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HOW TO START A SMALL BUSINESS IN CALIFORNIA

HOW TO START A SMALL BUSINESS IN CALIFORNIA. LEGAL AND FINALCIAL ASPECTS. ARE YOU PLANNING TO DO A BUSINESS IN USA?. You may: Finance Start-Up Buy a Business Buy a Franchise. Finance Start-Up FOLLOW 10 STEPS:. Step 1: Research and Plan Your Business

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HOW TO START A SMALL BUSINESS IN CALIFORNIA

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  1. HOW TO START A SMALL BUSINESS IN CALIFORNIA LEGAL AND FINALCIAL ASPECTS

  2. ARE YOU PLANNING TO DO A BUSINESS IN USA? • You may: • Finance Start-Up • Buy a Business • Buy a Franchise

  3. Finance Start-UpFOLLOW 10 STEPS: • Step 1: Research and Plan Your Business • Step 2 Get Business Training and Expert Advice • Step 3 Select a Customer-Friendly Location

  4. Step 4 Finance Your Business • Federal, state and local governments offer a wide range of financing programs. • Low interest loans- Government/SBA backed loan from any commercial bank. • Venture capital- Cash investment from Small Business Investment Companies (SBIC) in business such as expanding child care centers; creating energy efficient technology; and developing marketing campaigns for tourism

  5. Step 5 Select a Business Name • Use your own Name or • Fictitious Name or Trade Name- File a Statement with the County Recorder-Clerk's Office. • Use unique name, Check with the Secretary of State for a name different of others.

  6. Step 6- What Legal Structure you want • Sole Proprietorship • Partnership • Corporation • S Corporation • Limited Liability Company (LLC) • Cooperative

  7. Sole Proprietorship A business owned and managed by one individual who is personally liable for all business debts and obligations. Don’t need to Register with the Secretary of the State.

  8. Partnership • You should have a legal partnership agreement. # General Partnerships- profits, liability, and management duties are divided equally among partners unless provided otherwise.

  9. Partnership # Limited Partnerships- One of more partners may have limited liability as well as limited input with management decisions. • pay to the Franchise Tax Board an annual minimum tax of $800.00.

  10. Partnership • # Limited Liability Partnership(LLP)- Joint Ventures act as general partnership only for a limited period of time or for a single project.

  11. Corporation It may be either Stock or Close corporation. Advantage: • Limited Liability • Ability to Generate Capital • Corporate Tax Treatment • Attractive to Potential Employees

  12. Corporation • Disadvantages: Double Taxing Additional Paperwork Time and Money To Register, File Articles of Incorporation to the State.

  13. S Corporation • A special type of corporation created through an IRS tax election. • can avoid double taxation. • It has no more than 100 shareholders, has only one class of stock. • Its only shareholders are individuals, estates, exempt organizations under Section 401(a) or 501(c)(3) etc. • A domestic nonprofit LLC can get tax exemption.

  14. Limited Liability Company (LLC) • A hybrid legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership • LLCs are not taxed as a separate business entity.  Members are taxed for their profit. • May be for profit or not for profit LLC.

  15. Cooperative • A business or organization that is owned by and operated for the benefit of those using its services. • Profits and earnings are distributed among the members, also known as user-owners. • Such as Credit union, Consumer cooperative corporation etc

  16. Step 7 Get an Employer Identification Number (EIN) Before hiring employees, you must get an EIN, also known as a federal tax identification number from the U.S. Internal Revenue Service.

  17. Step 8Register for State Taxes • Required to register for one or more tax-specific identification numbers, licenses or permits, including income tax withholding, sales and use tax (seller's permit) etc.

  18. 9th StepObtain Business Licenses and Permits • To determine what business needs what license, go to- • http://www.calgold.ca.gov For e.g. To do a business of the Travel Agency/Agent that sells or arranges air and/or sea transportation in the State of California must register as a Seller of Travel from the Office of the Attorney General

  19. Step 10 Employer Responsibilities • Obtain an Employer Identification Number (EIN) • Set up Records for Withholding Taxes • Federal Income Tax Withholding (Form W-4) • Federal Wage and Tax Statement (Form W-2) • Employee Eligibility Verification (Form I-9) • Register with Your States New Hire Reporting Program • Obtain Workers' Compensation Insurance • File Your Taxes etc.

  20. Buy a FranchiseI.E. SUBWAY BUSINESS • Alegal and commercial relationship between FRANCHISER, the owner of a trademark, service mark, trade name, or advertising symbol and THE FRANCHISEE, an individual or group wishing to use that identification in a business. Go to http://sbdcnet.org/SBIC/franchise.php To see what type of franchise business available.

  21. THE END • THANK YOU ALL.

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