You may have been too busy to notice that things have changed in your business. Maybe you started out as a one-man or one-woman show, and now you’ve got a real team working for you. Or maybe you’ve shifted directions from where you first started out with your business.
No matter what the change, it’s important to make sure that you have the appropriate business structure, business licenses, and policies in place as your business needs change. Here are some questions to ask yourself to make sure you’re in line with what your business requires.
Have the changes affected my vulnerability?
If you operated as a solopreneur with a hobby business, you probably didn’t have much risk. But now, if you have corporate clients or employees who rely on you, you’re automatically more vulnerable than you used to be.
If this is the case, consider changing your business structure. Forming an LLC or corporation can protect your personal assets in the event that you are ever sued.
Am I complying with state and federal requirements?
As your business evolves, there will be more requirements for it. For example, if you started your business as a home business, you may have only needed a business license and a home occupancy license. But you decided to move to retail space, you will need a whole other set of permits and licenses.
Do I need to hire an accountant?
You may have been fine filing your own business taxes for the past several years, but if your tax situation is getting more complicated as time goes by, you’ll benefit from hiring a professional to help.
Am I protecting my employees?
Also as you grow and hire staff, you have responsibilities to them as well. Check to find out if your state requires you to carry workers’ compensation insurance. If an employee gets hurt on the job, and you don’t have it, you will be liable for out of pocket medical expenses and vulnerable for a lawsuit.
Do I have documented processes and procedures?
When you operated on your own, you knew how to do everything that your job entailed. But as you bring on new hires, you need an easy way to help them learn their roles and responsibilities. Having an employee handbook as well as documentation on all processes can make the training go much smoother.
Change is a good thing. It’s just a matter of keeping up with it. Make sure your business is aligned with any evolutions you’ve experienced so that you’re compliant and protected.
Is it time to change your business structure? Let CorpNet help you create a Limited Liability Company or corporation with minimal headache.