loan from the bank because of the interest rate its gonna take him a long
time to see profit coming... but its your choice.

 

[Roseman]

Best advice that I can offer is to write down every thing to lower the tax bill.

On day ONE, start a new checking account to track expenses, and keep up with your time and every penny you spend, and every minute too. WRITE EVERYTHING DOWN.

Start a LLC, locate it in Delaware, costs about $400 to $ 500 at Incorprate.com

When you go to the bank to borrow money, keep up with the miliage, lunch money spent, gas money, time etc.........try to accumulate as many expenses as you can to deduct from any profits.

 

[superhighme]

Best advice that I can offer is to write down every thing to lower the tax bill.

On day ONE, start a new checking account to track expenses, and keep up with your time and every penny you spend, and every minute too. WRITE EVERYTHING DOWN.

Start a LLC, locate it in Delaware, costs about $400 to $ 500 at Incorprate.com

When you go to the bank to borrow money, keep up with the miliage, lunch money spent, gas money, time etc.........try to accumulate as many expenses as you can to deduct from any profits.

why delaware. we plan to get an LLC business license, but it only costs $180 here and why license it in a state that you dont live in?

 

[Sunnysideup]

You are not licensing, you are incorporating.....Yes, you can incorporate in Delaware even if you don't live there. I have done this. It saves you money on taxes, Delaware is easier on taxes for corporations.

 

[Roseman]

why delaware. we plan to get an LLC business license, but it only costs $180 here and why license it in a state that you dont live in?

Delaware does not have STATE Income taxes. We have a Delaware mailing address for our business, and we pretend we are ther to avoid taxes. The website www.incorporate.com got us the LLC and gave us the Delaware mailing address.

 

[juststartin]

Delaware does not have STATE Income taxes. We have a Delaware mailing address for our business, and we pretend we are ther to avoid taxes. The website www.incorporate.com got us the LLC and gave us the Delaware mailing address.

Nice

 

[DownOnWax]

Am I crazy or would that Not be considered Fraud?

 

[KP2]

only if you get caught .


best thing i can say if if the biz pays, pay the biz. as ben franklin said, Keep thy shop and thy shop will keep thee

 

[tilemaster]

i own a small tile company...sole priorship..spend more money means less taxes...20'' rims...there for the company truck..eneregy bill percentage of the house wuz for the buisness..thus percentage of yearly bill write off...cell phone..internet..resteraunts...miliage..mechanical work..clothing..hotel stays...all write offs..the best advice i can get is find a really good CPA to do ur taxes..

 

[DownOnWax]

Yeah, like someone said earlier "don't quit your day job".

DO quit your day job, be prepared to work more than you ever have in your life, and be prepared to put back any and all proffit back into the business.

I don't know how it is with Graphic Design but I in the Restaurant world, you are lucky to survive the first year, even luckier to survive the second year, and if you break even in the third year then you have accomplished what 80% of all new businesses fail to do.

But I will agree that it is a good idea to be incorporated since you as the individual are protected against any legal issues that may arise in the future. I do know with any kind of business you need to protect yourself from individuals as well as the US Government.

There are other benefits for incorporating your business like, if you invest any money into the corporation you can take out what they call drawbacks from the business at any time without having to pay additional taxes. When I did own my business, I invested $20K of my own personal money and was able to take out cash to get by rather than giving myself a paycheck which costs the business a lot (state & federal tax, workers comp, etc.).

My best piece of advice would just be legitimate and hire an accountant! You will have way too much on your mind to worry about keeping the books straight! And the IRS has no sympathy if you personally make a mistake, they WILL come after you.