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HEAVENS HARVEST

MINISTRIES – FINANCE NIGHT

Starting a Business

Presented by: Jennoa R. Graham, Ph.D.

Friday, August 9, 2013

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KEY TERMINOLOGY Business – A trade or profession.

Sole Proprietor - An owner of an unincorporated business enterprise.

Doing Business As - A name under which a corporation conducts business that is not the legal name of the corporation as shown in its articles of incorporation.NOT Recommended for Use If required; use owner’s name

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KEY TERMINOLOGY (CONT.) Corporation – A body that is granted a

charter recognizing it as a separate legal entity having its own rights, privileges, and liabilities distinct from those of its members.

Partnership – A legal contract entered into by two or more persons in which each agrees to furnish a part of the capital and labor for a business enterprise, and by which each shares a fixed proportion of profits and losses.

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ASSIGNMENT FROM FINANCIAL PLANNING & WILLS CLASS (7/12/13)

Trust – Property or money is held for the beneficiary until a period of time for transfer.

Endowment – Funds or property donated to an institution, individual, or group as a source of income.

Legacy - Something handed down or received from an ancestor or predecessor.

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OVERVIEW Business Types

Things to Consider

Taxes

Business Plan

Registration

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BUSINESS TYPES Nonprofit

Green

Startups/High Growth

Home-Based

Online

Franchise

Buy Existing

Self Employed/ Independent Contractor

Women-Owned

Veteran-Owned

Minority-Owned

People with Disabilities

Young Entrepreneurs

www.sba.gov

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THINGS TO CONSIDER What am I selling?

Product Service

How much is going to going to cost? Time Money

Do I need to store what I am selling? Location Preservation

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THINGS TO CONSIDER (CONT.) Who are my customers?

Demographic Geographic

How will customers order? Phone Online Email

How will customers receive product/service?

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THINGS TO CONSIDER (CONT.) Will I need help?

Employees Responsibilities Hierarchy

Services Land line/Cell phone Printing/Shipping

What computer system/apps are required? Maintenance Technological Support

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TAXES Sales Taxes

Individual State Laws/Regulation Updating Sales Tax Software Monthly/Quarterly Reporting

Principal Business Activity Code Designed to classify by type of activity Administered by the IRS Internal Revenue Code Based upon the North American Industry

Classification System (NAICS) – Federal statistics

See NAIC - www.census.gov/eos/www/naics/Activity Codes - www.irs.gov

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TAXES Quarterly Estimated Payments - Federal

1040ES - Independent Contractor 1120W – Corporations Sole Proprietor & Partnership (N/A – only for

Fisherman & Farmers

Annual Federal Filing Schedule C – Individual; Sole

Proprietor/Independent Contractor 1120 – Corporation 1065 – Partnership

See www.irs.gov or tax professional

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TAXES Quarterly Estimated Payments - State

500ES – Individual; Sole Proprietor/Independent Contractor

602ES – Corporation CRES - Partnership

Annual State Filing 500 – Individual; Sole Proprietor/Independent

Contractor 600 – Corporation 700 - Partnership

See www.etax.dor.ga.gov or tax professional

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BUSINESS PLAN Visual plan – Write it and make it plain

Executive Summary – Purpose; 5 min pitch

Company Summary – Fun facts

Products and Services – What do I offer

Market Analysis – What else is out there

Strategy – How am I going to succeed

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REGISTRATION Federal EIN Number

9 digit number (##-#######) Sacred as a social security number Register at www.irs.gov

Organization type Sole Proprietor Corporation Partnership

Address Responsible Party Principal Business Activity

This MUST align with the NAIC Business Activity Code

Other; depending on organization type

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REGISTRATION (CONT.) Georgia Business ID

9 digit number (#######-XX) Sacred as a social security number Register at www.gtc.dor.ga.gov

Organization type Sole Proprietor Corporation Partnership

Address (Mailing & Location) Federal EIN # Account Type

Quarterly Annual

Make estimated payments online

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REGISTRATION (CONT.) State of Business (Excludes unincorporated)

Must register in each state where doing business State were product/service is purchased or shipped See a sales tax professional for more information

Register at www.sos.georgia.gov $100 filing fee (may vary per state) Signer Filer Business information Registered Agent

Business Owner or Delegate Agents can be hired – for a fee ($99)

Minimum of 5% share for sale Incorporator

Articles of Incorporation – SAVE IN A SAFE PLACE!!!

Signer, Filer, Agent, and

Incorporator can be the

same person!

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SUMMARY Understand YOUR business type(s) and research

all legal, tax, market, and consumer matters

Think about the day to day aspects of your business and review “Things to Remember”

Pay TAXES… estimated and annual

Create a detailed business plan

Register your business… Federal, State, Corporation Keep all documentation in a safe place

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Vision

Document

Communicate

Implement

Review/Revise

SUMMARY (CONT.)

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REFERENCES The American Heritage® Dictionary of

the English Language (2009), Fourth Edition, Houghton Mifflin Company. Retrieved August 5, 2013, from http://www.thefreedictionary.com

IRS (2013). Principal Business Codes, Tax forms and definitions. Internal Revenue Code, Retrieved August 5, 2013, from http://www.irs.gov

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REFERENCES U.S. Small Business Administration

(2013). Business types, definitions, and tools. Starting and Managing a Business, Retrieved August 5, 2013, from http://www.sba.gov

GA Department of Revenue (2013). Tax forms and definitions. Office of Tax Policy, Retrieved August 5, 2013, from http://etax.dor.ga.gov

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REFERENCES Georgia Secretary of State (2010).

Corporation forms and registration. Retrieved August 5, 2013 from http://www.sos.georgia.gov

United States Census Bureau (2013). North American Industry Classification System, Retrieved August 5, 2013 from http://www.census.gov/eos/www/naics/