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BUSINESS STARTUP ESSENTIALS
DIETITIAN BUSINESS
STARTUP TOOLKIT
© 2015 RD Entrepreneurs Academy
1
IN THIS TRAINING VIDEO…
Legal Business Structures
Business Accounting 101
Protecting your Business Part One: Assets & Time
Protecting Your Business Part Two: Content Development
Business Startup Essentials
2
BUSINESS STRUCTURES
© 2015 RD Entrepreneurs Academy
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SOLE PROPRIETORSHIP
Simple and most common
No distinction between you and the business
You are personally liable for any debts the business accrues
Determine Your Business Structure l Business Startup Essentials
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SOLE PROP FORMATION
No formal action required
You may already be a Sole Proprietor
Obtain necessary licenses & permits
Real name vs trade name
Determine Your Business Structure l Business Startup Essentials
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ADVANTAGES
Ease of formation
Inexpensive
“Test out” ideas
Determine Your Business Structure l Business Startup Essentials
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DISADVANTAGES
No personal liability protection
Determine Your Business Structure l Business Startup Essentials
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LIMITED LIABILITY COMPANY (LLC)
Liability protection of a corporation & the tax efficiencies of a sole prop
Owners of a LLC are “members” or “managers”
Most states, LLC can be single member owned
Determine Your Business Structure l Business Startup Essentials
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LLC FORMATION
Choose a business name
File Articles of Organization
Create an Operating Agreement
Determine Your Business Structure l Business Startup Essentials
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ADVANTAGES
Limited Liability
Personal assets exempt
Don’t co-mingle personal & business assets
Determine Your Business Structure l Business Startup Essentials
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DISADVANTAGES
Costs
Paperwork
Concrete business model
Determine Your Business Structure l Business Startup Essentials
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PARTNERSHIP
Single business with 2 or more owners
Each partner contributes either money, property or a specific skill set
Legal partnership agreements
Determine Your Business Structure l Business Startup Essentials
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ADVANTAGES
Shared financial commitment
Shared work load
Complementary skills
Determine Your Business Structure l Business Startup Essentials
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DISADVANTAGES
Shared liability
Disagreements
Shared profits
Determine Your Business Structure l Business Startup Essentials
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CORPORATION (C CORP)
C Corp
Independent legal entity
More complex, costly fees
Determine Your Business Structure l Business Startup Essentials
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C CORP FORMATION
Choose business name
File Articles of Incorporation
Recommendation: Seek out the advice of a lawyer
Determine Your Business Structure l Business Startup Essentials
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ADVANTAGE: VERY LIMITED LIABILITY
DISADVANTAGE: TIME & MONEY
Determine Your Business Structure l Business Startup Essentials
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S CORPORATION (S CORP)
Created through IRS tax election
To avoid double taxation
Profits/losses pass through to personal tax return
LLC can elect to file as S Corp
Determine Your Business Structure l Business Startup Essentials
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WHAT BUSINESS STRUCTURE IS RIGHT FOR YOU AND YOUR
BUSINESS?
Determine Your Business Structure l Business Startup Essentials
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THINGS TO CONSIDER
Costs
Risk assessment
Level of professionalism
Determine Your Business Structure l Business Startup Essentials
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BUSINESS ACCOUNTING
101© 2015 RD Entrepreneurs Academy
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YOUR BUSINESS STRUCTURE IS A BIG DETERMINING FACTOR IN YOUR
TAXES!
Business Accounting 101 l Business Startup Essentials
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SOLE PROP TAXES
Easiest in terms of tax prep
Report business income/loss on personal tax form
Tax professionals may still be beneficial (even if it’s the easiest)
Business Accounting 101 l Business Startup Essentials
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LLC TAXES
LLC is not a separate tax entity
LLC income passes through to personal income tax
Some states tax LLC
Business Accounting 101 l Business Startup Essentials
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OTHER CONSIDERATIONS
Must pay federal, state & sometimes local taxes
Medicaid
Social Security
Quarterly taxes
Business Accounting 101 l Business Startup Essentials
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PARTNERSHIP TAXES
Tax ID or EIN (employer ID number)
File an annual information return
Partners are not employees; W-2 forms are not issued
Must furnish Schedule K-1
Business Accounting 101 l Business Startup Essentials
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C CORP TAXES
Required to pay federal, state & local taxes
Must obtain EIN
Create a separate tax paying entity
Corp pay taxes on business profits
Owners pay taxes on their share of the profits
Business Accounting 101 l Business Startup Essentials
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S CORP TAXES
Profits/losses pass through to personal tax return
Only the owners are taxed, not the corp
LLC’c can request S Corp filing status
Business Accounting 101 l Business Startup Essentials
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DEDUCTIBLE EXPENSE: BUSINESS RELATED EXPENSES THAT
DECREASE YOUR TAXABLE INCOME
Business Accounting 101 l Business Startup Essentials
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DEDUCTIBLE EXPENSES
Startup Costs
Office supplies
Computer
Mileage
Costs specific for your business
Business Accounting 101 l Business Startup Essentials
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DEDUCTIBLE EXPENSES
Always purchase separately
Must be reasonable
More “expensive” versions of an item may be suspect
Business Accounting 101 l Business Startup Essentials
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ACCOUNTING SOFTWARE/TRACKING
Have a system in place
Excel or Numbers
Google Spreadsheets
Quicken or Quickbooks
Business Accounting 101 l Business Startup Essentials
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PROTECTING YOUR BUSINESS
PART 1: ASSETS & TIME
© 2015 RD Entrepreneurs Academy
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CONTRACT: LEGALLY BINDING “PROMISE”
Protecting Your Business Part 1: Assets & Time l Business Startup Essentials
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ENFORCEABLE CONTRACTS
1. Get it in writing
2. Keep it simple
3. Deal with the right person
4. Spell out ALL of the details
Protecting Your Business Part 1: Assets & Time l Business Startup Essentials
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5. Specify payment obligations
6. Agree on circumstances that terminate the contract
7. Keep it confidential
8. Specify ownership
Protecting Your Business Part 1: Assets & Time l Business Startup Essentials
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INSURANCE
Professional liability
Error’s & Omissions
Accident protection
Protecting Your Business Part 1: Assets & Time l Business Startup Essentials
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PROFESSIONAL LIABILITY
Covers task related to routine or normal professional duties related to your profession
HPSO, MARSH & ProLiability
Check to ensure your unique business is covered
Protecting Your Business Part 1: Assets & Time l Business Startup Essentials
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ERROR’S & OMISSIONS
Form of liability insurance
Protects professional advice & service providing individuals
Defends against negligence claims
Protecting Your Business Part 1: Assets & Time l Business Startup Essentials
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ACCIDENT PROTECTION
Consultants who conduct off-site work
Off-site or home based space where you see clients
Check with your current insurance companies
Protecting Your Business Part 1: Assets & Time l Business Startup Essentials
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PROTECTING YOUR BUSINESS
PART 2: CONTENT
DEVELOPMENT© 2015 RD Entrepreneurs Academy
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COPYRIGHTS
Denoted by the symbol ©
Begin as soon as you create the work
Not required to pay for a copyright
No need to register the copyright in order to use ©
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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Pursuing legal action requires registration
If you are employed to create the work, you do not own the copyright
If you purchase a creation, you do not own the copyright
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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YOU CAN COPYRIGHT
Written words (blog posts, books, articles)
Pictures or graphics
Computer programs
Informational products
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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YOU CAN NOT COPYRIGHT
Ideas
Titles, short phrases or slogans
List of ingredients
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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TRADEMARKS
Denoted by the symbol ™
A ™ prevents using the same or similar name/logo/slogan
The ™ symbol is enough for protection, no registration required
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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If someone uses your ™, it strengthens your case if it is registered
A business (in non-competing markets), may still be able to use a ™ name/slogan
Rule of thumb-“Who was there 1st?”
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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YOU CAN TRADEMARK
Names (business, product, service names); your personal name can not be trademarked
Logos
Slogans
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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SYMBOLS
™ Unregistered Trademark
SM Unregistered Service Mark
® Registered Trade/Service Mark
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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COSTS
Copyrights ~$35-45
US Copyright Office
Trademark ~$275-375
US Patent & Trademark Office
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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INFRINGEMENT
Infringement is rampant in the digital age
Social media, blogs, video sites
How to avoid infringement?
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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SOCIAL MEDIA
Linking to articles or pictures
vs
Taking credit for articles or images
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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BLOGGING
What’s acceptable?
Sharing a link
Add your own commentary, take or flair
What’s not acceptable?
A complete article or recipe (even if credit is given)
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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DIGITAL
Music
Just because a song is popular doesn’t mean you can use it
Royalty Free or personal creation
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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DIGITAL
Images
Google images are typically owned by someone else
Royalty free or your personal creation
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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TYPICALLY…YOU WILL BE GIVEN NOTICE (CEASE &
DESIST) BEFORE LEGAL ACTION IS TAKEN
Protecting Your Business Part 2: Content Development l Business Startup Essentials
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WRAP UP
© 2015 RD Entrepreneurs Academy
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KEY POINTS
Consider costs, risks & concreteness of business idea when choosing a business structure
When in doubt, consult the professionals
Fully understand the details of any tasks/assignment (and get those details in writing!)
Protect your intellectual property simply with use of the correct symbols
Business Startup Essentials
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Decision: What business structure do you think will
work for your business startup?
Determine Your Business Structure l Business Startup Essentials
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NEXT UPBusiness Breakdown
© 2015 RD Entrepreneurs Academy
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NEXT UPBusiness Breakdown
© 2015 RD Entrepreneurs Academy
Overview: Consulting/Private Practice/Digital & Media
Business & Marketing Plans
Payment Considerations
How to develop your product and services
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