Gather All The Business Pieces

You cannot manifest the complete visual (vision) of a puzzle if you are missing some of the pieces. Even though you may be able to get the gist of the image, the defect would be glaring. So before you embark to execute your grandiose venture, be sure to take inventory of all the necessary components. Let’s examine how to form a legitimate business entity and break the process into simple steps:

  • 360 Business Plan – A great business coach will pull your vision out and help you develop a focus. They will gracefully weave your value system into your business model. Celurius has a process that  transform concepts into executable milestones. Entrepreneurs benefit from feeding their ideas thru the gauntlet of market data and SWOT analysis. SWOT is an acronym for strengths, weaknesses, opportunities, and threats.

  • Legal Entity – Consider the obligations and benefits of various jurisdictions when selecting your business structure. Consult an attorney or CPA regarding legal and tax implications. Companies such as incfile make it easy to review and complete LLC filing and registration. Managing ongoing compliance is made simple with incfile’s platform. Be sure to obtain an Employer Identification Number (EIN).

  • Virtual Office – There are two parts to creating a virtual office. First is the business address. Second is a toll free virtual phone number. Put the two together and walla — you have a virtual office!

  • Business Bank Account – Choose a community oriented lender like a CDFI or online bank that has a history that is free of predatory practices. Make sure it is a good fit and even better relationship!

Disclosure: This article contains affiliate links that provide a monetary benefit to Celurius.

Credentials For Your Business

As we discuss how to form a legitimate business entity, be sure to research and comply with any state, local, or federal requisites. For example, a food truck may require a special city permit, a trucking business needs DOT authority and a bond, while a law firm relies on partners who have passed the Bar exam.

Cross all t’s and dot those i’s; that’s how to form a legitimate business entity. Check the items below:

  1. Business License and Permits – Most organizations will need a combination of state, local, and federal authorizations depending on the business type.
  2. Surety Bonds – Typically pertains to a three-way contract involving some government application. The bond covers some of the obligee’s exposure.
  3. Business Insurance – Provides limited protections based on the policy purchased. Find reputable agents and compare coverage.
  4. Business Registrations – These could be mandatory or recommended within your industry.

Do not cut corners when it comes to compliance. Figure out the costs and then set a budget with a timetable. Stay organized. Use a notepad on your laptop, phone, or computer. The Small Business Administration (SBA) has a guide that you may find useful.

Clean Up Your Personal Affairs

We’ve talked about some technical aspects about how to form a legitimate business entity, however the most essential component is — you. Your financial, emotional, mental, and spiritual health will greatly affect company health. Make sure you maintain healthy relationships with solid boundaries. Don’t allow people to siphon your energy away.

Periodically meditate and gain clarity. Be consistent and maintain a state of peace. Grow in self-awareness. Be honest about your needs and areas where you need help. Remember that your strength is also a source of weakness. Appreciate the things that are good. Channel your dissatisfaction into fuel for wealth building. Be diligent about eliminating toxic foods and substances from your temple (your body). Take care of you. Take care of the home front.

 

Budget

Do not be intimidated. Half of the battle is paying attention to your income and your expenses. The other half is spending patterns that are disciplined and intentional.

Here’s how to create a budget:

  • Add up your sources of income for the month.

  • Categorize all your expenses (ex: restaurants, fuel, rent, entertainment).

  • Get the 1 month total for each category and divide it by the net income for the month. This will give you the percentage of your income spent on that category for the month. (ex: Income = $4000 Expense: Fuel = $250;  250/4000 = .0625 ; multiply the decimal by 100 to get the percentage of fuel costs out of the monthly budget 6.25%). Do this for each category.

  • Look for areas where you may be overspending. Set a maximum amount that you will spend eating out. Don’t buy clothes impulsively. Save up for a shopping trip and find sales. Cut the cable and get Netflix. Chop those expenses down and get total bills to less than 50% of your net income.

  • Funnel 20% of your income into savings for emergency funds and future investments. Put 10% to the side for enjoyment. Set the last 20% to the side to launch your operation now that you see how to form a legitimate business entity.

Good money management is crucial if you are serious about creating generational wealth!

Consumer Credit

Debt can pile up for a host of reasons. It could be a tragic event such as an accident resulting in a hospitalization. College is a necessity for some professions, yet the tuition may be astronomical. Financial mismanagement may be a contributing factor in some cases. Regardless of the reason, collections and missed payments listed on your credit report damage your economic position in several ways:

  1. The cost of credit products increases via fees and interest rates.
  2. Insurance rates are higher and utilities require deposits.
  3. Vendors tend to require down payments or co-signers.
  4. You are locked out of financing large purchases such as a home.

Celurius encourages all entrepreneurs to fix & optimize their consumer credit so that we can roll those habits into additional debt capital strategies. Click here for a reputable credit repair service.

Individual credit is marketed to fuel consumer spending. The problem is that most consumer purchases don’t increase your income or equity position. It typically increases your bills and . This pattern is common but you do not have to encumber your money this way.

Disclosure: This article contains affiliate links that provide a monetary benefit to Celurius.

Flip The Script

Now that you are equipped with the basics of how to form a legitimate business entity, develop a plan to access debt capital. Not to subsidize spending, but as leverage to purchase assets. Go file your business entity, complete registrations, purchase insurance and then build wealth!

Buy income generators such as dividend paying stocks, rental real estate, lease land to hemp growers – etcetera etcetera. Shake the brainwashing and mediocrity of check-to-check thinking. Spend some time crafting a plan that changes your life for the better. Send us a message to schedule a free consultation. Also, swing by our resource page for a list of helpful vendors. Live well smile

Disclosure: This article contains affiliate links that provide a monetary benefit to Celurius.