Need Some Direction And Simple Explanation On Business Process

Nellie

I want to start my own buisness. I am so close to having everything I need (tools, vehicles, license) but I need to better understand the process of the whole paper work shuffle in simple terms. I need someone to help me from the start on good practice from when I recieve a phone call from someone wanting my service to paying my taxes. Very broad I know. I understand the estimate part and figureing in labor/material costs and profit but how should I set up my invoices and have my buisness account set up? How should I handle invoices and where do I put the money after completing a job (ie. taxes, profit, business expense) so that the IRS wont bother me? I am going to be incorporating a small business and I will be doing most of the work with one employee in Michigan.

MinConst

Hi Nellie,
You are asking allot of a forum. If you have a SBA Small Business Administration in your area you might want to get involved with them. Chamber of Commerce can also at times steer you to help in this area. You say your going to incorporate. I would recommend a good corporate lawyer for that and he should also be able to help with some other question. A good accountant or CPA will also help. If you don't want to take all this on you will need to allot of research on your own.
I can tell you how I do my paper work but it may not fit your business plan. Programs like Quick Books make it much easier. I would recommend that.
Do you know anything about book keeping?
I run m business as a DBA. Have a business checking, business savings, business saving for deposits, and one more for Visa MC transactions. I feel this helps keep things separated. My project deposits go into the deposits savings until I start the job, then it gets transfered into my checking as I need to buy materials for that job. When I get paid for a completed job, I put that into the normal savings account and draw out of that into my checking as needed.
You will need to think this all out and try to plan ahead as much as possible but bank accounts can be added as needed. Just be sure they don't cost you anything at the bank.
Good luck and if you have any specific questions ask away there is allot of help here if you ask specifics.

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Paul
Minichillo's Construction
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Scottsdale

Nellie

I am in the construction industry. In my previous profession I was an accountant and I incorporated individuals daily. The one thing I tell every new corporation is this. When you first start out you are very vulnerable. One mistake cabn cost you your business, your savings, your home and your life. Here si how you protect yourself. The first step is becoming incorporated and creating an entity. Number one rule...Let the entity run itself and do not get personally involved or you become vulnerable. In other words a corporation exists as an entity and can only be attacked as just that, this does not include you personally. A corporation has a veil around it protecting it and you. The number one reason I was in court on corporations is because the veil was pierced by the owner and if the owner canb pierce the veil so can someone filing suit. Instance...A corporation was being sued. It was a small corporation owned by a fairly rich man. The corporation protected the man from being sued personally until the prosecuting attorney found out that the man a company credir card to buy gas and meals on a private vacation. It was his company and his card but the owner pierced the protection and once that happens you may as well not be incorporated at all. He lost his shirt. So get incorporated and let the business exist as itself. You can loan your company money from your personall accounts and take draws as payment for yourself. Seek a qualified attorney and pay the extra money to get started securely. Good luck

Mike Finley

Wow, don't want to be a downer, but I think you put the cart before the horse a bit. You might want to get a beginner book on business that touches on how accounting and book keeping works. Then progress to another book about running a biz.

bassmaster

I agree with Mike, you might be getting ahead of yourself. There are plenty of good books regarding starting a business & operating a business.

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