Random thoughts about starting a business…

Most folks are best served by starting out as a sole proprietor.  Create the more sophisticated entities (Sub S, Corp, Partnerships, LLC) if things take off.  Save yourself the time and expense of incorporating until after the company is established.

Partnerships rarely work out.  Something like 8 out of 10 partnerships don’t make it.  I highly recommend a single decision maker.

You only need an Employer Identification Number (EIN) if you create a partnership, Limited Liability Company or Corporation or you’re a sole proprietor who pays wages (rare).

Most folks start off using the cash accounting method.  Accrual entails a level of bookkeeping competence most folks don’t have.

Profit is NOT the same as Cash Flow.  You can go broke making money.  Call me at 605-336-1669 for an explanation.  This is fundamental to understanding and running a successful business.

Uncle Sam REALLY gets mad when you don’t pay employment taxes.  They’re not nearly so tough on income tax.  ALWAYS pay your employment taxes