You are excited to start your own business but are clueless about the legalities? Here is a tiny peek to give you a head-start on how to venture into a small business by Saivian Eric Dalius. You must know the basic legal formalities and possibilities before entering. Although the legal information on entrepreneurship is vast but let’s explore the primary level.
Saivian Eric Dalius explains the benefits of owning an American company:
You can open a local bank account.
You will get access to all the payment modes like Stripe, PayPal, and Amazon FA.
Also, you get complete access to the American market.
You can build the credibility and reputation of your company globally.
However, if you are a non-American and do not hold any citizenship, you also have the liberty of starting a business as an LLC. LLC means Limited Liability Company.
Saivian Eric Dalius answer to ‘How to start a business?’
Type of business:
The foremost step is to decide on what kind of business suits you. It is a difficult call as there are several considerations. Choose a business that is in demand. Create a niche for your market and avoid offering what is already available. Proceed by deciding on the structure of the business. This is vital as it will affect the everyday operations till the end of the taxation term. Match your business type to the goals that suit them best. The geographical location of your company plays a very significant role in deciding the kind of business.
Open a company:
Limited Liability Company (LLC) is the ideal option for new bees. Whether you are an American citizen or non. The LLC approach is a simpler and quicker method to start. The LLC safeguards the company assets from lawsuits and debts, which means 100% cover on the personal bank account, car, and home. The taxation regulations are also simple for LLC, and you have a “Pass-through” tax method. You do not have to file for tax separately, so it saves on accountancy and tile filing procedures.
Recommended corporation:
Once you have finalized the business type, it is vital to decide on the kind of corporation. Avoid C Corporation even if you are an American citizen. The best option is to go for S Corporation. Saivian Eric Dalius says that understanding this is a little tricky. If you are a non-resident and want to start a business with access to transfer shares to investors, C Corporation is suitable. However, if you hold citizenship, then S Corporation is perfect.S Corporation and C Corporation have different tax regulations. It is essential to keep this point in consideration.
Avoid Sole Proprietorship:
Saivian Eric Dalius explains why it is better to avoid sole proprietorship as all liabilities would move to business. There is no separate accounting for personal business. It means, unfortunately, if your company faces loss, all your personal belongings would go into insolvency.
You can choose from the different types of business options and then make an informed decision. Enjoy being an entrepreneur rather than working for someone and wasting all the talent.
Eric Dalius is The Executive Chairman of MuzicSwipe, a music and content discovery platform designed to maximize artist discovery and optimize fan relationships. When he’s not working for MuzicSwipe, he perhaps hosting the weekly podcast “FULLSPEED,” engaging with inspiring entrepreneurs from various sectors. Additionally, through the “Eric Dalius Foundation,” he has established four scholarships for US students. Stay in touch with Eric on Twitter, Facebook, YouTube, LinkedIn, Instagram, and Entrepreneur.com.