Entrepreneurs seeking capital for a new business or to expand an existing business realize that this is one of the most difficult tasks. Not only does it consume a lot of time but it can be very stressful and frustrating as well.
As in any other undertaking, however, these obstacles can be hurdled with a little planning and preparation.

Getting small business loans is similar to any other business partnership. This means that your partners want to be assured that you have researched your options carefully and you know exactly what you need before approaching them for a loan.

There are several government loans available for small businesses. Each loan program has specific application and eligibility requirements but most lenders often ask for the same information from you. Before you apply for one, put together some basic documentation that you can use for any loan package.

Government agencies dont normally give loans directly to business owners. It merely provides a guaranty to banks and lenders for money lent to small businesses. This guaranty is a promise to pay a portion of the loan back to the bank in case a business owner fails to do so. A guaranty lowers the lender’s risk and allows that person to make loans to business owners who dont qualify for conventional loans.

So where do you go? The first step to get a loan is to visit your local commercial bank or lending institution. Get all the forms you need and fill them up correctly. To qualify for a loan, you should have a good credit history and a complete business plan. Borrowers also have to contribute anywhere between 25 percent and 33 percent of the overall costs.

There are a number of good reasons why you should become an entrepreneur but money isn’t one of them. Experts say that entrepreneurship is not a sure way to fame and riches. Starting a business can be hard, stressful and often ends in failure. But you can succeed with the help of these free online resource for small businesses. They will tell you everything you need to know to get your business off the ground.

Start with Score (http://www.score.org/index.html) that offers free and confidential advice to small businesses, face-to-face counseling, online counseling and a whole lot more. Score’s goal is to help you succeed with its team of volunteers – mainly successful entrepreneurs who are willing to share their knowledge with you. This non-profit group currently has over 12,000 volunteers across the country so take advantage of their expertise today.

To access Score’s services. simply visit the site and input keywords to locate a counselor that suits your business needs. The good part is that there’s no limit to the number of you can consult Score. Thus, you get all the help you need to start a great business.

My Own Business Inc. (http://www.myownbusiness.org/) is another non-profit organization that helps people succeed in business. It has a 16-session Internet course presided by successful business owners who tell you of common, avoidable mistakes. The site has over 15 million visitors have made use of this vital information. The World Bank said that the high-quality interactive content from My Own Business Inc. has been instrumental to the success of the SME Toolkit across five continents.”

The course covers vital topics for anyone starting or operating a business. This will benefit the entrepreneur who wants to start his or her own business and the person who wishes to expand an established business.

Deciding to start your own small business isn’t easy. You need patience to deal with customers and clients who call you at any hour of the day, You have to come up with great products that people will love and you have to maintain a competent staff to help you all the way. Running a business certainly isn’t for everyone. So before you begin anything, think twice whether you have the talent and discipline to be in business. There are several things to consider. This short article will tell you the key issues to help you succeed.

Make yourself different. You probably got into your own business since you discovered that you could do something better than anyone else. Capitalize on your abilities and make a name for yourself. Maybe you can build a Web site faster than other people or you can type so fast that data entry becomes an easy task for you. This becomes your unique selling point (USP) that makes you different from other individuals and businesses with the same product or service.

Develop your own brand. Personal branding is essential for any entrepreneur whether you are operating alone or you with a large staff. Branding is the image you project to the world about your business. Donald Trump is one of the well-known brands who is known worldwide because he successfully marketed himself. Many other industry leaders are also recognized and have become a part of their products. Develop your personal brand and sell yourself to make your business big.

Have business cards printed and carry them wherever you go. These are effective client magnets. At the very least, they give you something on which to write the contact details of potential clients. If you bump into anyone who might need your goods or services, let that person know what you do and give him a card. Some people won’t take you seriously unless you have a business card.

You’re starting a new business but one question is bugging you: do you need an accountant? Is it necessary to hire one? It certainly sounds important but what if you have nothing to account for? How do you know if and when you need one? .

There are no hard and fast rules regarding this problem. It all depends on how much money you have and the number of deductions you have to make. One thing to remember is that deductions are more important than your income. You read it right. How come?

Well, you don’t have to be a genius to figure out how much money you’re making as long as you can count. You don’t need a degree in physics to add up your Clickbank or PayPal receipts. But deductions are a different matter. Do you have any idea what to deduct? If you don’t, that can be bad for your business and getting an accountant makes perfect sense.

As you know. accountants have a wide range of services. A good accountant can advise you what records to keep for your business, how much you should set aside for income tax and national insurance, and whether you have to register for VAT among others.

An accountant can also help you in raising money, making a business plan, telling you what accounting software to use, and in payroll preparation if you’re hiring people. As your business grows, that person can advise you on personal financial planning, tax planning and other business matters.

As you gain more experience, you may find that your accountant and attorney may overlap in the services the provide. But don’t worry. In most cases, the two work together to help you succeed in your business.

For many entrepreneurs deciding whether to hire a lawyer is similar to a visit to a doctor. If you have a big medical problem,. chances are you won’t hesitate to call a physician or run to the nearest hospital emergency room. But if you simply have a bad cold, you’ll normally wait for a couple of days or until things get bad before you go to a doctor.

In business, however, it’s difficult to take chances. You should get a lawyer when dealing with a serious legal problem. Obviously, this holds true if you’re being investigated for securities fraud by the Securities and Exchange Commission or a client has been seriously injured by one of your products.

Starting a business without any legal counsel can be a huge mistake. If you don’t have a lawyer representing your interests, you should hire a business lawyer experienced on corporate matters and start-up ventures. One good place to start your search is the Internet. Your search will give you plenty of choices to make a good decision.

There are two kinds of business lawyers: those that handle lawsuits or business litigators and those that handle corporate and contract matters or transactional lawyers. Some lawyers can do both but most concentrate in one area or another. If you’re starting a new business, a lawyer who handles business transactions is a good choice.

Anticipate your future needs as your business grows. For instance, retain a lawyer or a law firm that specializes in areas that affect your anticipated business needs. It may be wise to get a “full service” firm that does both transactions and litigation. It’s also good to have access to lawyers experienced in other legal areas affecting your business like labor or employment law, tax law, real estate law, banking and finance or intellectual property.

No mater how big or small your business is, you need to know your federal tax responsibilities. This is essential since there are a lot of legal and tax issues that often arise with any business. To avoid being caught with your pants down, connect with a tax professional and an attorney before you start your business. They can take care of certain legal and tax issues that come up.

The Internal Revenue Service tells taxpayers to follow specific guidelines to determine whether an activity is a business or a hobby, that is, a non-profit activity. To know your filing obligations, decide whether your activity qualifies as a business and what limitations apply if it’s not a business. Incorrect deduction of hobby expenses take up a huge chunk of the overstated adjustments, deductions, exemptions and credits that amount to $30 billion yearly.

As a rule, taxpayers may deduct ordinary and necessary expenses for a trade or business. The former is a common expense that’s accepted in the taxpayer’s trade or business. A necessary expense, on the other hand, is one that’s appropriate for the business.

Next, decide which business structure is suitable for your business. There are several to choose from and each has its own advantages and disadvantages. These are sole-proprietorship, partnership, limited partnership, corporation, S-corporation, or limited liability company. To know what’s best, take into account liability issues associated with your business and choose one that will give you the best tax structure for your particular line of work.

Depending on the kind of business you plan to pursue, you may require a number of licenses or permits. At the least, you need a business license and tax registration. Research on licensing requirements to get a clear picture.

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There are several legal issues to take into account when starting a business. Everything from your business name to its structure to its operation is affected. That’s why you need the help of a good lawyer. Here are some common legal concerns you have to address:

Business Name
Ensure that the business name you intend to use is original and isn’t used by another entity. Check this by conducting a name search with the correct state agency which is often the office of the secretary of state. If your chosen name is available, you can reserve it with the secretary of state’s office for about 120 days. This will give you enough time to prepare your articles of incorporation, articles of organization, or a partnership agreement.

Trademarks
You also have to register your trademark. Reserving a domain name won’t guarantee legal rights. Federal trademarks normally take precedence over domain registrations so register the trademark federally. Choose a distinctive name so it won’t be confused with others.

Co-Founders
Make a note of your deals with co-founders. This is important to help you settle any disputes that arise later.

Employees
Take into account the legal issues of hiring employees. The largest area of potential liability for an entrepreneur happens to be employment law. Don’t neglect the rights of your employees.

Bank Accounts
Your business and personal account are two different things so keep them separate. You require a business checking account to pay for goods at wholesale prices while your sales tax certificate shows that you’re entitled to wholesale prices from suppliers. Take note if you borrow personal money to pay for your business. This will tell you at the end of the year whether you made a profit.

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The major thing that distinguishes ordinary people from successful entrepreneurs is a strong belief in one’s self. Indeed, you can become whatever you like if you believe in yourself and work towards that goal. The entrepreneurs listed below are known for inventing new things and starting services that touch our lives.

Steve Wozniak of Apple Computers

Image by Brymo via Flickr

Steve was hooked on science and technology in the fourth grade after reading a book about a young engineer who owned his own company and could design anything. This inspired Steve to create the first personal computer in 1977.

He and his partner Steve Jobs soon started a company to build and distribute their invention. Their first office was in a garage. To get funds, Jobs sold his Volkswagen van and Wozniak sold his programmable calculator to raise $1,300. Jobs managed to sell 50 Apple I computers at $666 each. Six years later, Apple was listed in the Fortune 500.

Bill Gates of Microsoft

Bill Gates via last.fm

Bill started programming computers at 13. He eventually became the chief software architect of Microsoft Corporation, the world leader in software, services and solutions. Since then, the company had revenues of $36.84 billion in 2004 alone and employs over 55,000 people in 85 countries.

Mary Kay Ash of Mary Kay Inc.

Image by kenjonbro via Flickr

Mary used her $5,000 life savings to open her first store in Dallas in 1963. She began with only nine independent beauty consultants. With her strong Christian faith, she encouraged women and gave them new opportunities that led to their personal and financial success. The company was later recognized by Fortune magazine as one of “The 100 best companies to work for in America.”

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Finding the right legal structure is important for any business. This will save you thousands of dollars in taxes yearly. There is also a benefit by having protection from lawsuits, the ability to expand your business, low operating expenses and minimal paperwork.

Should you consider a limited liability company or LLC over an S corporation or C corporation? If you do, understand that there are no tax advantages (or disadvantages) to forming an LLC. Setting up an LLC won’t affect the taxes you pay. Single-owner LLCs are taxed just like sole proprietorships while multiple-owner LLCs are taxed similar to partnerships.

Still, forming an LLC could make you a candidate for additional state taxes. This holds true in certain states like California where LLCs are subject to franchise taxes aside from the usual income taxes.

The C corporation is the standard corporation while the S corporation differs only in that it has a special tax status with the Internal Revenue Service (IRS). The latter is named after Subchapter S of the Internal Revenue Code. In to get ant S corporation status, Form 2553 must be filed with the IRS in addition to S corporation guidelines.

Unlike other business structures, C corporations are taxable entities meaning that the corporation itself is taxed on its income (compared to other entities that just pass the income to the owner). If you don’t plan to distribute all profits from your business, you could benefit from forming a C corporation and using “income splitting.” This is where the business’s income is divided so that one part is taxable to the corporation and the other is taxable to the corporation’s owner.

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What is the difference between a limited liability company (LLC) and a sole proprietorship? As its name implies, an LLC gives limited liability to its owners. A sole proprietorship, on the other hand, is a type of business that legally has no separate existence from its owner.

When choosing a legal structure for your small business, determine the costs and benefits, advantages and disadvantages of the two different types of companies. This will determine your obligations and responsibilities and how you pay your taxes in the event of a liability. Many business owners start as sole proprietors and later take the route to become Limited Liability Corporation for a variety of reasons.

An important factor in making this decision is liability. How much are you willing to be liable for? What is your role in the business? Answering these questions will guide you in your decision of how to structure your business.

A sole proprietorship can make you personally liable for all debts made by your company. If the company goes bankrupt or has a lot of debts, this will be reflected in your personal credit report and records. In contrast, an LLC is considered a separate legal entity and you won’t be required to pay the debt with your personal funds.

In case you become incapacitated or die, the business that you run as a sole proprietorship will stop existing and your heirs and family may find it difficult to continue the business. With an LLC, this remains a separate entity and will continue to operate.

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