This week was a lot more challenging for me. I can make changes on websites and I can be creative, but figuring out legal systems, taxes, and licenses was difficult. I learned about different types of business on a surface level and I learned that there is an endless amount of licenses and permits to apply for and tax numbers to get and apply. Its a mess! How do business owners figure it all out and assure that they have all the proper paperwork to run their business without incurring a fine? It seems like a ton of work! Thankfully online business is a bit easier to deal with, less to account for and require permits for and such.
The main material I learned this week as what an LLC and Sole Proprietorship is, and some basic ways to look up the requirements for a beginning business. LLC’s and Sole Proprietorship are how a business is structured. A SP is an individual who is self employed and the owner of a small business and one who takes on all the risk and responsibility of the business on their self. It is a simple way to run a business. You are the boss, you call the shots, you do all the work, you are in contact with customers, you pay taxes… and you also stand in for the business when something goes wrong. You ARE your business and if something goes wrong, if there are debts to pay or someone sues you, there is no buffer because you are the business entity. Bu there is very little paperwork to fill out and its very simple to get started and is a prime choice for those who have a low risk product and are operating on a small scale. Not much can go wrong there and its not too overwhelming. An LLC is a business structure that is a mix of a partnership and a corporation. It is a more flexible business model and is for a bigger operation and most likely more than one owner. I have chosen to go with a SP for my small online business because I don’t really need a partnership and I am very small beginning entity. I have a low risk product of drawer handles and cabinet knobs. I think this will be the best way to go!
I have more research to do on obtaining the proper requirements for this business but there aren’t too many. Ready to go!