The types of small business taxes that you will end up paying will depend on the way you structure your business (we’ll get to that later). But, the three main types of business taxes are:

• Income Tax: Every business must file an annual tax return. For corporations, they pay the corporate rate whereas pass-through entities pay an individual tax rate.
  
• Estimated Taxes: If you’re an independent contractor or freelancer who is expected to pay at least $1,000 in taxes, then you’ll be expected to pay estimated taxes on a quarterly basis. If you miss these deadlines, you may face penalties. The deadlines for quarterly estimated taxes are as follows: July 15, June 15, September 15 (in 2020) and January 15, 2021.
  
• Self-employment Taxes: Self-employed individuals pay Social Security and Medicare taxes. You are expected to pay this if you make more than $400 in net earnings or if you work for a religious affiliation that elected an exception.

It would be great if the right candidate naturally showed up at your door when you are ready to hire. The truth is that there are many surefire ways to find the right person, but they take time and as such, have costs. 

The first step is to write out the job description, which will include a summary of the position, line items or bullets of their job responsibilities, and the required experience and/or education to fulfill the position. You can post the job description on job boards (there are likely to be fees for this) or across social media (can be free unless you pay to sponsor the post). Another option may be to hire a recruiter. However, this may be a more costly option than you are ready to take on. The average cost of a headhunter is $20,283. 

When you start a business from your home, there are various legal considerations. These laws vary by state and locality, so it’s important you can define the type of business you plan to run. Then, it’s best to check that you are allowed to legally run your business from your home. 

• Licenses: You most likely need a license to run your business. For certain types of businesses, like a hair salon for example, you may need additional licenses or permits. The same goes for daycares that are run from homes. Get in touch with your state office for business registration to find out more. 

• Variance: In some instances, your business may be illegal to run from your home in your area. Your best next step for action is request a variance, which is a government exception. If you’re a small business that won’t have people coming into your home or affecting traffic in the area, then you have a higher likelihood of receiving a business variance. 

Small-business loans are issued by banks or participating lenders and guaranteed by the SBA. The SBA is able to guarantee percentages of these small business loans as follows:

• Up to 85% of loans for $150,000 or less
• 75% of loans that are for more than $150,000

Taking your business online or starting a new online business isn’t something that looks the same for everyone. In the same way that everyone finds business funding that works for their needs, business owners create online stores according to goals. 

The financial aspect of building a business is usually the most intimidating piece, especially for those who haven’t been saving up to do it or who don’t have extra money laying around. Let us start off by saying: do not let this stop you! There are many ways that you can get the financial support you need to move forward in your business plan; we will share just three. Some first steps are a business line of credit, traditional business loan, or  merchant cash advances. 

To start, a business line of credit is geared towards small businesses as a more flexible loan than a business loan. It works similar to a credit card in that you can borrow up to a certain amount of money and pay interest accordingly. Just like with a credit card, you can use and repay at your discretion as long as you don’t exceed your limit. .

The next option is your traditional business loan which is fairly easy to get since there are many lenders out there looking to partner with business owners. You’ll most likely need a credit score of 720 or higher, a stable source of income, and a business plan (it doesn’t have to be perfect, don’t worry). One of the biggest pluses of a business loan is that if the business fails the loan doesn’t have to be repaid *in most cases. This should give most borrowers a sense of relief. When applying for a loan, it’s important to make sure you read the fine print – there are usually early repayment penalties that come with a loan, so finding the right loan for you is crucial. 

Finally, you have merchant cash advances (MCA) which isn’t exactly a loan but rather a cash advance that will be repaid according to a percentage of the credit card sales deposited into your business’ merchant account. The benefits of a MCA is that you can apply for one and have funds appear in your business checking account within 24 hours upon approval! The application process is a bit different than from a lender or banker in that a MCA provider will evaluate your daily credit card receipts to assess risk. 

1. Bootstrapping: When you hear bootstrapping, you probably think that it means using money from your own pocket. While that’s one way to bootstrap a business, there are other ways to do it that are still considered bootstrapping. The actual term means that you finance your company through unconventional methods. One may be the use of existing resources or renting out your home to make extra cash. Another way is to use earned revenue instead of borrowing money. A lot of companies make it successfully by traveling down the bootstrapping route. For example, Patagonia, SPANX and GoPro have all become household names, founded by entrepreneurs who funded their businesses as they grew. 

1. • Pros: Without borrowing money, you won’t have to worry about paying it back or paying interest. 
   • Cons: Bootstrapping may not be timely enough. If you have to wait for sales or income from another hustle, then you may lose valuable time that you could have otherwise been spending on the business’ needs with outside funding. 

2. Borrow Money – Formal: One of the most popular options that entrepreneurs use to get their company off the ground (and continue to use throughout its existence) is to borrow money from an institution or government. There are several options to choose from when you borrow money. A few common sources include:

a. Bank loans: You can apply to receive a business loan from a bank. If you don’t know where to begin because there are so many options, try use our Marketplace, which is designed to match you with the loan provider that best suits your current needs. 

• Pros: You can receive loan amounts that may be larger than funding from another source. 
• Cons: There are strings attached to loans, and it’s not always easy for new businesses to be approved for loans because they may lack good credit or business history.

b. Merchant cash advances: A merchant cash advance is a way to borrow a lump sum of money quickly. When you get a merchant cash advance, you promise to pay it back with a portion of credit card sales. 

• Pros: The funding is fast. We mean, really fast. Uplyft Capital can get you business funding within 24 hours through an easy application. You also don’t need to have a good credit history or any collateral. 
  
• Cons: MCAs aren’t meant to be a long-term solution.

c. Investors: There are different types of investors. Angel investors are individuals who lend money usually at the inception of a new business idea. They tend to give large sums. Venture capitalists invest in several new businesses on behalf of clients. This makes receiving venture capital a competitive scene. 

• Pros: It’s a great way to get large amounts of funding and also potentially gain a mentor in the process. 
  
• Cons: It’s costly! After all, it’s an investment so they need it to be worthwhile to give up their money. This means they’ll ask for some ownership (equity) in your business. 

3. Borrow Money – Informal: If you don’t want strings attached when you borrow money, you may be in a position to take a loan from friends or family members. You can also consider crowdfunding platforms like Kickstarter. Even when you seek assistance from personal ties, it’s best to prepare a business plan and showcase how you will be able to pay back the money in a set timeframe. 

• Pros: Since the funding isn’t regulated, there will be more flexibility. You may also feel more motivation to do well so that you can pay back the money more quickly because you care personally about the lender. 
• Cons: At the same time, borrowing from someone with personal connections could lead to higher levels of stress or could damper your personal relationship. 

A small business grant is money awarded to help fund small businesses and nonprofits on their path to success. Governments and private organizations offer small business grants. You can consider a grant to be a gift, because it doesn’t have to be paid back. Unlike a loan, a grant requires no collateral, fees or interest. 

Although the money is free, a grant may come with terms attached. The grant-giver may speculate how you can use the funds. For example, a grant may be provided to hire more employees, so if you use the money to buy equipment instead, you’ll have to pay it back. You may also face legal ramifications. 

• Pay yourself: If you think that forgoing a salary or any form of compensation for your work to instead invest it in the business, then you’re missing a major fact. You are an essential piece of the business (especially in the early stages), so you should set aside some of the money to pay yourself for your time and work. But, you are not your business – that’s why you’ll want to separate business and personal finances (we’ll get back to this later). Paying yourself proves to be especially important in the case that your business doesn’t survive – you will need to have financial stability as an individual. 

• Invest in growth: Now that you have some money set aside to pay yourself, you should also prioritize reinvesting profits into business growth opportunities. Investing in growth creates a domino effect. It shows customers that you care about your business long-term and it also signals to employees that you are invested in the health of the business. 

• Spread out tax payments: That’s right – the only things certain in life are death and, you guessed it, taxes. Be prepared to pay your business taxes. If possible, it’s best to rely on an expert like an accountant or business financial advisor to help navigate these procedures. But, it could be the case that you don’t have the funds for a steady advisor. As such, be sure to set aside money for taxes as if it’s another operating expense. 

• Monitor books: Keep a close eye on your financial documents. This is a tedious part of the job, but there are many software solutions on the market that can help automate most or all of this process. Bookkeeping will help you to not only be able to assess the financial health of your business, but it will help to avoid risk like fraud or theft. 

• Plan ahead: You have a lot to manage in the present moment when it comes to finances, but as a business owner, it’s important to look ahead to the future. Being prepared for events down the line will help you better manage money today. 
  
  
• Budget for marketing: This is vital. Most small business owners decide to forgo marketing costs because they seem like a big expense that’s upfront. However, without marketing, you will have a hard time to get your product or service in front of the people who end up being your customers. Not only is marketing essential for the survival of your business, but it also helps to boost stakeholders’ confidence in your business.
  
  
• Prioritize information security: The world is full of big data, and the amount of data grows everyday. Your customers’ and employees’ information is sensitive and deserves to be treated as such. Be sure to invest in software systems and third parties who can help to keep information secure.

• Separate personal and business accounts: No matter how small or large your business may get, you should start by separating your personal and business accounts. If you’ve opened a business entity like a LLC or S corp, then you probably have this on your list of next steps. However, some freelancers tend to stick to mixing their business and personal accounts from the get go. Down the line, when it comes to tax season and keeping track of accounts, it becomes clear why having two separate accounts proves to be helpful. Not only will you be able to have a clearer view of what your income and expenses are, but you’ll also be able to easily prepare documents for your accountant whenever needed. 

• Use accounting software: It’s all too common for new businesses to focus on keeping low overhead costs. And, that’s a great strategy! But, your accounting software should not be overlooked. There are many free or low-fee options on the market that can automate your accounting processes and help you produce professional invoices. 

• Pay taxes quarterly: When it comes time to file your taxes, you may run into paying fees for having not paid quarterly tax minimums on time. Your accountant can advise you on what these payments may be so that you can prepare to pay them on time. 

• Earn while you grow: Before you quit your day job to start your own business, begin it as a side hustle. Most businesses fail within their first five years of operation, and this statistic isn’t meant to dissuade you from starting your business. Instead, it’s just to take heed of the fact that you’ll want to deal with details in the beginning and prove your minimum viable product. As you find and grow your market, you will be able to rely on the income from your part-time or full-time job until you’re making enough income from your passion project to make it your full-time job. 

• Speak up: Have confidence to speak up about your business and idea to everyone and anyone willing to listen. The people you talk to can potentially become your future customers. And, even if that’s not what happens, they may provide you with valuable insight, ideas or connections that will help your business grow. 

• Practice the 80/20 rule: The 80/20 rule is also known as the Pareto Principle. The gist is this: 80% of your outputs should derive from 20% of your inputs. You can apply this to how you spend your time and also your clientele. Applying this rule in practice helps you to achieve efficiency and limit waste (in terms or both tangible resources and your time). If you have a customer who brings only 20% of value (revenue) to your business but is taking up 80% of your time, then you are going to operate towards a loss overall. Keep this principle in mind when you allocate your time, budget and people to projects. 

• Solve a problem: Good ideas are essentially limitless. However, not every good idea solves a problem or need. If you can focus your business toward solving a problem, then you can easily target your audience to those who need that problem solved. It’s not about reaching the masses from the get go – it’s about serving a niche market and watching that expand with a good quality product or service. 
  
  
• Keep costs low: This one is pretty obvious for anyone running a business. The lower your costs, the higher your profit. But, when you’re getting started, how do you know what’s worth investing in or waiting on? If you can run your business from a home office without employees, then that’s the best way to get started. Hire people on a project basis when you need expertise in certain areas. Invest in marketing and growing your business naturally. When you have enough income, you can expand and scale the business to hire employees and move into an office space (or co-working space) if need be. 
  
  
• Get funding: You’ll likely need capital to get going on your idea. Capital funding can come in various forms, from bank loans and bank credit cards to merchant cash advances. For a business idea that will likely bring in credit card sales in the near future, a merchant cash advance could be a smart option for funding. This method works by giving you cash upfront that will then be paid back from a portion of credit card sales each month. Unlike a loan, you won’t need so many requirements to apply for a merchant cash advance. Many new businesses are denied for loans because they don’t have enough income or high enough credit history. Merchant cash advances can help small businesses get up and running in no time.
  
  
• Ask for help: Don’t be afraid to ask for help. Let’s say that one again – don’t be afraid to ask for help. Starting a business can be stressful and challenging. But, if you remain persistent and have conviction, you can do it. Be open to asking people you know for help when you need it. Whether it’s a mentor, professional, friend or family member, there are people who want to see you succeed!