I want to start my own business. Where do I begin?
First, check with your county and/or city and establish whether you need an occupational license to operate your particular business. Next, check with your State and determine if you must acquire any special license(s) in order to engage in the business you are contemplating. Finally, determine why type of business structure will best serve you in operating your business, i.e. sole proprietorship, corporation, partnership, etc.

I need workers. Should I hire employees or independent contractors?
It depends. If you hire employees, you will have accounting issues and taxation issues to address; for example, will have to make social security contributions, unemployment compensation contributions, and will have to file quarterly wage reports. On the other hand, with an independent contractor, the individual worker is responsible for all of his/her taxes and you will simply be responsible for issuance of a Form 1099 for each taxable year. The IRS uses a test, and theoretically, under the law, you have more control over the activities of an employee than you do an independent contractor. Also, employers may not be responsible for carrying worker’s compensation coverage for independent contractors.

What are the pros and cons of incorporating?
Incorporation can protect your personal assets from those that may have claims against the corporation, e.g. creditors. On the other hand, when you operate as a sole proprietor (you own the business but it is not incorporated), you are subject to personal liability for the actions of the business. This protection is probably one of the most popular reasons for incorporating. However, incorporation requires certain ongoing corporate formalities, such as filing annual reports, maintaining corporate books, and documenting the action of the corporation in order to maintain your liability protection.

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