Don’t opt for sole proprietorship: Chances are you are starting your venture under this type of business structure because it entails little paper work and few legal formalities and nominal set-up costs. It’s attractive to many entrepreneurs because you don’t pay business taxes, you get to make all the decisions about your business and do not have to adhere to any government standards regarding day-to-day operations. But there are real down sides of going with sole proprietorship that you should be aware of:
You don’t have any liability protection. If you are sued, the plaintiff can go after your personal assets.
You are not automatically eligible for business tax deductions which can help shore up your bottom line
You are least likely to be attractive to traditional lenders should you choose to expand or grow your business.
Don’t start the year without a tax plan: Setting a tax strategy by December will allow you to take advantage of tax deductions from the start of the new year. It keeps you financially organized and in the end, can save time in preparing your taxes and even save money if you hire an accountant to do our taxes. Such a regimen allows you to better focus on growing your business through creativity, innovation and customer service enhancement.