When it comes to business, all people think about is money and revenue. However, people rarely think about the legal side of the business. This is especially true for startups. Starting from nothing is okay, but that does not mean you should start carelessly.
Mistakes that Startups Make
Karla Dennis, the founder, and CEO of Karla Dennis and Associates, Inc., says:
“Just because you are new in the field of business doesn’t justify your mistakes.”
Although there are countless ways in which a business may stumble, Karla Dennis highlights the following three common mistakes that most startups make:
- Lack of Separation Between Business and Oneself
Most startups, Karla says, fail to separate their business from themselves. Most startups keep using their personal bank accounts and credit cards for business purposes. That is not wise. As a successful business owner, you mustthink of your business as something separate from yourself.
- Misclassifying Workers
Startups often pay individuals as consultants or independent contractors while they are just employees. Karla says you must know the difference between consultants, contractors, and employees and not mix them.
- Not Filing Tax Returns
As per Karla’s experience as a tax advisor and entrepreneur, startups often assume that just because they did notmake any money, they do not need to file a tax return. That is a grave mistake. If you are legally a business and have a license, you should always file a tax return based on the year you formed the business.
Be Careful, and Do Not Ever Assume You Know Everything
Karla says:
“The most important thing to know about starting a business is there is a lot to know running a business.”
That is exactly why you need an effective team to support you. Do not assume that you know everything about the business. It would be great if you let tax advisors like Karla help you with tax-related issues. The same is true about other domains of your business. It is important for you to run your business carefully. As Karla says:
“An ounce of prevention is worth a pound of cure.”
Start from an Online Brand
Karla strongly recommends starting a brand online first. This is because Karla says it gives startups enough time to prove and polish a concept. This is typically a low-cost entry. Once you get into consistent revenues, you can then focus on growing and sustaining profitability. You can move on from there. Profitability and the needs of the client will dictate the need to take the business to a brick-and-mortar location.
How Can Karla Dennis and Associates Inc. Help You?
Karla’s firm, Karla Dennis and Associates Inc., works with startups regularly. Her team handles all their paperwork and educates them on what they need to know. By helping startups with tax filings, Karla’s firm enables startups to jump-start and focus on sales. That is how her firm helps startups do everything by the book while generating revenue.