Starting a small business

fadedmoose4 said:Look, once we're in the USA, nothing about bookkeeping is actually going to change.

I honestly have no clue what you were trying to get at with that comment. If anything, keeping the books here in America is way more of a headache because the rules are constantly shifting under our feet compared to somewhere like Germany.

What I meant was that I’m hoping our profession finally starts getting the respect it deserves, but look at where we are right now. Sure, keeping the books in America—especially over this past year—is harder, and anyone in the industry in an EU country knows that too. But unfortunately, very few business owners actually realize that. Whether they handle accounting in-house or hire an outside firm, you almost always hear them complaining that accounting is just another unnecessary expense. In my circle, that's unfortunately the standard attitude.

ketty66, let me apologize again. It's true, I can be a bit toxic sometimes, and I'm fully aware of that flaw. I didn't mean to turn this thread into a personal vendetta, and I won't bring it up again. But I truly believe that the accounting professionals lurking on these forums know exactly what I'm talking about because they've dealt with it firsthand at least once in their careers. Regarding setting up an LLC, the link lili p. posted should help you out. If everything goes perfectly, the startup costs should be roughly $283 (this includes the notarized statement of non-indebtedness). The whole process can vary depending on your state or which court handles your filing, so everyone's experience is different. In my case, we hit a snag right at the start when the court rejected our proposed business name. Luckily, we found out just two days after submitting it, so we didn't waste too much time 🙂 (which would have cost $3.25). As for the other costs after the initial setup—like meeting minimum technical requirements for retail, for example—I can't speak to those from this position, though another user touched on them in her reply. Generally speaking, the costs of forming an LLC are similar to starting a sole proprietorship, though there are specific pros and cons to choosing a corporation over a small business, depending on what the owner expects. You can find plenty of comparisons and experiences online if you want to dig deeper.

I find myself nodding along to everything said above... Truly... I couldn't agree more with a single word of it.

I have a few questions regarding setting up a small business:

1) Can I run a design and programming business out of my own apartment, or am I required to rent a dedicated commercial office space?

2) Does the property need to have a specific certificate of occupancy?

3) Are there any specific Boeing regulations or standards tied to this type of work?

Thanks!

So, here’s the deal if you're looking to get your business up and running: the building you pick can't be older than 1968, which I know sounds a bit specific, but that's just how it works. You've also got to make sure you have all your building permits squared away and that there aren't any messy legal battles or lawsuits hanging over the property. Honestly, you could even run the whole operation out of your own apartment, provided it actually checks all those same boxes.

Jesse Chase32 said:So, here's the deal: I spend my free time flipping stuff online, basically buying low and selling for maybe a 15-35% markup. Honestly, for a college student just trying to get by, things are actually going pretty well right now. Over the last 11 months, I’ve managed to pull in about $2333 in profit. I'm starting to wonder if I should go through the whole headache of registering a business or if I should just keep it on the low. Like, is this even worth turning into a formal thing? I don't really have a website or anything to promote myself, so I'm just kind of flying under the radar at the moment.

I'm curious about this too 😁
I have a friend who does the exact same thing as him, and since she isn't registered with the IRS or anything, she makes a decent amount of cash.
I was thinking about starting something similar, but I think I’d actually want to make it official—I'm a little nervous about working under the table.

I haven't seen much from LoisKent lately. Just wondering if they're still around. kaže:
I've got a few questions about setting up a small business:

Can you run a design or programming gig out of your own apartment, or are you legally required to have a dedicated commercial office space?

So, does the space actually need a certificate of occupancy? Short answer: yeah, it pretty much does. You can't just move into a building and start calling it a business or a home if the local zoning office hasn't given you the green light. It’s one of those bureaucratic hoops that feels like a massive headache, but it exists for a reason—basically to make sure the place won't fall down on your head and that it meets all the safety codes. Skipping this step is a quick way to get shut down by the city or find yourself in a legal nightmare later on. Better to deal with the paperwork now than have a building inspector breathing down your neck mid-project.

Are there specific MIT requirements for this kind of work?

Thanks.

Might be a little late to the party on this one, but here's my two cents:

It could even work in a residential area.
It’s helpful, sure, but let’s not pretend it’s a requirement.
MIT doesn't set those kinds of standards for this type of work.

So, my father runs a small business, and now he’s considering setting up an LLC on the side. I guess the question is whether he can actually run both at once, or if he’d be forced to shut down his current business just to get the LLC started?

Second question: if it turns out he can hold both, would he be stuck paying social security and other taxes for both entities separately, or does it just count as one?

Thirdly, if having both is an option, could he potentially put his current business on hiatus—basically just opening it up whenever there's actual work to do—or does that kind of thing even exist in our legal system?

Thanks.

If this isn't the right place for this, maybe an admin can move it somewhere appropriate; I couldn't find anything better than this thread without digging through ancient history...

I’m still technically employed, though my notice period runs until January 10th, 2013, at which point I’ll be officially out of a job. Before that happens, I want to start laying the groundwork for my own construction business. (in San Diego) I’d like to get moving on this immediately, so I have a few questions:

1. Is it legally permissible to open a sole proprietorship or register an additional business activity while I'm still under contract? My current employer doesn't have any issues with it, but I want to be sure.
2. What kind of paperwork am I looking at, what are the total startup costs for a small contracting firm, and where should I take my very first step?
3. Would it be smarter to just pick up some freelance gigs or independent contractor work until my termination date becomes official, assuming that's legally sound?

So, how does one go about setting up a small business if I'm just renting an apartment in NYC? I’m not actually a local—it doesn't even say I live here on my ID... do I need to involve my landlord in the whole process, or what? What kind of permits am I looking at for a service-based business that would be conducted off-site? Basically, do I just need a registered address?

First off, you really need to hash things out with the landlord—assuming he’s even open to the idea of you registering your small business at his address—since that could potentially trigger some rental income tax issues for him.
If he’s cool with that, then you’re basically golden.
He’ll need to provide you with the property deed, which—alongside your lease agreement—you'll have to submit when you go to register the business.
Once you have the contract, you’ll head over to a notary to get everything officially notarized—probably needing a few copies—and then you just take one of those down to the Department of Commerce along with the deed.
And honestly, I guess that’s pretty much the whole process. 🙂

silversailor said:First off, you really need to hash things out with the landlord—assuming he’s even open to the idea of you registering your small business at his address—since that could potentially trigger some rental income tax issues for him.
If he’s cool with that, then you’re basically golden.
He’ll need to provide you with the property deed, which—alongside your lease agreement—you'll have to submit when you go to register the business.
Once you have the contract, you’ll head over to a notary to get everything officially notarized—probably needing a few copies—and then you just take one of those down to the Department of Commerce along with the deed.
And honestly, I guess that’s pretty much the whole process. 🙂

Does it matter if my landlord has already registered me? I mean, we've already signed the contract and everything is set.

I suspect the landlord might need to draft a completely new lease agreement—one that explicitly states you’re using the entire apartment, or perhaps just one specific room, for business purposes.
Alternatively, the simplest and most cost-effective route would be to just put together an addendum to your current lease, adding some clauses that clarify that the space—whether it's the whole unit or just a single room—is being used for professional operations.

To be honest, I’m not entirely certain if the Department of Commerce would accept a simple addendum instead of a full contract, so it might be worth giving them a call just to double-check.

Andrew Howard14 said:So, my father runs a small business, and now he’s considering setting up an LLC on the side. I guess the question is whether he can actually run both at once, or if he’d be forced to shut down his current business just to get the LLC started?

Second question: if it turns out he can hold both, would he be stuck paying social security and other taxes for both entities separately, or does it just count as one?

Thirdly, if having both is an option, could he potentially put his current business on hiatus—basically just opening it up whenever there's actual work to do—or does that kind of thing even exist in our legal system?

Thanks.

If this isn't the right place for this, maybe an admin can move it somewhere appropriate; I couldn't find anything better than this thread without digging through ancient history...

I'm actually wondering the same thing. I know a few local restaurant owners who produce their own wine or olive oil to serve in their establishments, and they're totally lost on how to register that properly. Can they technically be both a sole proprietor and an LLC owner simultaneously? It seems unlikely to me—wouldn't it be easier to just expand the existing business's scope to include food production? I honestly don't know if my hunch is correct.
Does anyone here actually know which combinations are legally permitted?

Hi everyone, I’ve been reading through a lot of your comments lately and figured someone here might actually be able to point me in the right direction. I’m currently out of the country, so I sent an email over to the Democratic Party to get some specifics, but man, they are painfully slow. It feels like days have passed and I haven't heard a peep...
Basically, my plan is to open a seasonal business at a beach resort that would only operate for about three months of the year. What exactly am I looking at here? All I know is that it should probably be registered as a seasonal small business... How much capital are we talking about, and how long does the whole process take to finalize? It drives me absolutely crazy that people working in government offices still don't seem to know how to check or reply to their emails.

Thanks so much in advance! ☕

Brandon Phillips83 said:Hi everyone, I’ve been reading through a lot of your comments lately and figured someone here might actually be able to point me in the right direction. I’m currently out of the country, so I sent an email over to the Democratic Party to get some specifics, but man, they are painfully slow. It feels like days have passed and I haven't heard a peep...
Basically, my plan is to open a seasonal business at a beach resort that would only operate for about three months of the year. What exactly am I looking at here? All I know is that it should probably be registered as a seasonal small business... How much capital are we talking about, and how long does the whole process take to finalize? It drives me absolutely crazy that people working in government offices still don't seem to know how to check or reply to their emails.

Thanks so much in advance! ☕

In this country, don't bother emailing anyone. Just find a number and call them. Otherwise, you might be waiting forever.😁

I doubt you'll actually get a response via email.

Brandon Phillips83 said:Hi everyone, I’ve been reading through a lot of your comments lately and figured someone here might actually be able to point me in the right direction. I’m currently out of the country, so I sent an email over to the Democratic Party to get some specifics, but man, they are painfully slow. It feels like days have passed and I haven't heard a peep...
Basically, my plan is to open a seasonal business at a beach resort that would only operate for about three months of the year. What exactly am I looking at here? All I know is that it should probably be registered as a seasonal small business... How much capital are we talking about, and how long does the whole process take to finalize? It drives me absolutely crazy that people working in government offices still don't seem to know how to check or reply to their emails.

Thanks so much in advance! ☕

It's obvious you've been living abroad if you're surprised that some bureaucrat isn't getting back to your emails.😍..my opinion is shared by the other two users who responded..🙂 I can't really imagine a clerk spending half their day on the phone just to craft a detailed email answering all the questions you asked

rapidotter11 said:In this country, don't bother emailing anyone. Just find a number and call them. Otherwise, you might be waiting forever.😁

Nathan Cox25 said:I doubt you'll actually get a response via email.

..I don't mean to sound dismissive, but I'm facing similar hurdles. I'm also planning to launch a seasonal business this summer... I told myself I'd do everything possible to learn the ropes regarding setup, opening, management, etc., so now I'm studying. The first lesson is to gather info from people—whether here on the forum, from friends, or by visiting City Hall or the local Chamber of Commerce, depending on what they call those institutions. That is, if they actually feel like providing any information at all.... I have plenty of questions about setting up a seasonal vendor stall too, but I have no choice but to read up and try to make sense of it all

It seems like most institutions have absolutely no interest in actually replying to emails.
I’ll give credit where it's due, though. For instance, I've reached out to the advisory services at the US Chamber of Commerce a few times now, and they've always gotten back to me within two or three days.
I also have relatively decent experiences with the New York Stock Exchange. I usually get their responses after about five or six days.

When I was setting up my small business—dealing with all those endless forms at the local Small Business Administration office—there was this one specific questionnaire asking if the business was seasonal and what the exact dates would be. Basically, they just throw a bunch of questions at you and let you figure it out.

I’m still sitting here waiting on an email response. I sent one ten days ago, and I just followed up again today. It is honestly infuriating—I can't believe how bad it is. At this rate, we're going to end up broke like Greece because the people working in government administration are just terrible 🙂 ... anyway, thank you all so much for the replies. It looks like my only option left is to just pick up the phone and call them...
In the area where I'm planning to open my business, everyone I talk to just shuts me down. You know how people can be; every single person I asked just shook their head, saying it's too complicated, too expensive, too slow, or just not worth the hassle. So, when it comes to actual useful information, you guys are really my only reliable source

I am beyond grateful to you all 🙂