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How Would You Start A Business?
Cosine Jeremiah asks: "I'm interested in starting my own business, but I'm not sure where to start concerning legal and tax issues. Sure, I suppose I could go ask a lawyer, but I want to know what to expect before I have to put down any money. And I'm not sure I can trust just any lawyer I accidently end up with to give me the whole truth, such as what all of my options are and all of the pros and cons of each. Should I create a corporation? What kind of corporations are good options? Or should I make the business an at-risk venture? And which special tax forms do I need for each? Right now I don't really know the difference. Surely there are many people out there that have gone through this and can share their experiences, and just as surely there are many more people than me wondering about this stuff?"
There are a number of books on starting a company. Most will point out things that you would not have thought of on your own. Then write out a plan, try to figure out where it could go wrong. Then talk to an accountant or laywer.
You might want to check out SCORE, its a group of retired executives who mentor people starting up new companies. My grandfather worked for them for years. Here is a link to one of their branches SCORE Delaware (It was the first one that poped up when I did a search).
Erlang Developer and podcaster
I think not.
You said it, not me...
What the fuck do you think this is, a business advice site?
No, it'a a news and discussion site, which tends to focus on issues that are important to intelligent, technically-oriented people. Hence, "News for nerds, stuff that matters." When young nerds grow up, being able to pay the bills becomes important. You'll find this out in a few years.
--LordEq
Tho' your promise count for nothing
I think it rather depends upon what area you're going to be working in. Given that you chose to ask the question here, I'd guess your venture would be something computer-oriented.
In that case, I wouldn't bother forming a corporation at all. You can always incorporate later, but for now there's probably lots of paperwork you don't want to get into. Incorporation is useful in terms of shielding shareholders from damages (in particular, if you need a loan to pursue soemthing it is useful to be incorporated so that the bank can't come after you if the business fails) but in computing where the "bar to entry" is so low there really isn't much point incorporating until you start dealing with significant money -- at which point you should keep a lawyer on retainer anyway.
Tarsnap: Online backups for the truly paranoid
...(No, make that a lousy to great resource, depending on the quality of the person in charge of the program) is the Internal Revenue Service. Call the toll-free help number or your local office and get hold of the Taxpayer Education office or whoever is responsible for the Small Business Tax Workshops in your area. Find out when and where and go.
At their best, these workshops can be a gold mine and bring in guest speakers to cover topics far beyond just taxes. At their worst, though, they can be just a short meeting where some publications get handed out and that's about it. Either way, it won't be a waste of your time.
Of course, the easiest way to find one is to go here, click on your state, and dig a link or two deeper to get the schedule for workshops in your area. Even if there's not a current schedule, there will be a contact name and phone number you can call.
A good page of general-purpose links for anyone starting a small business is here
A good place to start finding out about taxes, complete with a freebie from the Small Business Administration, is here.
Enjoy.Yes you want a lawyer. As others have said an accountant is more important to you. Find a good accountant, and they can help you find a lawyer. So how do you find a good accountant? Go to your neighborhood businesses and ask them who they use. Don't ask one or two. Talk to many of the businesses you deal with every week. Not only will you get a few strong recommendations to start with, you will also hear from these businesses some answers to your other questions, and quite a number of new questions to ask yourself. This is a good thing. Starting a dialog with local businesses is also the best, first marketting step. They will probably be your first customers after all.
Yes you want to incorporate. People sue at the drop of a hat. While your insurance will handle most legal cases, you can't take a chance of losing your personal possessions. Did you you notice insurance in the previous sentence? Have you explored that whole barrel of monkeys yet? You will get sued; over stupid things no rational human would consider. It really sucks not being able to eat your Thanksgiving dinner because you're so nervous about losing everything to some ass with a lawyer on retainer.(The jury sent him packing in a humorous and embarrassing manner. I had a good Christmas.)
Based on the tone of your question I assume your thinking of starting a relatively small business. A sub-s corp is probably what you need(in America). Your accountant will help with this.
Most importantly: the basic nature of the questions you're asking means you are not ready to start a business. Do your homework. Jumping into ownership is big magic, so don't be bad at it. You'll find that ownership saddles you with a hundred little decisions a day. A friend who recently started a lan management business just told me he understands what I meant when I said "The business of my business keeps me from running my business."
Good luck. Stick with it, its a wild ride.
There's a spider on your shoulder.
You're much more likely to want/need an accountant than a lawyer, but that comes later (i.e., after you have some income). You will need a lawyer if:
Otherwise you can definitely do the paperwork on your own. Just pick up a book or two from Nolo and you're on your way.
"Patriotism is your conviction that this country is superior to all other countries because you were born in it." -- GBS
Go see an accountant instead. They know the ins and outs probably better than a lawyer will anyway, and will most likely be able to give you a free consultation before you sign them up.
But make no mistake about it - starting a business costs money. There are various ways to get that money (don't even think of VC's right now), such as government initiatives. You local government may also have a small business bureau of some sort - go and speak to them - that's why they are there.
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Check the government section of the phone book for small business support services. There will usually be a department or institution that will give you an information package on the legal and administrative hoops involved.