Thinking of Starting a Business? Remember to Consider Taxes, Credit and Hiring in the Process
Have you decided to take the leap and start a business? Congratulations! While there are a variety of factors for business owners to evaluate when making the decision to start a business, there are three topics that are particularly important: taxes, credit and hiring. Taxes, credit and hiring are a must for every business owner and lay the foundation for the business to run successfully. Here are a few tips to consider regarding taxes, credit and the hiring process for your business.
Whether you have formed an LLC or corporation in Delaware, or are considering forming a business here, please note it is required that LLCs (Limited Liability Companies) and LPs (Limited Partnerships) that are formed in Delaware pay an annual tax of $300.00 by June 1st of every year. All corporations incorporated in Delaware file an Annual Report and pay a franchise tax. The Annual Report and franchise tax fee amount, which vary and range from a minimum of $225.00 depending on the amount of authorized shares of stock, must be filed online prior to March 1st of every year.
As is often times the case with personal credit, the profile of your business credit impacts the ability to get financing and favorable interest rates. In addition to this, potential investors are more likely to work with a company that has good credit. The U.S. Small Business Administration has an excellent article with tips for businesses to manage their credit profile. There are a variety of factors that contribute to a positive profile including paying invoices promptly to show financial responsibility and keeping an eye on the credit profile of your business to detect any credit score changes. In addition to this, establishing and maintaining a strong business credit prevents business owners from needing to utilize personal credit for financing.
Hiring is often times a make or break for business owners. It is important to hire the best individuals to grow the company and put a strong infrastructure in place, but hiring too many individuals or the wrong individuals can often times be an issue as well. By having too many employees, business owners are tasked with a great deal of expenses including salary, insurance coverage and any other fringe benefits that may be offered to that employee. Depending on the amount of work needed versus the number of employees on staff, these individuals may become too great of an expense for business owners. Hiring the wrong type of employee can impact the company as well. Employees with negative attitudes and a poor work ethic are detrimental to the business and its reputation. Your business is your brand, and it is important to have the best individuals in place to represent your brand in a positive way.
By keeping up with taxes, maintaining good credit and hiring the right individuals, your business will be set up for success and ready to grow.