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In this show:
• Bettie Newell, and attorney and a crafter, helps us understand legal business structures, including Sole Proprietorships, LLCs, Corporations, and Partnerships.
• We talk about why these structures are important, and which ones might be best for what kinds of craft businesses.
• …And we talk about what’s involved in getting your business set up as one of these structures.
Links:
• Bettie Newell blogs about crafts over at Handmade in Portland. You can also catch her on Twitter.
• If you’re in Oregon, Bettie recommends the Small Business Legal Clinic.
• Check to see if your community has a Mercy Corps office. Some of them offer small business classes.
• Another good resource is the Small Business Development Center, which exists in many states.
• Here’s how to apply for an Employer Identification (EIN) number
• Here’s a directory of state Secretary of State offices.
whoa, lots of info. I think part of the difficulty for small businesses and start-ups is that we are worrying about everything at the same time… our products, our marketing, our costs, our structure…surviving, etc. It's everything combined that makes it so intimidating and confusing. I wonder if there's another topic to address in terms of what one really has to worry about from the beginning and then what can be changed at a later date depending how the business goes. Maybe a priority list :)
I agree that this is an important question, Linda, but so far, I have found the problem with it to be that most experts on one part of the process will naturally think their part should be done first. An attorney will of course believe it's vital to do your small business filing first, because he or she has often had to counsel people who didn't do that. A tax expert will of course believe it's vital to set up your books first. A marketing expert will of course believe you should work on establishing your online platform.
Not to mention, there are legal liabilities involved in anyone saying formally “Do this first, then that, then that.” So ultimately, it's up to the individual to decide what order makes sense for all these tasks. I know it's a lot of information, but you know best what your strengths and weaknesses are, and what you'll grasp quickly and what you'll need time to absorb.
But – I will say, in this age where Etsy and other engines make it so easy to fire up a little business, these more formal ideas seem to be getting a bit lost. Which is why I wanted to cover some of them in the show.
Great points! I think that's why the overwhelm settles in for most folks. It's definitely easier and more fun anyway – to just dive in with a shop front like Etsy! I certainly didn't go about things in an organized fashion…the only thing I've learned though that is essential is to document everything! Keep a little journal of somehow organize and keep everything related to your business. It's amazing how we can forget about things, overlook – can't find that one sheet of paper, etc and how fast time flies!