• HOME
  • LAUNCH
  • BUSINESS
  • LEADERSHIP
  • MONEY
  • SUCCESS
  • NEWS
Saturday, 27 February 2021
ExpertHub
  • HOME
  • LAUNCH
  • BUSINESS
  • LEADERSHIP
  • MONEY
  • SUCCESS
  • NEWS
    • All
    • Company Posts
    • ExpertHub Today
    ThinkSales State Of B2b Sales In South Africa 2021 Survey

    The 7 Strategies of SA’s Strongest B2B Sales Performers for 2021

    ThinkSales State Of B2b Sales In South Africa 2021 Survey

    3 Sales Strategies SMEs Can Borrow from SA’s Strongest Performers

    ThinkSales State Of B2b Sales In South Africa 2021 Survey

    SA’s Strongest Salesforces Focus on Value, Not Discounting

    ThinkSales State Of B2b Sales In South Africa 2021 Survey

    ThinkSales State Of B2b Sales In South Africa 2021 Survey

    Devastating Financial Gender Gap Has Grown: Women Are Better Investors, But Retire With 30-40% Less Than Men

    Why SMME’s Need To Think Small

    Devastating Financial Gender Gap Has Grown: Women Are Better Investors, But Retire With 30-40% Less Than Men

    Five Money Management Principles To Start 2021 On The Right Financial Footing

    Trending Tags

    No Result
    View All Result
    • HOME
    • LAUNCH
    • BUSINESS
    • LEADERSHIP
    • MONEY
    • SUCCESS
    • NEWS
      • All
      • Company Posts
      • ExpertHub Today
      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      The 7 Strategies of SA’s Strongest B2B Sales Performers for 2021

      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      3 Sales Strategies SMEs Can Borrow from SA’s Strongest Performers

      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      SA’s Strongest Salesforces Focus on Value, Not Discounting

      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      ThinkSales State Of B2b Sales In South Africa 2021 Survey

      Devastating Financial Gender Gap Has Grown: Women Are Better Investors, But Retire With 30-40% Less Than Men

      Why SMME’s Need To Think Small

      Devastating Financial Gender Gap Has Grown: Women Are Better Investors, But Retire With 30-40% Less Than Men

      Five Money Management Principles To Start 2021 On The Right Financial Footing

      Trending Tags

      No Result
      View All Result
      ExpertHub
      No Result
      View All Result
      Home LAUNCH Starting a Business How to Guides

      How to Set Up Your Start-up Business Correctly

      Tax, registering a business and compliance aren’t sexy, but they are critical building blocks to landing big clients and growing your business.

      Nadine von Moltke-Todd by Nadine von Moltke-Todd
      Feb 1, 2021
      in How to Guides
      0
      Devastating Financial Gender Gap Has Grown: Women Are Better Investors, But Retire With 30-40% Less Than Men
      Share on FacebookShare on TwitterShare on LinkedIn

      RelatedTopics

      Fast Track Your Path To Profitability With A Strong Financial Plan

      Starting A Business In New York Checklist: Your Comprehensive Start-up Guide

      The 10 Commandments of Social Entrepreneurship


      Starting a business covers every range of emotion and experience imaginable. It can be exhilarating and rewarding, but also terrifying, challenging and incredibly lonely.

      The nuts and bolts of building a business are the same. There’s the sexy side of developing an idea into a solution, branding and marketing your business and closing sales. Score a round of seed or series A funding, and your business looks even more glamorous.

      But there’s another side as well, one that is equally important to whether or not you’re hitting your sales targets each month. Your business is a legal entity that must pay taxes and comply to local and state regulations. If you want to grow your start-up into a larger organization, you need to be compliant.

      1. Make your company a legal entity

      Around the world, businesses have their own legal entities. There are also a number of different types of corporations that you can register.

      For example, in the United States, there are 4 different types of corporations.

      1. A C Corporation: Refers to any company that is taxed separately from its owners under US federal income tax law.
      2. S Corporation: These types of corporations elect their shareholders to carry corporate income, losses, deductions and credit or federal tax purposes.
      3. LLC: A Limited Liability Company (LLC) blends elements of partnerships and corporations and is more flexible than a C Corporation and an S Corporation.
      4. Non-profit: Non-profit organizations (NPOs) do not distribute profits or dividends. Any surplus revenues are reinvested into achieving the NPO’s stipulated goals.

      There is also a Partnership, which is not a corporation, but a more informal business in which two or more individuals share the profits and liabilities of their venture.

      It is important to incorporate your business because without it, you cannot apply for the business and operating licenses you will need, register for tax, register to pay taxes for your employees, open a business bank account, protect your name with a trademark or meet any compliance certifications required in your industry.

      2. Open a business bank account

      There are a number of reasons to open a business banking account, beginning with the simple truth that it’s just good sense to keep your personal finances separate from your business finances.

      Here are 6 more reasons:

      1. Small business accountancy software integrates into your bank account and helps you keep your records organized, from how much cash you have in the bank to how many invoices are outstanding.
      2. To ensure you pay enough tax come tax season, it’s important to keep your records in order, and not to confuse personal payments with business financials.
      3. You can accept credit cards
      4. More than one person can have signing power on a business bank account
      5. You look more professional and you can build up a relationship with your bank, which is crucial if you ever want to access bank finance.
      6. You can shield your personal assets in case anything goes wrong in the business.

      3. Set up a payment solution

      In today’s Internet-based world there are many different options available to businesses when it comes to accepting payments, from cash to mobile point-of-sale solutions to a range of digital payment solutions.

      Key questions to consider:

      1. Will your customers be transacting online in in a physical retail space?
      2. What solutions do your customers currently use and are therefore comfortable with?
      3. Have you compared different options?

      Here are 3 digital payment solutions you can consider – but there are many, many more, so do your research.

      1. Square is a credit card processing solution that has removed the burden of carrying additional fees from small businesses. You can accept credit cards anywhere and only pay per transaction – no set-up or monthly fees.

      To find out more, visit squareup.com/us/en

      1. More than 7 million businesses around the world offer PayPal to their customers. You can accept payments from anywhere in the world, and users can set up accounts with an email address.

      To find out more, visit www.paypal.com/za/webapps/mpp/merchant

      1. Zohot Checkout. Zoho Checkout is more than simply a way to accept payments. Through Zoho Checkout you can build a custom, branded page within minutes and start accepting payments immediately.

      To find out more, visit https://www.zoho.com/checkout/?utm_campaign=zohocheckout&utm_medium=cpc&utm_source=capterra

      4. Register for tax

      Every country and state has different tax laws, so it’s important that you find out exactly what’s required of you in terms of your geographical location, as well as where your customers are, if you are trading beyond your state or country borders.

      In the US, you can find out more about your state and federal taxes through the Internal Revenue Service’s (IRS) website and through USA Gov’s tax site.

      Not paying the correct taxes can result in a business being fined or even criminally charged, so it’s important to stay up-to-date with both tax laws and your tax payments.

      Because paying tax is a legal requirement for all businesses, the more you know about your local regulations and can plan for them, the better off your business will be. Speak to a professional and with the right planning you will be able to lower the amount of taxable income your business pays, reduce your tax rate and have greater control over when you will pay your taxes.

      5. Determine which regulations are relevant

      Most industries have self-regulatory bodies that require certain certificates of compliance. If you do not have certain certificates that you need to adhere to, there is a strong possibility that your customers do. From safety regulations to EPA (Environmental Protection Agency) mandates, there will be compliance issues that you need to consider.

      Key questions to consider:

      1. Have you researched the regulatory compliance certifications in your industry?
      2. How costly are they?
      3. What are the results of non-compliance?
      4. Have you spoken to your customers to determine which certifications they require you to have?
      5. Have you factored these into your business planning?

      6. Join a business association

      The good news is that while all of the legal, tax and compliance issues associated with businesses can be daunting, there are many different business associations designed to help you navigate your way to success.

      There are entrepreneur-led organizations and government and state-sponsored organizations.

      For example, Entrepreneur’s Organization (EO) is an international network that is made of members and forums that support business growth.

      Similarly, the Small Business Administration is a government-run organization that supports small businesses in all things business.

      There will usually be a local chamber of commerce that can assist you as well.

      The point is that you don’t need to go it alone – join business Facebook and LinkedIn groups in your area and get Googling to find out what’s active near you.

      Mistakes to Avoid

      When it comes to launching a business, there are a few key mistakes business owners make that you should be weary of.

      Don’t wait too long to formalize your business. Many businesses wait to incorporate or get key certifications, and then miss out on a key contract because everything they needed wasn’t in place. The earlier you take these steps, the more you’ll save down the line, and the more you’ll be prepared for growth.

      Don’t ditch your taxes. While taxes can seem a burden to a small business, non-compliance can be far, far more costly in the long run. Rather focus on all the state and government support available to small businesses, as well as the great amenities available to you thanks to your taxes.

      Don’t keep you head in the dark. For many entrepreneurs, compliance and tax issues are too much. They are not why you got into business. If this sounds like you, the great news is that there are a lot of professionals out there whose business is assisting businesses like yours – don’t ignore the issue, but invest in the right knowledge and assistance instead.

      ShareTweetShare
      Nadine von Moltke-Todd

      Nadine von Moltke-Todd

      Nadine von Moltke-Todd is the Editor-in-Chief of Entrepreneur Media South Africa. She has interviewed over 400 entrepreneurs, senior executives, investors and subject matter experts over the course of a decade. She was the managing editor of the award-winning Entrepreneur magazine from June 2010 until January 2019, its final print issue. Nadine’s expertise lies in curating insightful and unique business content and distilling it into actionable insights that business readers can implement in their own organisations.

      Quick Links

      • Business Plan Advice
      • Business Plan Format Guide
      • Business Plan Format
      • Sample Business Plans

      NEWSLETTER SIGN-UP

      Sign-up for Weekly ExpertHub Updates

      * indicates required





      EXPERT INSIGHTS

      https://vimeo.com/311685299?loop=0

      Browse by Category

      • Academic & Alumni Networks
      • Accounting & Payroll
      • Accounting & Payroll
      • Advertising
      • Advice
      • Angel Investors
      • Are You Suited to Entrepreneurship
      • Are You Suited to Franchising
      • Arts & Crafts
      • Attracting Investors
      • Auto & Transportation
      • Automotive, Travel & Transportation
      • Bank Finance
      • Banks
      • BEE
      • Bootstrap Financing
      • Branding
      • Budgeting
      • BUSINESS
      • Business Advice for Women Entrepreneurs
      • Business Ideas
      • Business Ideas Directory
      • Business Landscape
      • Business Leadership
      • Business Leadership Q&As
      • Business Model
      • Business Plan Advice
      • Business Plan Format
      • Business Plan Research & Preparation
      • Business Plan Template
      • Business Plans Q&As
      • Business Services
      • Business Survival
      • Case Studies
      • Cash Flow
      • Celebrity Businesses
      • Change Management
      • Checklists
      • Children
      • Children & Education
      • Company Posts
      • Compete to Win
      • Compliance
      • Computers & Internet
      • Construction & Engineering
      • Consulting
      • Cool Offices
      • Direct & Email Marketing
      • Doing Business in Africa
      • Doing Business in SA
      • Doing Business in SA Q&As
      • Doing Good
      • Eastern Cape
      • Education & Instruction
      • Entertainment & Events
      • Entrepreneur Competitions/Awards
      • Entrepreneur Daily
      • Entrepreneur Profiles
      • Expansion Finance
      • ExpertHub Today
      • Financial Management
      • Financial Management Q&As
      • Financial Reporting
      • Food and Farming
      • Franchise & Biz Ops Spotlight
      • Franchise Finance
      • Franchise Listings
      • Franchise News
      • Franchise Your Business
      • Franchisee Advice
      • Franchising
      • Franchisors
      • Free Mentorship Services
      • Free State
      • Funding
      • Funding Q&As
      • Funky Marketing
      • Gauteng
      • General Business Networks
      • Get Organised
      • Government Funding
      • Government Funding
      • Government Grants
      • Growing a Business
      • Growing a Business Q&As
      • Health and Beauty
      • Hip Retail Spaces
      • Hiring & Managing Staff Q&As
      • Hiring Employees
      • Home Products & Services
      • Hotels & Hospitality
      • How to Guides
      • How to Guides
      • How to Guides
      • How to Guides
      • How to Guides
      • How to Guides
      • How to Guides
      • How to Guides
      • How to Guides
      • How to Guides
      • How to Guides
      • Import Export
      • Import Export Q&As
      • Import/Export
      • Increase Profitability
      • Increasing Productivity
      • Innovation
      • Intellectual Property
      • International
      • Investing
      • KwaZulu Natal
      • Labour Complexity
      • Labour Law
      • LAUNCH
      • LEADERSHIP
      • Leading
      • Legal Assistance
      • Legal Contracts
      • Lessons Learnt
      • Limpopo
      • Long Term Courses
      • Managing Staff
      • Manufacturing
      • Manufacturing
      • Marketing
      • Marketing Q&As
      • Marketing Tactics
      • Medical & Health Care
      • MONEY
      • Mpumalanga
      • National
      • Networking
      • Non-Profit Organisations
      • Northern Cape
      • Ongoing Learning
      • Ongoing Learning
      • Online Business Plans
      • Online Businesses
      • Online Marketing
      • Online Mentorship Services
      • Online Networks
      • Partnerships
      • Performance & Growth
      • Performance Monitoring
      • Personal Finance
      • Personal Improvement
      • Personal Improvement
      • Personal Improvement Q&As
      • Personal Services
      • Personal Wealth Q&As
      • Pets & Animal Services
      • Podcasts
      • PR & Publicity
      • Presenting
      • Private Equity
      • Professional Mentorship Services
      • Professional Services
      • Property Investment
      • Publishing and Media
      • Ready to Launch
      • Real Estate
      • Real Estate
      • Recreation
      • Referrals
      • Researching a Franchise
      • Restaurants & Bars
      • Retail
      • Retail Business
      • Risk Management
      • Sales
      • Sales Confidence
      • Sales Prospecting
      • Sales Q&As
      • Sales Strategy & Management
      • Sample Business Plans
      • Sample Business Plans
      • Santam for Business
      • Sector Focus
      • Self Development
      • Services Businesses
      • Setting & Achieving Goals
      • Setting Up Systems
      • Short Term Courses
      • Small Business
      • SME Incubators
      • Snapshots
      • Special Interest Business Networks
      • Sports, Outdoors & Fitness
      • Staff
      • Start Up Tools & Infrastructure
      • Start-up Advice
      • Start-up Guide
      • Start-up Industry Specific Q&As
      • Starting a Business
      • Starting a Business Q&As
      • Starting an Export Business
      • Starting an Import Business
      • Strategy
      • SUCCESS
      • Success Stories
      • Support for Women Entrepreneurs
      • Tax
      • Techniques
      • Technology
      • Technology
      • Tools
      • Types of Businesses to Start
      • Uncategorized
      • Upstarts
      • Venture Capital
      • Western Cape
      • Women Entrepreneur Competitions
      • Women Entrepreneur Successes
      • Women Entrepreneurs
      • Women's Business Networks
      • Women's Funds
      • Work Life Balance
      • Worksheets
      • About Us
      • Write for Us
      • Privacy Policy
      • Terms & Conditions
      • Sitemap
      • Contact Us

      Copyright © 2021 ExpertHub.info

      No Result
      View All Result
      • HOME
      • LAUNCH
      • BUSINESS
      • LEADERSHIP
      • MONEY
      • SUCCESS
      • NEWS

      Copyright © 2021 ExpertHub.info

      Login to your account below

      Forgotten Password?

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In