There is no doubt about it: Starting a business is a process of trial and error. No matter how well you plan ahead, some mistakes are inevitable. With that said, getting your startup off the ground does not need to be unnecessarily challenging.
Luckily for you, there have been many entrepreneurs who have been in your shoes. This is good news because it means that you can learn from some of their mistakes. To help you avoid the same troubles they had, here are four blunders to avoid.
1. Not establishing a limited liability company or corporation
When starting a business, entrepreneurs generally have four options:
- Sole proprietorships
Because sole proprietorships are the easiest structure to set up, it is common for new business owners to choose this legal form. The problem with this is that doing so can cause you to lose out on tax benefits that you can qualify for with an LLC or corporation.
2. Not researching trademarks before choosing a name
If you have thought of the perfect company name, do a little research before you decide to start printing labels. Google your potential name or look it up via the United States Patent and Trademark Office official website to see if it will infringe on someone else’s trademark.
3. Not considering tax deadlines and requirements
Whether you are an individual or a business, tax laws can be complex, but it is especially so when it comes to business deadlines and requirements. As such, it can be helpful to get an early start on familiarizing yourself with everything you need to know about your upcoming tax season.
Although some mistakes are inevitable when you start a business, knowing what to look out for can help you avoid some of the worst.