Starting a small business

Justin Walker24 · 2002-12-20T00:44:18+00:00

So, I’m thinking about finally biting the bullet and starting my own small business, and honestly, my head is kind of spinning with all the moving parts! Does …

feralharbor92 Newcomer

4 messages
joined Oct 2007

#201 · Oct 18, 2007

First, you need to decide whether you want to set up a sole proprietorship or an LLC. This shouldn't be based on how you work together, but rather on the pure business logistics—things like taxes, specific incentives, and overall operational structure. Running two separate sole proprietorships requires more upfront capital and higher overhead costs. If you already have doubts about how well you'll mesh as partners, the distinction between an LLC and a sole proprietorship doesn't really change the core issue. Besides, with a partnership agreement in a sole proprietorship setup, you can clearly define your legal relationship within the company. In my opinion, starting out with a sole proprietorship (backed by a solid partnership agreement) is the smarter move to test the waters... it’s much cheaper than an LLC, so if things don't work out between you, the fallout is minimal. The only catch is that with a sole proprietorship, you're personally liable for business debts, which might be a dealbreaker for some...

rowdytrucker28 Newcomer

3 messages
joined Oct 2007

#202 · Oct 18, 2007

We’ve decided to start out as a sole proprietorship. We plan to run things that way until we build up enough seed money to eventually transition into an LLC.

The only thing we’re stuck on is whether we should open a joint sole proprietorship with two equal owners, or if we should just open two separate businesses and work together under a contract, settling our finances through invoicing. I really value having everything above board.

My concern with a joint proprietorship is that it might stop feeling fair down the road if one of us ends up pulling more weight while we’re legally tied to a 50/50 split.

I actually dealt with this once before with a guy who offered me a partnership in his business. I was supposed to contribute and work as a partner, sharing all the liability, but when it came time to split the profits, he treated me like nothing more than an employee while he played the boss and owner. In short, the business belonged to him, not us. It didn't last long because I have no interest in getting burned by someone dishonest again.

I’m looking for the smartest way to join forces as two capable, hardworking people in a commercial venture. We settled on starting as a small business, but given my bad experience with a previous owner, I want to be fully informed. I don't have the space or the time to make rookie mistakes again.🙂

The partners I work with—both small business owners and those in larger corporations—suggest that we should each open our own individual businesses and just operate together as a sort of business cluster or association.

As far as legal obligations and taxes go, we aren't too worried about the costs. Even though running two separate businesses is more expensive, more money stays in our own pockets; basically, you keep exactly what you earn.

Am I thinking about this the right way?

feralharbor92 Newcomer

4 messages
joined Oct 2007

#203 · Oct 18, 2007

You’re absolutely right. Look, if you already suspect there might be some friction down the road—and let's face it, it almost always comes down to money—it’s much smarter to have everyone set up their own LLC from the jump. You should draft a formal partnership agreement that covers every possible scenario for your business relationship. That way, you’re fully protected. It really is the cleanest way to handle things... no disputes over cash, no arguments over business decisions...

rowdytrucker28 Newcomer

3 messages
joined Oct 2007

#204 · Oct 18, 2007

feralharbor92 said:You’re absolutely right. Look, if you already suspect there might be some friction down the road—and let's face it, it almost always comes down to money—it’s much smarter to have everyone set up their own LLC from the jump. You should draft a formal partnership agreement that covers every possible scenario for your business relationship. That way, you’re fully protected. It really is the cleanest way to handle things... no disputes over cash, no arguments over business decisions...

thanks 🙂that's pretty much how I'm looking at it too 🙂

Amanda Gomez47 Member

32 messages
joined Oct 2007

#205 · Oct 20, 2007

1. Can you start your own small business without having any specific professional certification (like, say, just having a high school diploma)? I’m wondering if that applies to both sole proprietorships and LLCs too.
2. Regarding the actual work itself; am I allowed to open a business or an LLC in a field that’s completely different from my official profession or what I actually studied?

briskviper13 Newcomer

1 message
joined Oct 2007

#206 · Oct 21, 2007

Can I actually start my own small business while I'm still a student? And if that's a no-go, how many years of work experience am I supposed to have before I can jump in, if that's even a thing?

Richard Lewis16 Active Member

221 messages
joined Sep 2009

#207 · Oct 22, 2007

you can actually start one without any formal schooling 😁
if we're talking about an LLC, you really need specialized certifications, but with a corporation, you aren't tied down like that... you can basically list whatever business activity comes to mind, for instance, I listed flower cultivation even though I have absolutely no intention of getting my hands dirty in a garden, but hey, who knows what the future holds 😁)

Amanda Gomez47 Member

32 messages
joined Oct 2007

#208 · Oct 24, 2007

Richard Lewis16 said:you can actually start one without any formal schooling 😁
if we're talking about an LLC, you really need specialized certifications, but with a corporation, you aren't tied down like that... you can basically list whatever business activity comes to mind, for instance, I listed flower cultivation even though I have absolutely no intention of getting my hands dirty in a garden, but hey, who knows what the future holds 😁)

Okay, but what kind of credentials are we talking about? Can I start a sole proprietorship if I only have a high school diploma?
And regarding my profession or background—so, for an LLC, my formal training doesn't matter at all, but for a sole proprietorship, it's a requirement?

Richard Lewis16 Active Member

221 messages
joined Sep 2009

#209 · Oct 24, 2007

As for setting up a small business, I think you’d probably need to have all those specific credentials ready—you know, like if you were opening a local corner store or a retail shop—so you can run a quick check on the IRS website or whatever government portal handles that, because honestly, I’m not entirely sure how the whole process works for a sole proprietorship... I only really know the drill when it comes to a full corporation.

hiddenmaker16 Newcomer

3 messages
joined Oct 2007

#210 · Oct 24, 2007

Depending on the specific industry you choose to enter, there are certain professional certifications or degrees required by law. If you don't personally hold those credentials, you'll need to hire someone who does to serve as your manager or designated supervisor. It really all boils down to the nature of the business you intend to run...
When it comes to forming an LLC, however, you aren't required to have any specific educational background or professional licensing at all...
Also, just so you know, a high school diploma is perfectly acceptable for setting up a sole proprietorship...

cosmictrucker14 Newcomer

2 messages
joined Apr 2007

#211 · Oct 25, 2007

There are both licensed and non-licensed trades.

Non-licensed trades are those where you aren't required to pass a professional certification or master's exam to operate.
Licensed trades, however, require a master's certification before you can get started.

You can find more specifics on this in the federal regulations regarding licensed and privileged trades—it’s all laid out in the official government code... 👍

Brenda Adams15 Newcomer

6 messages
joined Mar 2007

#212 · Oct 26, 2007

Hey, I’ll just toss this question here instead of cluttering things up with a whole new thread...
I was wondering if, when you're setting up an LLC, you can bundle different things together—like, say, a construction business, a restaurant, and some retail stuff all under one umbrella? Or does the IRS require you to stick to basically the same industry for everything?
I know this probably sounds like a pretty rookie question, but hopefully you guys get what I'm driving at.🙂

Sophia Parker6 Newcomer

4 messages
joined Oct 2007

#213 · Oct 26, 2007

When you register a business with the Secretary of State, you get to list your business activities. You can pick just one, or you can stack them up—it's entirely up to you. Technically, you could be running a side hustle growing Martian squash while simultaneously working construction and flipping used flip-flops. You can do whatever you want. Now, whether looking at that bizarre spectrum of industries makes you look remotely professional to a potential client is a different story altogether...

Richard Lewis16 Active Member

221 messages
joined Sep 2009

#214 · Oct 27, 2007

I mean, who actually sits down and reads this stuff?
I’ve just been jotting down every little idea I can think of for things my company might eventually tackle one day... 😁

analogfox24 Member

12 messages
joined Oct 2007

#215 · Oct 28, 2007

ul7;10910287 said:Fine, but what about educational credentials—can I actually launch a sole proprietorship if I only have a high school diploma?
As far as your profession or specific expertise goes—in an LLC, your formal credentials don't really matter at all—but when you're looking at a sole proprietorship, they certainly do.

When you're first setting up a sole proprietorship, your formal education isn't a barrier—you just register whatever business activities you intend to pursue—however, once you actually start operating in specific sectors like retail or hospitality, you’ll be required to either hold a specific degree, pass a master craftsman exam, or
hire someone who actually possesses those qualifications.
Starting a sole proprietorship for a smaller venture is significantly more cost-effective—we're talking roughly $233—and much less bureaucratic than forming an LLC.
And if you're currently employed elsewhere, you can still open a sole proprietorship too.

Edward Richardson2 Newcomer

3 messages
joined Feb 2008

#216 · Feb 15, 2008

So, I'm thinking about launching a travel agency, but I want to set it up as a sole proprietorship. From what I've read in the regulations, that should be an option, but I’m a bit lost on the logistics—like where to go, how to file, and the best way to actually get it off the ground. My plan is to sign a contract with a major tour operator, but I also want to design and sell my own custom packages. I already have some office space available in my family home, though I don't plan on being physically present there; I'm aiming to run everything online. Does anyone know if this setup is actually doable???

Edward Richardson2 Newcomer

3 messages
joined Feb 2008

#217 · Feb 15, 2008

Edward Richardson2 said:So, I'm thinking about launching a travel agency, but I want to set it up as a sole proprietorship. From what I've read in the regulations, that should be an option, but I’m a bit lost on the logistics—like where to go, how to file, and the best way to actually get it off the ground. My plan is to sign a contract with a major tour operator, but I also want to design and sell my own custom packages. I already have some office space available in my family home, though I don't plan on being physically present there; I'm aiming to run everything online. Does anyone know if this setup is actually doable???

Come on guys, I really need some help here....🤷

Lisa Brown5 Newcomer

2 messages
joined Feb 2008

#218 · Feb 16, 2008

Edward Richardson2 said:Come on guys, I really need some help here....🤷

Just call the Chamber of Commerce—you'll get the info straight from the source.

There—I helped you. 🙂

Greeting

Anthony Bennett6 Active Member

102 messages
joined Feb 2008

#219 · Feb 18, 2008

Whether you set up as a sole proprietorship or an LLC, it’s all essentially the same thing

The travel agency business actually operates under its own specific set of regulations...

Just head over to the American Travel Association website and you'll find everything you need

- You'll need to pass the exam to become a certified travel manager
- Two years of hands-on experience in the industry
- A dedicated office space of at least 170 square feet with a valid building permit

There are a few other little details too

Edward Richardson2 Newcomer

3 messages
joined Feb 2008

#220 · Feb 18, 2008

Anthony Bennett6 said:Whether you set up as a sole proprietorship or an LLC, it’s all essentially the same thing

The travel agency business actually operates under its own specific set of regulations...

Just head over to the American Travel Association website and you'll find everything you need

- You'll need to pass the exam to become a certified travel manager
- Two years of hands-on experience in the industry
- A dedicated office space of at least 170 square feet with a valid building permit

There are a few other little details too

- I already HAVE the license to be a manager
- But I DON'T have the years of experience, though honestly, I don't see those two years mentioned anywhere in the actual legal requirements...

Starting a small business

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