So many of us have dreamt the “American Dream” of having our own business. Maybe we bake those cookies that everyone loves, maybe we decorate our home like a pro or we have a special way with children and one day someone says those famous words that resonate in our spirit “You know you could make a lot of money doing this”. So the vision is formed in our mind, occupies our thoughts and most importantly goes from our head to our heart.
Now, that the vision is formed the planning begins or shall I say should begin. The bible states “Where there is no vision the people perish...Write the vision and make it plan...” Unfortunately, so many small business owners don’t take the time, effort, and training it takes to create a legitimate business entity. We get so excited about the vision that we don’t write down anything and then we get upset when we get audited or inspected and fined. Then we blame others when it was actually our own negligence.
We were under the false belief that it really wasn’t that important to write a business plan. Who is going to read it anyway? Many of us do not even take the time to register our business with state and federal entities. We don’t take the time to research the best business structure
for the type of business idea we envisioned. We just start taking orders for those cookies, baking and making money!
Don’t get me wrong I love making money, but the price of temporary financial gain amounts to mere pennies compared to long term tax evasion pain.
By taking the easy road of the “Sole Proprietor”, were you aware that if you do not follow the proper and legal steps to set up your business you are a sole proprietor by default? Just like if you do not have a “Will” the state has one for you, if you do not create your own business structure “The IRS” has one for you. Notice what the spelling of these two words together, The IRS=THEIRS. All that had work to earn that money from your business, down the drain because you did not take the time to properly prepare the plan for the “Vision”.
Proper
Planning
The Truth Behind Being a Sole Proprietor
Written By: Gayle Warren