People often think of entrepreneurs as being people who are very separated from those in the traditional business world. Instead of being subject to any hierarchies, entrepreneurs forge their paths and march to the beat of their drummers. While it’s true that many entrepreneurs are often more content to work solo than they are to […]
Relocating a company is a tough and stressful task. It is risky to move a business, as you will lose some clients, loyal staff that cannot relocate, valuable things, and incur unnecessary and unexpected expenditure. This article highlights vital aspects to know when relocating a business to New York City from Chicago.
You ought to understand that the cost of running a company is high in this town. Get a realistic estimate of both the present and future expenses and include them in your budget. You can opt to lease heavy machinery and storage facilities to lower the operational costs. New York is the home for consultants who you can outsource instead of employing them.
2. Legal Regulations
Moving a small business as a sole proprietor from Chicago to NYC is easy. You need to register the new outlet as per the registration procedure in the city and discontinue the old one. A business lawyer will guide you on the registration process used in New York. The regulatory and legal steps involved in moving a company are similar to starting a new business.
3. Licenses and Permits
Check with the commerce department about the required permits and licenses to run your small business. The local zoning laws outline the process involved in applying for such licenses and the charges. Note that you must pay the fees to receive a grant and renew it as provided by the law. New York traders use these documents to prove that they are running legit businesses.
4. Know the Industry
The internet is quite resourceful regarding products and industries in the NYC market. Check out the reaction of potential consumers from reviews on substitute items. Find out the proximity of the producers to the market. Determine the ideal means of transport and communication techniques adopted by the firms.
5. Master the Environment
Learn about the new location from reliable sources before relocating. Read newspapers and magazines, about New York to have a general feel for local settings. The utility companies, chambers of commerce, real estate brokers, employment agents, and economic development agencies are a dependable source of such information. Visit the sites to study how the local businesses operate.
6. Understand the Market
Entrepreneurs are moving their businesses to the city to satisfy the saturated market. It is essential to conduct a comprehensive survey to understand the targeted segments. Find out the kind of products the potential consumers want and the government policies affecting trading activities. Tailor your goods and services to match the available market and set regulations.
Businesses operating in this region must pay taxes. The rates vary depending on the size and income made by an enterprise. Make sure that you file your returns as per the trading provisions. A tax expert will help in closing out tax year in Chicago and consider the several tax consequences involved in moving.
After mastering the above tips, moving will be simple. Hire professional movers that specialize in NYC to Chicago moves in order to protect your possessions. Remember to advertise your new company to inform potential users about your existence.
When beginning the journey of entrepreneurship, most people are confident they know their business, yet many are less clear about the best way to structure their business to maximize profits, limit exposure to liability and minimize the time and effort consumed by recordkeeping. Exploring the following options and making the best decision on how to structure your business now will pay dividends down the road.
This is the simplest type of business structure and may be suitable for you if you intend to be a one-person business. Unlike other business entities, a sole proprietorship is taxed only once. Profits or losses are calculated on Schedule C, with the result transferred to your personal 1040 form for tax purposes. However, as a sole proprietor, you are fully responsible for your social security and Medicare taxes, which are reported on Schedule SE. Estimated taxes are required to be paid in quarterly installments.
One negative of a sole proprietorship is that you are personally responsible for any liabilities, which means your assets can be exposed. Another is the difficulty you may encounter trying to raise money from banks for business expansion.
If you and one or more other individuals want to go into business together, a partnership is an option. Partnerships are of two major types:
- General partnership – General partners manage the day-to-day business of the company are assume the liability for its actions.
- Limited partnership – A limited partnership has both general partners and limited partners who are investors only and assume no control over the business operation.
According to DelawareInc.com, limited partnerships are more complex regarding paperwork and accounting than general partnerships. A partnership is not taxed as an entity but must file a tax return. The partners pay taxes on their share of profits. Partnerships use IRS Form 1065. Personal liability is a concern if you are a general partner.
A corporation is a separate legal entity. This provides you as the owner the greatest level of protection. The corporate assets are exposed but not your assets. A C corporation requires the most planning and compliance with regulations and is expensive to form; you’ll likely need to enlist experienced corporate attorneys to form a C Corp. Additionally, a corporation receives what some call double taxation. The corporation is taxed at the state and federal level, and the shareholders are taxed at the personal level. Perhaps the greatest advantage of a corporation is its ability to raise money and sell shares of stock.
An S corporation is something of a hybrid entity. It offers you as an owner a shield against liability, yet the corporation itself is not taxed. The rules and regulations are similar although somewhat less complex than a C corporation, and there are restrictions on who may own an S corporation and the type of stock it may issue.
Limited Liability Company
An LLC has many of the best parts of a partnership and a corporation. Similar to an S corporation in offering liability protection and no double taxation, an LLC has greater freedom in ownership. According to Texas LLC Pros, other pros of this business entity include perpetual existence, minimal formalities, and management flexibility.
Selecting the most appropriate type of business entity is an important decision you should make with the guidance of an experienced legal professional well-versed in business law.
For your small business to thrive, you need to have a strong Internet presence. However, gone are the days where you could simply toss up a website and expect it to do everything you need. While having a website is a must, there are many other aspects to an Internet presence you need to incorporate […]