In reference to undertaking a new and arduous endeavor, Chinese philosopher Lao-tzu is quoted as saying, “A journey of a thousand miles begins with a single step.” If he were reincarnated as a modern accountant or business lawyer, he might tell a client about to start another type of new and arduous endeavor, “The key to a successful small business is choosing the right legal entity.” These entities vary widely in terms of difficulty to create and maintain, as well as in their tax and legal advantages. Knowing which one will work best for you — and when you might need to change it — can often be confusing, so let’s take a closer look at four of the most common types. Sole Proprietor Structure: An unincorporated business owned and run by one individual. Difficulty: This is the simplest, least expensive and least painful way to start a business. Just the act of conducting commerce qualifies you as a sole proprietor, though you will have to obtain certain licenses and permits, depending on which state you are in. Pros: It only involves one person (you) so you don’t have to worry about anybody else telling you what to do. As sole proprietor, you can arbitrarily decide when to start your business and when to terminate it, and if you die, it automatically ceases to exist. Taxes are simple as there is no difference between you and your business –- you are taxed as one entity –- reporting your gains and losses with […]

As a small business owner who runs a marketing firm, I hear all the time about the relationships that didn’t work out. Small business owners who can’t find a marketing firm they “click” with, marketing firms that are frustrated by the clients who balk at every idea, etc. Communication is key to avoiding these issues. Remember, marketing is a partnership. Nobody plays tennis alone. You need to be able to do your part to make the relationship work. And a big part of doing your part is being extremely clear about what you want. To do that, you need to ask yourself some questions first. Ask Yourself Before You Hire a Marketing Firm. . . Are You Willing to Listen and Try New Things? Before you spend a penny on your marketing, it’s time to ask yourself if you’re ready, willing and able to listen to the person you hire. No one says you have to implement every idea. Working with a marketer doesn’t mean slavishly adhering to everything they have to say. But if you’re not willing to even consider something different from how you’ve always done it, you’re wasting your money paying for someone else’s new ideas. What’s Your Communication Style? Every business owner is different. Some people prefer to communicate with their marketing firm very rarely, communicating primarily through emails and scheduled meetings. Other people want more time from their marketing team, expecting instant availability and response to calls, emails and tweets. Understanding your communication style is very […]