Choosing a Business Structure

Diane asks:

“I would like to know if I should set my business up as a LLC (Limited Liability Company)??”

The answer depends on whether or not the state in which you work recognizes the limited liability structure of business ownership.

Not all states offer this type of structure. I’m in New Jersey, which did not allow LLCs until several years ago.

Each state’s Web site offers a “start a business” section which provides you with basic information on how to form a business.

For example, Texas offers a four-step tutorial to start a business in that state. If that’s where you live, that’s what you’ll consult.  Otherwise, use a search engine to find your state’s official Web site and look for the “start a business” link.

You’ll also need to speak with a small business accountant in your state. I know – this is the hard part - but finding and investing in an accountant is not a difficult task.

Do you know anyone in your state who’s already in business that can recommend an accountant to consult for 30 minutes? It really is worth the cost, which in many cases is around $100 to ask lots of questions in that 30-minute timeframe. Your passion for business is worth that.

Learn your options from experienced professionals who will give you smart advice. Then you can move forward in business knowing that your foundation is rock solid.

Gift Basket Designers: Did you start as a sole proprietor and then change to an LLC? Or perhaps you’re thinking about going that route? Share your comments here by clicking the “Leave a Comment” link above.

[tags]gift basket, gift baskets, business structure, setting up a limited liability company LLC, gift basket business[/tags]

Finding a Mentor in Your Area

A designer Emailed me with the following question.

“How do I find a mentor? I want to start my business the right way and want the experience of someone who understands the industry.”

Response:

What type of mentor are you seeking — one who’s an expert in gift basket design, or one who’s able to guide you in general business practices?

I don’t believe you’ll find a person in your area who’s versed in both. Most gift basket designers are focused on building their businesses and are not willing to share their knowledge. You can’t blame them.

To have someone learn what they know and take that information to gain a following could spell the end of the mentor’s business.

My advice is to seek general business help from a small business center in your area. These organizations are usually sponsored by states in which they’re located. The department of economic development, new business development, or equivalent name is where your search starts.

As you learn about business planning on a local level, search the Internet for leads to learn more about gift basket design. DVDs such as Gift Basket Basics and gift industry trade shows that host gift basket seminars help to elevate your design knowledge.

It’s wonderful when you can find both sides of success in the same place, but that’s often not the case in this industry. Still, it’s terrific to have options available that satisfy your need to learn and profit.

Do you have a comment, question, or solution about finding a mentor? Click the “Leave a Comment” link above and let us know your views.

[tags]finding a mentor, gift baskets, department of economic development, gift basket classes[/tags]

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