Are you one of the many Americans looking to start a business?
If you are or if you ever plan to, there are a few things you should consider before venturing out into entrepreneurship.
Many spend thousands of dollars on starting their business, securing a website, printing promotional materials, finding the perfect location, and stocking up their inventory, but future entrepreneurs often leave out three important things — they don’t investigate, incorporate, or insure themselves against loss.
Monique Pressley, principal of The Pressley Firm PLLC, joined Roland Martin on NewsOne Now to explain how to set your business up properly.
Pressley offered the three “I’s” as a guideline to starting a business, stating that before you launch your personal endeavor, you should investigate the “local laws for licenses and permits that are required for your area.”
She continued with the second “I,” saying you should investigate how to incorporate your business and determine if you want to be a sole proprietorship, a limited liability company, or a corporation.
Finally, you will want to insure your business to protect against loss.
Pressley recommended that most business owners establish their businesses as a limited liability company (LLC) because it allows the owner the “benefits of a corporation and the perks of partnerships.”
“It’s the best case scenario for you in terms of your taxes, it’s the best case scenario in terms of the way that you operate your business, and it doesn’t have all of the requirements that the full-blown corporation has.”
She also stated that “if your business is expanding, you’re adding employees, thinking of having shareholders to add capital to your business, then you can move forward to a full-blown corporation.”
Check out Monique Pressley’s tips for starting your business and how to use the three “I’s” to help you get properly established in the video clip above.
Subscribe to the “NewsOne Now” Audio Podcast on iTunes.