how to help a client start a new business

of course there’s a checklist … with 64 items to consider.

by ed mendlowitz
the 卡塔尔世界杯常规比赛时间 practice doctor

many clients start small businesses and some grow into big businesses. anyone starting a business needs assistance at the beginning from an accountant on choosing an entity, determining the initial capitalization, getting an identification number and setting up the books.

more on marketing: the tax effects of buying or selling a business | how to offer conflict resolution | get your clients talking about retirement | how to assist investment clubs | when clients remarry | seven questions to suggest estate planning | four reasons to perform tax projections | four additional services to suggest
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services also related in this area are buying a franchise, entering into a partnership and structuring investments. all proposed transactions by clients should be reviewed by an accountant for the tax consequences of such activities.

who needs this service

this service is for every client considering starting a business.

why the accountant is suited to offer this service

we are the best qualified to offer these services, and can do a fine service helping the client get started.

introducing the client to the service

you must constantly let your clients know that you do new business analysis and consulting.

checklist

here is a checklist you can provide to clients who are considering starting a business.

checklist for starting a business

the following is a guide of the issues that need to be considered by someone starting a business. no opinions are offered or should be inferred. you should seek professional guidance and advice where necessary on some of the issues.

1. business name – a person’s name or names, or a fictitious name such as “smarty pants business associates.” assumed names need to be registered with the local county clerk

2. type of entity (choose one of the following). see questions that follow before making a decision. use an attorney where applicable:

• sole proprietorship
• single member llc
• general partnership
• limited partnership
• limited liability company
• s corporation
• c corporation

3. determine state of organization if choices are available

4. will property or assets be transferred from another entity?

5. will premises be rented or owned, and if so, in what state?

6. if business will have inventory, where will it be kept and in rented or public warehouses (this might determine the state of organization)?

7. is business part of a controlled group or related entities?

8. if business will own real estate, consider a passthrough entity, unless it is foreign-owned

9. if foreign ownership consider an entity that is not a passthrough entity

• become familiar with withholding requirements for distributions
• determine whether there is a tax treaty with country where owners are

10. if foreign-owned, address of owners

11. obtain a taxpayer identification number (tin) for the business. even if a one-person business with no employees or independent contractors this might be advisable. file irs form ss-4, which can be accessed at www.irs.gov

12. licensing with professional board, state or locality as a business if a professional practice or if required. this also applies to one-person practices or businesses

13. join professional or business associations if applicable

14. determine how business will be financed

15. project cash flow and cash flow management methods

16. establish owner’s payroll or draw policy

17. location – office or retail space

18. premises – own, rent or sublet

19. solo or with a partner

20. buy-sell agreement if more than one partner or owner

21. determine capitalization and loan policies for initial and subsequent investments

• if loans, make sure there are notes with interest and due dates stated

22. tax elections and policies to be established

• basis of accounting – cash, accrual or other
• inventory method
• fiscal year if applicable
• retirement plans
• hiring children
• startup costs
• expense reimbursement policy

23. business plan (and strategic plan)

• identify service niches or specialties, or position in marketplace
• identify how sales will be made
• vision
• brand
• business philosophy
• a thorough business plan should be prepared

24. technology hardware and technical and specialized software

25. obtain accounting software

• establish billing and invoicing methods and payment terms
• establish policies for paying vendors
• determine if payroll will be done in-house or with an outside service bureau
• administrative software such as mailing list and customer relationship system, calendar and scheduling software

26. cloud, paperless strategies and document management systems

27. mobile strategies

28. personnel levels and admin support

29. use of permanent or part-time staff, consultants or outsourcing partners

30. if using independent contractors, fill out irs questionnaire form ss-8

31. employment agreements if necessary for your type of business

• for all employees
• for executive and managerial employees
• confidentiality agreements
• employee handbook

32. staff scheduling, dispatching or work assignment and oversight or review methods

33. if there is more than one owner, what functions and work each will do and be responsible for

34. determine necessity of getting pro forma contracts to use with customers

35. get a logo

36. get a website

37. need secure portal availability

38. email addresses

39. if there will be patents or other intellectual property determine who will own them – the business or individuals

40. open a bank account

41. determine if you want a post office box, or mail to be delivered to your office

42. office equipment, filing, telephone, postage meter, courier accounts, stationery

43. communications methods

44. insurance – umbrella, workers’ compensation, general, product and malpractice liability, general office

45. medical insurance

46. life insurance on owners

47. disability income insurance on owners

48. disability buyout insurance if more than one owner

49. pension or retirement plan contribution policy

50. owners’ meetings frequency, location and length

51. owners’ retreat

52. document all important decisions with memos or minutes of meetings

53. owners’ compensation and profit division policy

54. owner benefits policy such as vacations and time off

55. publicity, marketing, advertising and sales promotional activities

56. social media strategies, and establishing accounts

57. networking methods

58. referral sources

59. mailing list – establishing and maintenance

60. engaging a mailing service

61. announcements of new firm or business

62. how will you create excitement?

63. practice or business continuation agreement if a single owner

64. exit strategy (already? “didn’t i just get started?”)

posted on august 30, 2023