5 Entrepreneur Essentials To Protect Your Business

When starting a business don’t forget to incorporate these five entrepreneur essentials for a legit business that will last longer than the latest social media trend. It’s easy to get caught up in all the bells and whistles of creating a shiny new website, planning your marketing ideas, and creating your product or services, but these essential elements will help you protect your business.

LLC
Establishing an LLC (Limited Liability Company) is one of the most important things you should do when setting up your business. An LLC protects your personal assets from business debt and any potential legal issues. Even if your business faces financial issues or lawsuits, having an LLC will protect your personal funds, home, and other assets. Also, it is more professional and provides a sense of legitimacy. You can set up your LLC by filing with the state where you operate your business. In Michigan, LARA is where you can find all the necessary information.

EIN
This Employer Identification Number (EIN) is issued by the IRS and acts like a social security number for your business. An EIN is necessary for opening a business bank account, applying for business licenses, and filing business tax returns. It is also necessary if you want to hire employees or create a partnered business, an LLC, or a corporation. Using an EIN instead of your personal Social Security Number will also help protect you from identity theft.

Business Bank Account
With your LLC and EIN in hand, it is time to head to the bank and open a designated bank account for your business. This will keep your finances easily separated and make tax time more convenient. Check your local bank institutions for an account that doesn’t have an account minimum.

CPA
A CPA (Certified Public Accountant) will help ensure your business’s compliance with tax laws and prevent you from paying penalties or fines. They can also help structure your business in the most tax-efficient way to maximize profits. It’s worth it to pay a CPA for professional advisement instead of trying to figure it out yourself. You have enough things to figure out as an entrepreneur. This would be the first task I would outsource.

Contracts
Contracts are one of the entrepreneur essentials I feel so strongly about that I refuse to start services with a client without one in place. Do not make the mistake of starting services with a client without a contract. If all else fails, a good contract can single-handedly save your business. They provide legal protection by outlining the work terms, deadlines, and payment expectations. A proper contract is built to protect both parties and hold everyone accountable. Contracts also provide defined options should you need to seek legal counsel for unpaid services, etc. Contracts enhance trust and professionalism with clients.

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*This post is not legal advice. Please consult a trusted law professional for advice with any questions.