How to set up your hair business properly
If you’re reading this, chances are you know the benefits of owning your own hair business. But many people don’t fully understand how to set up a business properly. Here are a few tips to have your hair buisness properly set up .
1. Create a business entity
Business owners need to decide how they want their business entity to be structured. There are many different options, I recommend you to use legal zoom or your states website. One that is often overlooked is the LLC or Limited Liability Company. The LLC offers protection for your personal assets and allows you to keep your company’s finances separate from your personal finances. The first thing people usually think about when forming a new business is what type of legal entity it should be formed under. An LLC (Limited Liability Company) offers liability protection for its members while maintaining flexibility in management structure and taxation. An excellent option for startups or small businesses.
2. Get an EIN Number
When starting a business, you will need to get an EIN number. This will protect your personal identity and keep you from being fined by the IRS. This is the Federal Tax Identification Number for your company. It’s also called Employer Identification Number and it is used to identify your organization with the IRS for tax purposes. You can apply online or by mail, but once you have that number everything becomes much easier!
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3. Get a virtual address
A virtual address is a great way for entrepreneurs to protect their privacy. This is because the company that provides the services does not have your home address, which can be a safety concern. It also allows you to provide an office space with a receptionist and mail delivery service without having to worry about renting or buying one. A virtual office might seem like it would cost more money, but in some cases it actually costs less than renting an actual physical space. Virtual offices are available nationwide as well as internationally, so they’re perfect for those who travel often!
The benefits of a virtual office include:
-Provides security by not providing home address
-Allows entrepreneur to work from anywhere
-Can save on rent/mortgage payments by
4. Get a business number
It’s important to have a business phone number because it can be used for marketing purposes or if someone needs to contact you. Your company name is the first thing people will see when they call, so make sure it looks professional! If you can only afford free, google voice is a great option.
In conclusion, you may have heard that you need to create a business entity and get an EIN number. And if you’re like me, this is probably the last thing on your mind as it relates to starting a new venture. But now I know better, I set up my company as an LLC with all of those things in order before I even started doing any marketing or sales activity. Doing so has saved me from headaches later down the line when someone asks about how we operate and what our financials look like (and they will!). My advice? Put these steps into action early and save yourself some trouble!
What questions do you still have about setting up your brand properly for success? Let us help! By signing up for the bundles to bills mini work shop that the wig coach is offering you will be able to learn everything you need to know about creating a profitable hair business.