Starting a small business

vividstag31, it’s always easy to talk trash when you aren't the one actually out there doing the dirty work.
There are 300,000 unemployed people in America right now—and I’m not just talking about the occasional seasonal worker. A massive chunk of that group consists of folks who are eighteen or even slightly older, just starting out. It begs the question: where exactly is the money coming from to cover their basic survival? We're talking food, rent, clothes, the whole nine yards. You can't just expect people living on the edge like that to suddenly become productive members of the workforce overnight—it's just not how reality works. $10000 Whether you're talking about setting up a full-scale corporation or just a small independent LLC, we’re looking at a $15,000 to $16,000 price tag—and honestly? It’s a joke. These people are practically begging to work for pennies. $500Look, let’s get one thing straight—they aren't even touching the money. There is absolutely zero chance they’re going to pull off a loan. It’s just not happening. No matter how much those bottom-tier small business owners try to screw them over, they won't even move the needle by half a percent.
So, you’re telling me entrepreneurship isn't for everyone? Fine, maybe that's true—not everyone has the stomach for the grind. But that’s hardly the point here. Why on earth shouldn't we give everyone a fair shot at trying to build something? It would actually take some of the weight off the shoulders of the hardworking taxpayers who are already carrying this entire country. Instead of just throwing money into a void—paying for nothing while watching the bureaucracy spin its wheels—why aren't we actively incentivizing the people who are actually out there making things happen? I’m talking about the entrepreneurs who open up new jobs, the ones who actually pay their dues, and the ones who produce tangible goods. That's where the real value is. And don't even get me started on the whole credit situation—I won't go down that rabbit hole because, let's be honest, the government doesn't call the shots on loans anyway; that's entirely in the hands of the commercial banks. My point remains: stop wasting resources and start supporting the builders.
I honestly feel like the government should step up and provide some real support during those first couple of years—just to get things off the ground—and then, once you've actually found your footing, they can go ahead and sit on your back all they want.

P.S. — You actually skipped over quite a few of my previous posts.

In America, we have a massive number of unemployed people who simply have no desire to work. Keep that in mind.

Just because someone starts a business doesn't mean they’re going to hire anyone. Basic probability dictates that you can't have a society overflowing with successful entrepreneurs. Get it?

Try looking at it this way.
If every woman in the world were beautiful, then being beautiful would just be the baseline. But since only a small percentage are, a hierarchy naturally emerges where some are even more stunning than others. See what I mean? It's the same with business. Even if everyone were "successful," there would still be those who are significantly more prosperous and driven than the rest. Makes sense?

Furthermore, if everyone were an entrepreneur, who on earth would actually work for them?
Under capitalism, you have bosses and you have laborers. If you want to be the boss, you have to follow certain rules—just like anywhere else in the world. If you choose to be the laborer, you have to accept the rule that you aren't getting anywhere without capital.

It’s quite straightforward.

Success isn't about youth or poverty; it's strictly about having sound ideas.

Here is another painful truth for you.

LOANS ARE DESIGNED FOR PEOPLE WHO ALREADY HAVE MONEY, NOT FOR THOSE WHO DON'T.

Once you finally grasp my point, a lot of things will start to make much more sense.

Stop expecting the world to build something for you. Those who already hold positions of power will always remain light-years ahead. That is the harsh reality, and whining about it is useless.

Back in the early nineties, you could start a company with just $500, and we all saw exactly where that path led us.

Robert Kim, tell me exactly which of my points I haven't addressed? I've been buried in work the last few weeks so I haven't been following closely, and frankly, this nonsense regarding Iraq is weighing on me more than it should.

Oh, and one more thing: stop meddling in other people's business and focus on your own. Thankfully, thanks to Marcia, I'm working here and doing quite well, but I don't waste my energy on politics; I just try to navigate the situation to my advantage whenever possible.

A question for those well-versed in the world of American entrepreneurship: how exactly does the crowd that *can't* manage to set up an LLC or a corporation handle paying their taxes to the government?
To give you some context, I run my own business, though I also hold a job at a firm where I'm technically an employee (not my own company). As long as I don't have more than one client at any given time, this arrangement works for me. But here is my dilemma: if I don't have a formal business entity, how would I go about paying my local and federal taxes while simultaneously deducting all my legitimate business expenses—things like R&D for my company, equipment, daily operational costs, travel, office rent, and even the wages for contractors I hire on an as-needed basis? It’s quite confusing to me how things work here in the States, especially considering that the overhead for starting a company can be relatively high...
My point is, if someone who is currently unemployed possesses a valuable skill, why shouldn't it be straightforward for them to simply launch a small business? Even with the minimal costs associated with registration and bookkeeping, it makes sense; once they land a contract, they can fulfill their tax obligations to everyone they owe. Otherwise, they won't... They might just pick up a quick gig under the table, finish the job, and walk away. In that scenario, neither the individual nor the government wins. If entrepreneurship isn't their calling, then they should just remain inactive and report zero income... Once an LLC or a corporation sits idle for a certain period, the state eventually dissolves it automatically, though I know the specific procedures vary from state to state. I had always assumed that the current administration in America was genuinely interested in fostering small and medium-sized businesses, as that growth is ultimately beneficial for the entire country...

My business is still pretty fresh—only been running for a few years now. I’m not just talking about my own experience here; I’m speaking for everyone else out there. Take this scenario: someone starts doing side gigs, they’re actually good at it, they find their niche, and they realize there's real money to be made. Their first thought is, "Hey, I should just open my own LLC and go pro." On paper, that sounds like a win-win for everyone, right? But apparently not in America. Here’s the kicker: how many years of formal experience are you even required to have before you can officially register a trade business? Right now, you need at least 13 years of documented seniority in your field. If you don't have that, you're forced to hire someone who does (which is basically an extra tax on your startup) or spend five years working under someone else just to qualify for a master's certification. I’ve had to jump through all those hoops myself. And the justification? They claim this "seniority" guarantees the quality of service. Honestly, can anyone name a bigger load of nonsense? All this does is kill motivation. A talented person realizes the system is rigged against them, walks away, and goes right back to working under the table. I see this happening constantly. In my opinion, there’s a massive flaw here: the government seems only interested in collecting its cut and nothing else.

manager,
don't mix up running a business with being self-employed. A ton of people want to set up an LLC just so they can work for themselves, and honestly, why shouldn't it be that easy?
Maybe everyone should just go bust in a month—whatever. Natural selection, I guess. Doesn't bother me much.
What bothers me is the federal bureaucracy trying to live large on everyone else's dime. They cook up this nonsense just to protect their own cushy jobs, I don't get how you don't see that. It's got nothing to do with fair play or hard work. Bureaucracy just kills entrepreneurship. And unfortunately, it doesn't act as a filter where only the best survive; it just acts as a barrier because it demands a mountain of cash.

A lot of people scrape together some savings and then fail because they simply aren't entrepreneurs. Don't you think it would have been better if they realized that after paying $0.33, instead of $10?

piper,
you're thinking smart. Yeah, people work under the table and dodge taxes, and the government loses out. So, instead of actually making things easier for people, they just tighten the leash.

best,
Chris Ruiz10

If someone’s actually shaking in their boots because more small businesses or startups are moving into the area, they seriously need to take a hard look at their own business model. Honestly, I couldn't care less how many people are competing with me—I deliver top-tier work at a fair price, and that's what counts.

Manager
It’s just common sense that not everyone is cut out to be an entrepreneur. On average, more than half of all startups fail within their first three years—and a few more drop off shortly after—leaving maybe only one or two out of ten actually surviving past the decade mark. That's the reality in the US, and honestly, it's pretty much the same everywhere else. But like Gogo said, people should just go out there and give it a shot; let fate decide who makes it and who doesn't. Besides, it would be a lot better if we could all just collectively pretend that "under-the-table" work isn't even a thing!
The idea that everyone is going to become a business owner is frankly delusional. But look at it this way: if just one out of every ten unemployed people started a small solo operation, you'd see unemployment rates plummet by 20% overnight!!!
I can handle the red tape and the endless weeks spent drowning in paperwork, but having to pay $267 just to publish some pointless notice in the Federal Register? That is pure, unadulterated idiocy. We are dealing with far too much nonsense like that.
As for loans, I get it. It's like someone already pointed out: to actually qualify for a loan, you basically have to prove that you don't need the money in the first place.

Manager, we aren't exactly seeing eye-to-eye regarding MSPS. Just take a look at my previous response.

gogo said:manager,
It’s this whole federal bureaucracy thing that really gets under my skin—these people who seem perfectly content living off everyone else's hard work. They cook up these ridiculous regulations just to protect their own cozy little jobs, and honestly, I don't see how that isn't obvious. It has absolutely nothing to do with fair play or actual merit. This red tape is basically a chokehold on entrepreneurship. And the worst part isn't even that it filters out anyone who isn't a massive success; it’s that it forces you to hand over a mountain of cash just to get a foot in the door.
gogo

That’s pretty much what I was getting at, too. It’s not the fact that I have to grind to make a living that bothers me—I can handle that. It’s more about the fact that you have these privileged folks sitting in federal, state, or local government offices who wouldn't have the slightest clue how to run an actual business (with maybe a few exceptions), yet we're all expected to fund their lifestyles through our taxes. 👎

Does anyone know how much it actually costs to set up a small business here in the States? I’m looking at starting a mobile service where I wouldn't even need a physical office or anything like that.

Thanks for the help!

Give or take $200 for all the paperwork.

Just check the Small Business Act to see what’s actually required.

If you aren't renting an office, your business address is just wherever you're registered—basically your home address. There's also some list somewhere in the industry classifications, I can't remember the exact government publication number right now, but it lists certain types of small businesses that DON'T need a dedicated office space. 😉

But seriously, GO CHECK THAT

I suppose it really depends on which municipality you're dealing with and what specific profession you're in, but I'd estimate the cost falls somewhere between $600 and $267. You’ll likely need to provide a court clearance—basically proving you aren't under investigation or anything like that—along with a medical exam and your diploma, or some kind of official certification of your professional qualifications. It should probably take about two days in total.👍

Professional certification usually only applies to licensed trades, not independent freelancers. What kind of business are you actually planning to launch?

banderas said:I suppose professional certification usually only applies to licensed trades rather than independent freelancers. What kind of business were you even thinking about starting?

And what exactly counts as a freelance gig? I mean, even for those roles, you’d probably still need some sort of documentation to prove you're, say, a freelance artist.

Look, it doesn't work like that... you've got specific classifications in the Department of Labor for which roles require them and which don't—professional certification—and that mostly applies to hospitality or trades where you actually need a master's license to operate.

John Thomas2 said:Actually, no—those are the ones where you basically need a master's certification just to get by...

But isn't that essentially what a professional competency document is meant to prove? 😕

Steven Bishop2 said:Isn't that basically just a document proving you actually know what you're doing? 😕

Yeah, sure... but look, if you're running a specific type of small business—like an auto mechanic shop, for example—things change.

If I were an accountant trying to start my own tax consulting firm, I wouldn't need to pass some random competency exam to get licensed. But if I decided to open a bar? I’d definitely have to pass a food service or liquor certification exam. That's the whole point. 😉
What I'm saying is, if you check the federal registry, there's a specific classification for certain businesses that requires that kind of certification. 🙂

I think there might have been a misunderstanding here; you'll actually need things like a high school diploma, a college degree, or specific certifications... It really all depends on which type of small business you're looking to start.

Look, Oceanic, just tell us which business you’re actually planning to launch so we can finally give you an answer 😉

Sanny is starting his own small business!!! I actually run my own shop, so I wanted to reach out and see if there's any way I can lend a hand... maybe I can help him get things moving.🙂

My bad 😉
A bio should be mandatory, and honestly, the OP needs to step up and identify themselves...