One thing I can't stand doing is wasting money. It physically hurts me.
So like most new business owners can attest to, year 1 is FULL of "learning opportunities" aka a really nice way of saying f*#! up's...
After reading a few blogs, and "how to's" I thought I was totally ready to sign up for all the licenses I needed to make my business official. So first I signed up for a sole proprietorship, then an LLC, then cancelled the LLC, then add in about 5 more steps in between. Sounds like just a waste of time right? Wrong! Each of those steps takes time and they also cost money. Each license...you guessed it, COSTS MONEY.
The best thing that I (Matt convinced me) decided to do was schedule an official meeting with out accountant to go through a start up procedure STEP-BY-STEP. For the cost of all my original "oopsies" I was able to sit down with someone who knew what they were doing, researched everything properly, and had been through this before.
Our accountant Carlos, Matt and I sat down for about 2 hours and mapped out how to fix some of the things that I managed to smudge up, and what my next steps were. We re-established the official LLC, decided which account was going to be the "official" business credit card and outlined when we would be able to start that with a zero balance. That way every transaction on that account going forward was JUST business expenses, nothing else. No co mingling funds. Everything had to be official since small business are FOUR TIMES MORE LIKELY TO BE AUDITED. So better safe than sorry!
EIN, start the official bank account, checks, sales tax license, and about 20 more boxes to check off. It seems SO overwhelming when you look at it as an entire list but taking it step by step, it only took about a day to complete.
In the grand scheme of things, a day isn't too bad not to waste anymore money. Learn from my mistakes! Do the research, and if you're not sure about a step, or how to proceed, reach out to people that do! Better to take the time to do things right than have to redo them. Like we say in the woodworking world, measure twice, cut once.