Issue link: https://docs.hic.us/i/403552
right for your business. Done correctly, it can be quite an effective marketing tool. Besides, names are a major part of the embroidery business, so it stands to reason that we should be an expert in name creation. Consult With Professionals Your next step is to consult with an accountant and a lawyer as well. They can help you sort through the mound of details facing small businesses including, taxes, state and federal regulations, local ordinances, liability, licenses, etc. Even if you plan to do your own bookwork, you will be wise to discuss the details with an Accountant. Also, take the time to learn the differences between Sole Proprietorship, Partnership and Incorporation, and which one is appropriate for your business. Here is a general description of each: Sole Proprietorship This business structure is simple and inexpensive to establish. A single owner owns and operates the business himself. That owner is responsible for all risks and liabilities but gets all the profits and benefits. Taxes are figured at individual rates. Partnership A partnership is also simple and inexpensive to establish. Two partners combine skills, forces and resources, while assuming dual liability. They share all profits and benefits. In addition, each partner is liable for the entire business's risks and debts. It's best to formalize an agreement from the start in order to avoid problems later. Corporation In general, a corporation limits the owner's personal liability for the business. A corporate structure is complex and costly to set up properly. It is a separate entity responsible for it's own debts , risks and liabilities. Investors, including owners aren't generally liable beyond their investments. Owners are taxed on personal income, while the corporation is taxed on business income. There are various corporate structures that have various benefits and risks. Assume nothing! Discuss everything with a professional. On the surface one business type may look ideal, but beneath the surface, it may not be. Visit your local Chamber of Commerce as well. They can usually provide plenty of useful startup information. Choose A Location www.hsi.us care@hsi.us 29