“ An essential roadmap for any woman considering entrepreneurship” SARA GOULD, Former President & CEO, Ms Foundation for Women With Downloadable FORMS 5TH EDITION The Women’s Small Business Start-Up Kit A Step-by-Step Legal Guide Everything women entrepreneurs need to know about: • business plans and marketing • taxes and finances • special opportunities for women-owned businesses Peri Pakroo, J.D The all-in-one resource for women entrepreneurs This Book Comes With Lots of FREE Online Resources Nolo’s award-winning website has a page dedicated just to this book Here you can: KEEP UP TO DATE When there are important changes to the information in this book, we’ll post updates And that’s not all Nolo.com contains thousands of articles on everyday legal and business issues, plus GET DISCOUNTS ON NOLO PRODUCTS Get a plain-English law discounts on hundreds of books, forms, and dictionary, all written by software Nolo experts and available READ BLOGS Get the latest info from Nolo for free You’ll also find authors’ blogs more useful books, LISTEN TO PODCASTS Listen to authors discuss timely issues on topics that interest you WATCH VIDEOS Get a quick introduction to a software, online apps, downloadable forms, plus a lawyer directory legal topic with our short videos With Downloadable FORMS Get forms and more at LAW for ALL www.nolo.com/back-of-book/WBIZ.html The Trusted Name (but don’t take our word for it) “ In Nolo you can trust.” THE NEW YORK TIMES “ Nolo is always there in a jam as the nation’s premier publisher of do-it-yourself legal books.” NEWSWEEK “ Nolo publications…guide people simply through the how, when, where and why of the law.” THE WASHINGTON POST “ [Nolo’s]…material is developed by experienced attorneys who have a knack for making complicated material accessible.” LIBRARY JOURNAL “ When it comes to self-help legal stuff, nobody does a better job than Nolo…” USA TODAY “ The most prominent U.S publisher of self-help legal aids.” TIME MAGAZINE “ Nolo is a pioneer in both consumer and business self-help books and software.” LOS ANGELES TIMES Small Business Experts Love the Book “It takes a brave woman to start, build, and run a business For all those women out there who keep saying to themselves, ‘I think I can, I think I can!,’ with this excellent book, now they can!” —Nell Merlino, Founder and CEO, Count Me In for Women’s Economic Independence, and Author, Stepping Out of Line: Lessons for Women Who Want It Their Way in Life, in Love, and at Work “More and more women are making business ownership their career choice Peri Pakroo has created a superb resource for any woman entrepreneur to get her business off the ground successfully.” —Connie Evans, CEO of the Association of Enterprise Opportunity, Public Member of the U.S Delegation to the United Nations 54th Session of the Commission on the Status of Women “This no-nonsense guide is an essential road map for any woman considering entrepreneurship It’s packed with how-to information and real-life examples that will help save significant time and money in getting a venture started Highly recommended.” —Sara Gould, former President and CEO, Ms Foundation for Women “What a great, practical and readable resource! This is not your typical ‘motivational’ business start-up book, but a detailed guide to all the steps of actually getting started, including specific tips and resources for women entrepreneurs Peri’s book clearly details all the nuts and bolts of starting a business so often lacking in how-to books A must-read before you launch.” —Lindsey Johnson, former National Director, SBA Office of Women’s Business Ownership “A good read all around, Peri provides a practical guide that is useful and helpful for women starting and growing their businesses—love the real-life examples, too! This is a great book!” —Wendy K Baumann, President, The Wisconsin Women’s Business Initiative Corporation “This is a detailed resource for business Instead of reading it like a regular book, go through the table of contents and find the areas where you need the most help Read through and then take notes of what you remembered in that chapter You’ll be feeling well-versed and confident in business in no time!” —Lisa Fetterman, Co-Founder of Nomiku, Kickstarter-funded cookware company “The Women’s Small Business Start-Up Kit is a must-read for any woman thinking about starting a business As a Director of a Women’s Business Center for nearly 20 years, this is the first book I’ve read which provides a realistic road map on how to make it happen In spite of the remarkable accomplishments that self-employed women have made, let’s face it, women continue to be the primary nurturers who hold American families together, a fact which makes starting and growing a successful woman-owned business fraught with challenges and sweet with its rewards.” —Agnes Noonan, Executive Director, Women’s Economic Self-Sufficiency Team (WESST) “Don’t even think about starting a business without reading this book Approachable, easy to understand and totally straightforward, Peri has done a service to all future entrepreneurs by giving solid advice to set you up for sustainable success.” —Amy Swift Crosby, Founder, SMARTY, A Resource for Entrepreneurial Women “This book on small business start-ups is certainly a valuable tool that will assist women in making sound and sustainable decisions when beginning a new business venture Peri’s many years in the business consulting and training trenches gives her advice and information a high value of credibility She has enormous experience and insight to share, and this book and kit is a must read for the aspiring entrepreneur.” —Patricia Harris, Executive Director & CEO, The Edge Connection, Women’s Business Center at Kennesaw State University, Coles College of Business 5th Edition The Women’s Small Business Start-Up Kit A Step-by-Step Legal Guide Peri Pakroo, J.D LAW for ALL FIFTH EDITION Editor Production Proofreading Index Printing MAY 2018 MARCIA STEWART SUSAN PUTNEY ROBERT WELLS VICTORIA BAKER BANG PRINTING Names: Pakroo, Peri, author Title: The women’s small business start-up kit : a step-by-step legal guide / Peri Pakroo, J.D Description: 5th edition | Berkeley, CA : Nolo, [2018] | Includes index Identifiers: LCCN 2017053690 (print) | LCCN 2017056727 (ebook) | ISBN 9781413325249 (ebook) | ISBN 9781413325232 (pbk.) Subjects: LCSH: Businesswomen | Small business Law and legislation | Small business Handbooks, manuals, etc Classification: LCC HD6053 (ebook) | LCC HD6053 P35 2018 (print) | DDC 658.1/1082 dc23 LC record available at https://lccn.loc.gov/2017053690 This book covers only United States law, unless it specifically states otherwise Copyright © 2010, 2012, 2014, 2016, and 2018 by Nolo All rights reserved The NOLO trademark is registered in the U.S. Patent and Trademark Office Printed in the U.S.A No part of this publication may be reproduced, stored in a retrieval system, or trans mitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without prior written permission Reproduction prohibitions not apply to the forms contained in this product when reproduced for personal use Please note We believe accurate, plain-English legal information should help you solve many of your own legal problems But this text is not a substitute for personalized advice from a knowledgeable lawyer If you want the help of a trained professional—and we’ll always point out situations in which we think that’s a good idea—consult an attorney licensed to practice in your state Dedication For Jila and Jasper Acknowledgments In addition to the original Acknowledgments for the first edition (see below), I have a few more thanks to give In the few years since this book was originally published in 2010, a number of people have entered my life who have helped me in important ways with their support, friendship, creativity, and just all-around awesomeness Sage Harrington, thank you for everything: child care, research help, podcast jingles, tiny dogs, playing and singing, and just being you You have been a lifeline through some very tough times; thank you Matt Corson, thank you for your awesome songs and for pushing me to learn new things It’s a joy to be in your band and I’m glad you can out-boss me (sometimes) Chris Burnett, thank you for roping me into your podcasting kingdom; it has been a super-fun ride! Huge thanks to everyone involved with Pyragraph.com, especially Eva Avenue, Adam Rubinstein, David Dabney, and Turtle O’Toole I’m incredibly proud of what we’ve accomplished, and all of it was under insane circumstances Immeasurable thanks to the many doctors and nurses who have helped my girl and my family during a very intense medical experience over the past year-plus: Dr Mark Unverzagt, Dr Michael Grimley, Kathleen Novak, Dr David Margolis, Lynette Anderson, Dr John Bucuvalas, Jennifer Willoughby, and Dr Lucille McLoughlin, among many others Debbie Weissman, you have also been an absolute lifesaver with your love, friendship, and support; thank you Endless love and thanks to my entire family, especially Turtle, Jila, and Jasper Your love keeps me going Acknowledgments for the 1st Edition My previous books were all written in my child-free days, so when I started this one I fretted mightily about how on earth I would get it done with a three-year-old daughter in the picture Then, a couple months into the project, I was simultaneously thrilled and terrified to learn I had another baby on the way, due three months before my final deadline How could I possibly make this work? My salvation came in the form of many usual suspects, plus some new ones My husband, Turtle O’Toole, put in nothing short of heroic efforts to care for our family while I was up to my eyeballs in the book, then pregnancy, then a newborn Thanks aren’t enough, but thank you, Turtle Thanks also to my dad for flying out here (twice) to help out, and to my mom and sister for relinquishing him Jila, my amazing girl, thank you for believing me when I told you month after month I’d eventually be done with the book And Jasper, you brought magic with you when you were born Somehow all the cuddling and nursing and baby smiles gave me energy and sustained me while finishing the book, instead of the opposite (Your sleeping at night was pretty great too.) I feel incredibly lucky to have had Marcia Stewart as my editor Besides doing an amazing job of actually editing the book, she gave me the perfect balance of encouragement, deadline pressure, and empathy to help me stay not only sane, but productive Thank you so much Marcia Thanks also to all the editorial, production, marketing and applications development folks who make Nolo books so outstanding Stan Jacobsen was a huge help in providing research and statistics Terri Hearsh made the layout clean and the content easy to understand— no small thing with all this information And big thanks to Andrea Burnett, Jackie Thompson, Wendy Jacobson, Helena Brantley, Colleen McHugh, Sigrid Metson, Jennifer Balaco, Simone Odom, and Michelle McKenzie for all their efforts to get the word out about the book Finally, thanks again to Jake Warner for roping me into being an author many years ago I’m really glad and grateful you did Thanks to all the amazing women who let me interview them and ask nosy questions about their businesses for this book Shout outs go to Lauren Bacon, Kim Blueher, Elissa Breitbard, Jennifer Cantrell, Isabel Walcott Draves, Emily Esterson, Nicola Freegard, Leila Johnson, Lisa Kurtz, Emira Mears, Rebecca Pearcy, Sabrina Habib Williams, and Kyle Zimmerman—the information you shared is incredibly valuable; thank you Thanks also to Clare Zurawski, Agnes Noonan, and the rest of the team at WESST in Albuquerque I so enjoy teaching at and working with your awesome organization I couldn’t have kept all the balls in the air this last year without the help of David Dabney and Damian Taggart Thank you for everything; I’m so glad to have you on my extended team Finally, big love to Zz Pakroo, Parisha Pakroo, Stacey Stickler, Laura Taylor, Carolyn Nelson, Inga Muscio, and Samantha CampostriniMedeiros Also to Debbie Weissman and Kayte Blanke, our extended family here in New Mexico, and Emily Cooney for all your help and wonderful spirit Thanks also to Bea Perez for all you for us And my fellow Moist Towelettes, Jeff Rutherford, Brent Templeton, Scott Batherson, and my main man, Turtle Thanks for keeping the joy and good stuff flowing 516 | THE WOMEN’S SMALL BUSINESS START-UP KIT marketing plan, 293 market research, 64 microlenders, 97 NAICS codes, 74 name searches, 233–234, 237–238 National Association of Women Business Owners, 4, 326 National Women’s Business Owners Corporation, 76 Nolo.com Lawyer Directory, 482 Nolo.com legal research section, 487 Office of Women’s Business Ownership, 76 online sales tax, 440 organization, 191 OSHA (workplace safety), 470 Partnership Agreement Template, 160 rights of employees, poster for, 471 scam identification, 39 SCORE program, 109 search engine optimization, 323 securities laws, 170, 177 simplified option for home office deduction, 203 Small Business Administration, 75 Small Business Development Centers, 76 social lending networks, 98 social media, 307 state agencies, finding, 245–246, 472 state legal research, 487–488 state secretary of state office, finding, 227 state unemployment taxes, 471 surveys (SurveyMonkey), 60 trademark database, 238 updates for this book, xxi wage and hours laws, 470 website building, 353 WomanOwned.com, 76 Women’s Business Centers, 96 Women’s Business Enterprise National Council, 76 women’s business organizations, workers’ compensation insurance, 470 WOSB (Women-Owned Small Business) program, 72 Online sales See E-commerce (online sales) Open-source platforms, 329 Operating income, 136 Operations, as system, 34 operations manual, 448–449 Optimism and entrepreneurship, 11 Organizing and organization for home businesses, 191 resources for, 191 as skill needed, 12 See also Scheduling; Systems, development and use of; Time OSHA (Occupational Safety & Health Administration), 470 Overhead as fixed costs, 123–125, 380–381 high, break-even point analysis and, 133 keeping it low, 80, 125, 381 OWBO (Office of Women’s Business Ownership), 4, 76 P Partnerships, 154–160 agency authority of partners, 155, 157, 159 agreements, default law in lieu of written, 158 agreements disallowed for, 159 agreements, written, 158–160, 161–162 books and records, right to inspect, 159 certified as “women-owned,” 154 compared to other legal structures, 145–146 corporate tax treatment, opting for, 166, 425 defined, 154 EIN (employer identification number) required for, 229 federal income tax and, 423–424 fictitious business name registration, 232–233 fiduciary duty and, 159 INDEX | 517 fringe benefit deductibility and, 174 general partnerships, 155 IRS informational return required (Form 1065), 156–157, 166, 423, 426 limited liability partnerships (LLPs), 156, 227 and local registration requirements, 148, 154 and malpractice lawsuits, 156 Partnership Agreement Template, 160 as pass-through entity, 156–157, 423 pass-through tax deduction and, 421 personal liability for business debts, 155–156, 157–158, 159 personal names used as name of, 232–233 resources on, 160 Sample Partnership Agreement, 161–162 self-employment taxes and, 424 silent, 92 state income taxes, 430–431 See also Bureaucratic tasks; Legal structure of business; Limited partnerships Passion, pursuit of, 12–13, 38, 40, 41 Pass-through taxation, 148, 156–157, 166, 167 tax deduction for, 421 Patents, 348 Payroll, software for management of, 463–464 Payroll taxes See Employment taxes Performing arts programs, advertising in, 292 Permits See Licenses and permits Personal and lifestyle considerations for entrepreneurship overview, 8–10 children, 31–32, 33 co-owners, careful choice of, 15–16 friends, working with, 16 intuition, 38 networking as necessity, 19–20 passion, pursuit of, 12–13, 38, 40, 41 realities of entrepreneurship, 10–13, 21, 80 risk tolerance, 18 skills needed, honest evaluation of, 13–15, 34–35 spouse or relatives, working with, 17–18 See also Children; Co-owners; Family; Flexibility; Friends and friendships; Idea for business; Networking; Organizing and organization; Scheduling; Skills needed; Spouses; Systems; Time; Work/ life balance Personal funds expenses occasionally made from, 374 separate business account required, 358–359 Personal guarantees and LLC losses, tax treatment of, 168 for loans, 92 personal liability and, 164, 173 Personal liability for business debts and choice of legal structure for business, 152–153, 157–158 general partnerships and, 155–156, 157–158, 159 LLC exceptions allowing, 164–165 sole proprietorships and, 147, 152–153 Pessimism and entrepreneurship, 11 Pinterest, 303 Plug-ins, 300 Plunkett Research, 130 Point of sales (POS) systems, 401–402 Police department permits, 244 Press releases overview, 272–273 contact information for point person, 278 followup to, 274 for online newswires, 326 Sample Press Release, 276–277 sending, 274 writing, 275, 278–280 Pricing business plan adjustments to, 129 formula- vs market-based approaches to, 131–132 518 | THE WOMEN’S SMALL BUSINESS START-UP KIT government contracting preferences, 70 as main competitive advantage, 116 of products, 129–130 of services, 130–132 standard markup rates, 129–130 for target market (niche), 128, 132 Procurement Technical Assistance Centers (PTACs), 76 Products business plan description of, 112–113 categories of, and gross profit percentage, 127–128 as “local”, claims to, 257 return and exchange policies, 263 samples to public, 286 samples to the media, 274 seller’s permit required for sale of, 240–242 See also Inventory; Pricing; Sales tax Professional organizations directory listings of, 252, 326 fees for, 282 getting started, 19–20 joining, as marketing strategy, 282 networking and, 19–20, 268, 282 Professionals See Licensed professionals Profit/loss (P & L) forecast, 120, 135–137 Worksheet for, 136 Profit/loss (P & L) statement, 380–384 Sample Profit/Loss Statement, 383–384 Profit margin (gross profit percentage), 127–128 Profits finance system improving chances of, 363 gross vs net, 125–126, 382 pass-through taxation of, 148, 156–157, 166, 167 retained earnings, 393 Project management software, 402–403 Property taxes, for business, 433 Proprietary platforms, 329 Public health, inspection requirements, 244 Publicity, 253 Public relations, 252 Puerto Rico, and low-profit limited liability companies (L3Cs), 180 Pyramid schemes, 39 Q QuickBooks (software), 397–399, 402 Quicken (software), 397 R Race/ethnicity, 8(a) program for socially and economically disadvantaged businesses, 69, 72–73, 75 Radio advertising on, 292 sponsoring public radio, 284 Real estate agents/brokers, for space rental, 223 Receipts defined, 361 for fictitious business name publication, 235 multiple, for single transaction, 362 See also Record keeping Record keeping overview as step #1 of finance system, 364, 369–370 distinguishing taxable from nontaxable sales, 371 expenditure receipts, 371–372 income receipts, 370–371 marking receipts as entered into system, 378 multiple receipts related to single transaction, 372 resource for, 370 for sales taxes, 441 See also Bookkeeping software Reddit, 325 Registered limited liability partnerships (RLLPs), 156 Rejection, fear of, 11 Rental homes, home businesses in, 195, 196 Renter’s insurance policies, 204–205 INDEX | 519 Repairs and maintenance, home business deduction and, 202 Resale certificates, 436, 440 Retained earnings, 393 Retainer for lawyers, 486 Retirement plans, 473 Revised Uniform Partnership Act (RUPA), 158 Risk addition of employees and increase of, 458 analysis of, and choice of legal structure, 153, 157–158 home businesses and, 203–204 personal tolerance for, 18 See also Insurance; Limited personal liability; Personal liability RLLPs (registered limited liability partnerships), 156 RSS feed, 300, 325 Rural communities, HUBZone government procurement program and, 73–74 exceptions and exemptions, 241, 437 final user, 435, 436 local, 241 for more than one tax district, 441 nexus requirement (physical presence in state) for, 437–438, 439 online sales and, 241, 439–440 professional advice on, need for, 437, 442 record keeping for, 441 resource on, 440 seller’s permit requirements, 240–242, 434, 441 on services, 435 tangible vs nontangible goods, 435 tracking, filing, and paying, 441–442 use taxes when sales tax unpaid, 440–441 See also Sales, nontaxable SAP CRM (software), 404–405 SBA See Small Business Administration SBDCs See Small Business Development Centers Scams resources to check on, 39 S warning signs of, 39 Sage 50 software (formerly Peachtree), 397 work-at-home, 39 Salaries Scheduling for independent contractors, 130–131 appointment scheduling software, start-up, for owner, 80–81 403–404 Salesforce (software), 404 of marketing outreach efforts, 265–266 Sales, nontaxable for nurturing personal relationships, bookkeeping to account for, vs taxable 30–31 sales, 242, 371 for time off for yourself, 28, 30 bookkeeping to categorize types of, 378 See also Time resale certificate allowing, 436, 440 SCORE program (SBA), 64, 109, 293, 396 seller’s permit required for, 241, 434 S corporations services as usually tax-exempt, 242, 437 allocation of profits and losses, 168 states without general sales taxes, 240–241 compared to LLCs, 167–168, 176 tax-exempt sales, 241, 437 limited personal liability in, 176 See also Sales taxes losses, tax treatment of, 168 Sales taxes pass-through taxation of, 167, 174, 176 overview, 435, 437 pass-through tax deduction for, 421 bookkeeping to account for taxable vs rules for meetings and recordkeeping, 168 tax-exempt sales, 242, 371, 441 shareholder limitations of, 167 520 | THE WOMEN’S SMALL BUSINESS START-UP KIT See also Bureaucratic tasks; Legal structure of business Search engine optimization (SEO), 321–323, 332 resources for, 323 Search Engine Watch, 323 Securities and Exchange Commission, 170, 177 Securities laws corporations and, 171–172, 177 LLCs and, 170 Self-employment See Financial transition to self-employment; Growth of business; Independent contractors; Personal and lifestyle considerations for entrepreneurship; Size/type of business; Start ups Self-employment taxes for business-owner spouses, 424 estimating and paying quarterly, 427–429 LLCs and, 426–427 partners and, 424 sole proprietorships and, 150, 422 tax deductible portion of, 422 tax rate, 422 Services and service-oriented businesses billable hours and, 123 business plan description of, 112–113 gross profit and, 126 low start-up costs for, 18 pricing for, 130–132 receipts, record keeping of, 369 sales tax not usually due on sales of services, 242 seller’s permit and sales tax collection required if any product sales made from, 241–242 variable costs and, 124 Silent partnerships, 92 Size/type of business children and choice of, 31–32 flexibility as goal and choice of, 25, 26, 27 freelancer-firm model, 27 growth as goal and choice of, 25–26, 32, 36 independent contractors/microbusinesses as choice for, 25–26, 32, 36 as work/life balance choice, 23–24, 25–27, 36 See also Growth of business; Independent contractors; Legal structure of business Skills needed business plan description of skills possessed, 117–118 business plan process as education in, 106–107 filling gaps in See Co-owners; Staff hiring and managing honest assessment of, 13–15, 34–35 organization skills, 12 Small Business Administration (SBA) overview, business plan assistance, 109 loan guarantee programs, 97 market research assistance, 64 website, 75 See also Government contracting opportunities for women; Women’s Business Centers Small Business Development Centers (SBDCs), 64, 76, 109, 247, 293, 396 Small business, self-certification as, 69, 72, 73, 74, 75 Social lending networks, 98 Socially and economically disadvantaged businesses, 8(a) program for, 69, 72–73, 75 Socially conscious business forms, 178–180 Social media overview, 99–100, 313–317 audience as consideration, 314 community conventions and customs, as consideration, 315 copyright issues and, 353–354 creativity, importance of, 317 crowdfunding, 99–101, 299 INDEX | 521 customer service enhanced with, 264, 317 e-commerce, 319–320 defined, 301 employee relationship management hiring staff or consultants to run, 312, 320 (ERM), 464 industry-specific sites as consideration, for financial projections, 127 314–315 Google Analytics (website traffic), 324 interns and, 312 integrating with bookkeeping software, job openings announced via, 460 399, 401–402, 404 lack of transparency, and negative word networking for advice on, 402 of mouth, 256 “off-the-shelf” databases, 397, 405, 406, old-school websites distinguished from, 464 313 plug-ins, 300 and positive word of mouth, 251, 303 point of sales (POS) systems, 401–402 reputation of business, monitoring of, 316 print materials, development of, 285 review sites as consideration, 314–315 project management, 402–403 “social bookmarking” sites, 325 RSS feed, 300, 325 staff activities on, caution on employer spreadsheets, 127, 400–401, 463–467 monitoring, 459–460 website building, 310, 329–330 strategy for, 314 See also Bookkeeping software; Databases tips for developing presence on, 312 Sole proprietorships, 146–154 traffic building with, 324–325 bookkeeping and, 149 trends, staying current with, 315 compared to other legal structures, See also Blogs and blogging 145–146 Social Security insurance defined as default legal status, 147 employer’s portion of, 471 EIN (employer identification number) portion of self-employment tax, 422 optional for, 229 withholding from paycheck, 470–471 federal income taxes, 419–422 Social Security numbers fictitious business name registration, 232 independent contractors using, 474 $400 threshold for, 421, 422, 430 sole proprietors using, 229, 474 fringe benefit deductibility and, 174 Software applications local regulations on, 147, 148 overview, 397 losses and, 148–149 appointment scheduling, 403–404 as pass-through entity, 148–149 blogs, 309–310 pass-through tax deduction and, 421 business planning, 108, 110 personal liability for business debts, 147, cloud apps as alternative to, 398 152–153 CMS (content management system), 299, personal name in name of, 232 310, 330, 331, 341 self-employment taxes, 150, 422 custom apps for e-business, 330 single-member LLCs treated as, 425 customer relationship management Social Security number used for, 229 (CRM), 404–405 spouse working in, 150–151, 424 customized databases, 405–406, 464 and staff, 147 customized website programming, state income taxes, 430 352–353 522 | THE WOMEN’S SMALL BUSINESS START-UP KIT See also Bureaucratic tasks; Legal working with, 16, 17–18 structure of business See also Children; Family; Unmarried Space for business, 184–223 couples overview, 184–185 Spreadsheets affordability of, and home businesses, list of business planning downloads 188–189 available, 494 buying a space, 213, 220 software applications for, 127, 400–401, location of, 184 463–467 See also Home businesses; Zoning laws Staff hiring and managing, 444–490 Space for business, renting your own space overview, 444–446, 452–453 overview, 211 authority and accountability of staff, 454 agent for, 223 business plan description of, 117 Americans with Disability Act co-owners, clarity of tasks and compliance, 221 responsibilities of, 16, 455 build-outs, responsibility for, 212, 221, customer service training and 222 knowledge, 262 checklist of considerations for, 221–222 delegation of authority, 454 expansion capacity, 217 friendships of boss and employee, finding a space, 212–214 458–459 insurance for, 223 handbook for staff, 457–458, 462 lease, negotiation of, 218, 220–222 by independent contractors (freelancelocation for, 214–215 firm model), 126 parking as issue, 214 job descriptions, use of, 117, 447, 454, “per square foot” as annual figure, 211 457, 460, 475 resource for, 222 job descriptions, writing, 455–456 signs for business, 218, 221, 222 labor cost, as fixed vs variable, 124–125, transition from home business to, 381 216–217 liability risks and, 458 Space for business, sharing space one-woman operations and, 445 overview, 206 payroll, 463–464 business incubators, 208 policies for, 457–458 collectively leasing space, 210–211 resources on, 456, 458, 462–463 co-working spaces and executive suites, reviews of employees, 457 206–208 social media activities of staff, caution on subleasing from another business, 208–210 monitoring, 459–460 Spam, 301 software applications for, 463–464 Spouses systems and, 36, 446–451 child care by, 88, 189–190 See also Customer service; conflict and, 17 Discrimination; Employees; Employees, “co-sole proprietorships,” 150–151, 424 legal requirements; Employment taxes; divorce, 151 Independent contractors “husband-wife sole proprietorships” Staff hiring and managing, hiring (spouse volunteering), 150 credit checks on applicants, 460 INDEX | 523 don’t rush hiring, 461 educational requirements for job, 460 family, hiring of, 475–476 finding applicants, 460 help wanted ads, writing, 460 interviewing applicants, 460 job descriptions, writing, 455–456 job positions, creating, 453–454 job profiles, 462 lists of tasks for systems development and identification of needs for, 448, 449, 455 orientation of new employees, 461–462 pay rates, determining, 456–457 references, checking, 460 single key employee, 454 trial run of new employees, 461 Start ups See Bureaucratic tasks; Business plan; Consultants for starting a business; E-business; Financial management; Financial transition to self-employment; Growth of business; Idea for business; Legal structure of business; Marketing; Personal and lifestyle considerations for entrepreneurship; Size/type of business; Space for business; Staff hiring and managing; Start-up costs; Systems; Taxes Start-up costs overview, 78–79 amount to reserve, 79 estimate for, in financial projections, 120, 137–138 types of, 137 undercapitalization, 79 See also Financial transition to selfemployment; Funding sources State governments and agencies filing organizational documents with, 227–228 licensing requirements, 244–245 procurement programs of, 70 secretaries of state offices, finding, 246 start-up information, 245–246 trademark registries of, 238 websites, finding, 246 See also Fictitious business names; State laws; State taxes State health Facts, 87 State laws attorney agreements in writing, 486 benefit corporations, 179 child care home businesses, 195 and choice of legal structure for business, 181 corporate filing, 176 corporation fees, 170 customer service practices, 265 health insurance, 87 independent contractor vs employee status, 466, 468 LLC fees, 170 LLC member prohibitions, 156, 163 low-profit limited liability companies (L3Cs), 180 online sales tax laws, 439–440 Revised Uniform Partnership Act (RUPA) version, 158 Uniform Partnership Act (UPA) version, 158 Statements, defined, 361 State taxes accountant handling, advantages of, 409 estimating and paying quarterly, 430, 431 forms, ordering, 433 income taxes, 430–431, 471 unemployment taxes, 471 use taxes, 440–441 withholding from paycheck, 471 See also Sales tax StumbleUpon, 325 Subcontinent Asian Americans, and 8(a) program certification, 73 Success defined on your own terms planning process and clarity on, 23–24 traditional vs individual ideas of, work/life balance as dependent on, 21, 23–24 524 | THE WOMEN’S SMALL BUSINESS START-UP KIT SugarCRM (software), 404–405 Supply chain management, as system, 34 SurveyMonkey, 60 Surveys and questionnaires, 58–60, 63 System for Award Management (SAM) database, 74 Systems, development and use of overview, 32, 34–35 benefits of, 446–448 and “business owner” role of entrepreneur, 36 definition of, 32, 36, 446 growth of business and need for, 447–448, 449, 451 identification of staff needs and, 449 lists of tasks involved in your business, 448, 449, 455 microbusinesses and need for, 32, 451 operations manual emerging from, 448–449 staff hiring and managing and, 36, 446–451 types of systems, 34 work/life balance and, 28–29, 32, 34–35 writing up step-by-step instructions for, 448–449 See also Financial management system T Target customers See Customers Tax audits and independent contractor information, gathering of, 474 sales tax and, 435, 437 sole proprietors not filing Schedule C and time window for, 421 written contract with independent contractors as evidence in, 475 Tax Cuts and Jobs Act (2017) and accountants, need for, 421 and Affordable Care Act, 85–86 corporate tax rate changes, 175 state challenges to, 84–85, 409 tax deduction for pass-through entities, 421 updates on, xxi, 409 Tax deductions child care for personal returns, 90 date of, in accrual vs cash accounting method, 366–367 fringe benefits, 174, 473 for home businesses, normal expenses, 196 for “home office” See Home businesses, tax deduction for for pass-through entities, 421 self-employment tax portion, 422 Taxes overview, 408–410 accountant handling, advantages of, 409, 428–429, 489 capital gains tax, 197 cash vs accrual method of accounting and, 368–369 estimating and paying quarterly, 427–429, 430, 431 and family members, hiring, 476 filing or reporting requirement may not mean taxes owed, 422–423 finance systems as easing stress of, 363, 408 loss of limited liability for overdue, 164–165, 173 and profit, lack of, 408–409 property taxes for business, 433 types of, generally, 410–411 See also Corporations, taxation of; Employment taxes; Federal income taxes; LLCs; Local taxes; Partnerships; Pass-through taxation; Property taxes; Sales taxes; Self-employment taxes; Sole proprietorships; State taxes; Tax audits; Tax Cuts and Jobs Act (2017); Tax deductions Tax professionals determining level of professional needed, 489–490 INDEX | 525 enrolled agents (EAs), 490 fees for, 490 finding and hiring, 490 tax preparers, 490 written agreements with, 490 See also Accountants; Consultants for starting a business; Lawyers Technology, niche and, 54 See also Software applications Telephone, customer service and, 262 Television advertising on, 292 and branding, 256 public, sponsoring, 284 Time children and, 32 for finding the right professional advisers, 478–479 home businesses and savings of, 185 for making child care arrangements, 88, 89 for nurturing personal relationships, 30–31 requirements for start-ups, reality of, 21, 30 for website development, 331–332 for yourself, 28, 30 for yourself, home businesses and, 192 See also Scheduling Trade journals, as secondary market research source, 57–58 Trademarks overview, 236–237 domain name choice and conflicts of, 346 fictitious business names and consideration of, 234, 238 resource for, 238 searches for, 237–238 Trade names See Fictitious business names Trade organizations, and networking/ marketing, 252, 282, 326 Trade shows, 61, 286 Transparency and benefit corporations, 179 brands and branding and, 256–257 Traveling for business events, child care and, 269 TripAdvisor, 314–315, 316 Tumblr, 309 Twitter, 314, 325 U Unemployment taxes, 471 Uniform Partnership Act (UPA), 158 Unmarried couples as partnership, 150 in sole proprietorship–employee relationship, 150 See also Spouses Urban communities, HUBZone government procurement program and, 73–74 USCIS Form I-9 (Employment Eligibility Verification), 471 U.S Citizenship and Immigration Services (USCIS), Form, I–9, 471 U.S Department of Health & Human Services, 87 U.S Department of Labor, 470, 476 U.S Equal Employment Opportunity Commission, 469 Use taxes, 440–441 U.S Federal Contractor Registration database, 74 U.S Patent and Trademark Office, 238 U.S Women’s Chamber of Commerce, 72 V Values, branding and expression of core, 256–257 Variable costs, 123–125 Venture capital (VC) firms, 98–99 Veterans, service-disabled, 74 Viral marketing, 253 Voicemail, home businesses and, 191 526 | THE WOMEN’S SMALL BUSINESS START-UP KIT CMS (content management system), 299, 310, 330, 331, 341 WBENC (Women’s Business Enterprise custom apps for, 330, 352–353 National Council), 4, 72, 76 as essential requirement for business, Web 2.0, 301 270, 301 Web developers intellectual property law and See overview, 333 Copyright content help from, 329, 340 maintenance by owners or consultants, and copyright of websites, 337, 348, 350, 330, 332, 342 351–353 maintenance tasks, 331 defined, 301 open-source platforms, 310, 329–330 and development platform, 329–330 proprietary platforms, 329 domain name registered by, 347 search engine optimization (SEO), fees of, 332 321–323, 332 finding, 333–335 training the site managers, 341, 342 maintenance of site by, 330, 332, 342 See also Copyright; Domain names; opening store within existing e-commerce E-commerce, traffic building; Web site as alternative to, 344–346 developers; Web hosting overselling you on features, 302 Websites, advance planning proposals from, 335–336 overview, 327 skills required by, 334–335 agreement on participants, 327–328 training the site managers/administrators, cash flow, 333 341, 342 costs of, 331–332 and upgrades of platform, 329–330, 332 examine technology options, 329–330 website builder services as alternative to, outline of site content, 328–329 342–344 research other sites, 328 written contract with, 336–337, 348, 350 schedule and timing, 332–333 See also Websites, building Websites, building Web hosting overview, 337 budgeting for, 331 autoplay of video, avoiding, 339 defined, 346 content creation, 324, 340–341 fees for, 331, 348 content entered by owner, 341 finding, 347–348 DIY (do-it-yourself) options, 342–344 resources for, 347–348 graphic design (“look and feel”), 339–340 timing of setting up, 341 images, sources for, 341, 354 and website builder services (templateinformation architecture/content based), 342–343 mapping, 338–339 See also Domain names; Websites opening store within existing Websites e-commerce site, 344–346 advertising on, 290 programmer building the site, 341 changes and updates to site by owners, refinement and revisiting steps in, 337 330, 331–332 resource for, 353 changes to content, copyright issues and, site maps, 338 352 W INDEX | 527 strategy and goals, clarifying, 337–338 templates, 338 testing the site (quality assurance, QA), 341–342 user interface (UI) diagrams, 338–339 video and animation, use of, 340–341 website builder services, 342–344 Withholding from paychecks backup withholding for independent contractors, 474 for employees, 470–471 WOB (women-owned business), 71 WomanOwned.com, 4, 76 Women-owned business (WOB), 71 Women-owned businesses certification as, for government contracts, 67, 69, 72, 73, 74, 75, 154 experiences of women, and need for this book, 2–3 growth of, as economic sector, Women-Owned Small Business (WOSB) Federal Contract Program, 69, 70, 71–72, 73, 75 Women’s Business Centers (WBCs) overview, as business plan resource, 108 as financial management resource, 396 finding, as funding source, 91, 94–96 as government contract resource, 76 as marketing plan resource, 293 as market research resource, 64 for permit and license questions, 247 resource for finding, 96 Women’s Business Enterprise National Council (WBENC), 4, 72, 76 Women’s business organizations, WordPress, 309–310, 329–330 Wordtracker, 323 Workers’ compensation insurance, 470 for home business employees, 205 Work/life balance overview, 20–23 boundaries to protect your private life, 29 healthy eating and exercise, 29 healthy work habits, development of, 28–30 as ongoing habit, 21 and size/type of business, choice of, 23–24, 25–27, 36 substance abuse issues, 29 and success, personal definition of, 23–25 and systems, development of, 28–29, 32, 34–35 time for personal relationships, 30–31 time for yourself, 28, 30 time requirements, realism about, 21, 30 See also Personal and lifestyle considerations “Works for hire,” 349–351 WOSBs See Women-Owned Small Business (WOSB) Federal Contract Program Y Yahoo!, 323 Yahoo! Local, 317–318 Yelp, 303, 316 YouTube, 313, 317 Z Zoning laws overview, 217–218, 244–245 appeals of decisions, 219 approvals, process for, 219, 220, 243–244 business signs, 218 conditional use permits, 219, 243 determine rules prior to signing lease, 218, 220 finding the agency or office for, 220 “grandfathered” businesses, 220 home businesses and, 192–195 informational material for the public, 194 parking as issue, 214, 218, 219 prior tenant’s activity no guarantee of current legality, 219–220 roadblocks to approvals, 219 variances, 219, 243 l Online Legal Forms Nolo offers a large library of legal solutions and forms, created by Nolo’s in-house legal staff These reliable documents can be prepared in minutes Create a Document • Incorporation Incorporate your business in any state • LLC Formations Gain asset protection and pass-through tax status in any state • Wills Nolo has helped people make over million wills Is it time to make or revise yours? • Living Trust (avoid probate) Plan now to save your family the cost, delays, and hassle of probate • Trademark Protect the name of your business or product • Provisional Patent Preserve your rights under patent law and claim “patent pending” status Download a Legal Form Nolo.com has hundreds of top quality legal forms available for download—bills of sale, promissory notes, nondisclosure agreements, LLC operating agreements, corporate minutes, commercial lease and sublease, motor vehicle bill of sale, consignment agreements and many, many more Review Your Documents Many lawyers in Nolo’s consumer-friendly lawyer directory will review Nolo documents for a very reasonable fee Check their detailed profiles at Nolo.com/lawyers Nolo’s Bestselling Books Legal Guide for Starting & Running a Small Business $39.99 Legal Forms for Starting & Running a Small Business $29.99 Tax Savvy for Small Business $29.99 The Small Business Start-Up Kit A Step-by-Step Legal Guide $29.99 Form Your Own Limited Liability Company $44.99 Every Nolo title is available in print and for download at Nolo.com Save 15% off your next order Register your Nolo purchase, and we’ll send you a coupon for 15% off your next Nolo.com order! 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Look it up in America’s most up-to-date source for definitions of legal terms, free at nolo.com Lawyer Directory Nolo’s consumer-friendly lawyer directory provides in-depth profiles of lawyers all over America You’ll find all the information you need to choose the right lawyer WBIZ5 ... specializing in small business and intellectual property issues She is the author of the top-selling Nolo titles The Women’s Small Business Start- Up Kit, The Small Business Start- Up Kit (national and... between 4 | THE WOMEN’S SMALL BUSINESS START- UP KIT Women’s Business Organizations As women-owned businesses have proliferated, so have women’s business organizations These groups provide resources... 30 Mixing Business and Kids .31 Developing Business Systems 32 The Role of Business Owner 35 8 | THE WOMEN’S SMALL BUSINESS START- UP KIT P op quiz: