“I Quit, Now What?” Steps to Take to Transition From Being an Employee to Being Your Own Boss
COVID-19 has changed our lives in ways that we could not have imagined. Many people realized that they could work from home during the pandemic. If you transitioned to telecommuting, you may have also realized that you could be your own boss. Opportunities for transitioning from being an employee to being your own boss are increasing. The coronavirus has slowed or shut some businesses down, but it has also created unique niches that people are scrambling to fill.
If you already quit and are ready to be your own boss, or you are on the verge of quitting, these five steps can help protect you and your investment in a new startup.
- Decide on a Business Structure
There are several types of business structures that you can choose for your new startup. Corporations provide the highest level of protection from personal liability, but they are the most complicated and expensive business structure to set up and maintain.
A sole proprietorship is the easiest and least expensive business structure you can create, but all your personal assets could be at risk. You might benefit from an LLC, which combines many of the pros of a corporation with a sole proprietorship, but without the cost and headache.
- Set Up Separate Accounts for Your Business
Regardless of the business structure you choose for your company, set up separate accounts for your business. Do not commingle your personal funds and business funds. It can make tax time a headache, but it could also create personal liability for you.
- Develop a Business Plan
A business plan is a roadmap for your future. It helps you identify your goals, but it also creates a process for achieving the goals. Your business plan does not need to be formal or very detailed. It just needs to cover the main points, such as your operating structure, delivery systems, products, services, funding, and expansion plans.
- Learn Every Aspect of Your Business
An entrepreneur knows how to do everything to operate the business. Startups do not generally have the funding to hire a group of professionals to help in setting up and operating the business.
Therefore, you need to take time to learn about important positions that you may need to fill for now, such as bookkeeper, accountant, tax preparer, secretary, shipping clerk, supply chain manager, and quality control. However, there is one role that you do not want to assume. The role of legal counsel.
- Discuss Your Plans with a Florida Business Law Attorney
Many entrepreneurs who transition to being their own boss overlook the need for sound legal advice. When you build your startup on a sound legal foundation, you can avoid many of the problems and headaches that other entrepreneurs encounter.
Even if you intend to be a one-person show working from your home, it can be beneficial to consult with a business lawyer. For example, will you have clients or customers meet you at your home? If so, you need to take steps to ensure that you have adequate insurance to cover a premises liability lawsuit.
A business attorney understands all of the issues involved in being your own boss. An attorney can help you develop a checklist of legal and other matters that must be addressed to protect yourself and your new business. He or she can also provide additional tips and guidance for beginning your own business.
Contact Our Coral Springs Business Law Attorney for More Information
Attorney Matthew Fornaro provides legal advice and representation to companies and business owners. If you have questions about setting up a new company or business, we can help. Call 954-324-3651 or contact us online to schedule an appointment to discuss this new, exciting chapter in your life.