If you spend your days working in the office and your evenings working on your own projects, you will likely one day dream of turning this evening project into your full time job. The idea of turning a side hustle such as freelancing, blogging or selling items on Etsy into a full time business might seem complicated and risky, and you wouldn’t be too wrong. However it is possible and can be the difference between you doing something you hate or doing something you love. If you fancy trying to take the leap, take a read of these tips.
1. Pick a business name
The first port of call when you plan on making your hobby into a business is finding an available name which is also very catchy. It can be harder than you think to come up with a name which has not been used before, which is why it is crucial that you do your research. You can use name generation tools online if you are completely stuck, and then you can check this against all registered companies in the country.
Make sure your name is catchy and relevant to the field you work in. For example HelloWorld is a marketing business who offer a range of services to their clients, the name is fun, catchy and easy to remember. This is the type of name which will stick in your mind and one which you need to come up with.
2. Apply for business structure
It is important to apply for a business structure even if you only work for yourself, because without it there is nothing to distinguish between you and your business. It will mean that if your business ever comes under the thumb of a lawsuit, it is you personally who will need to pay for the compensation, not your business.
3. Register your name
Once you do choose a good name which you feel fits your business well,you need to get it registered with the government. This is a very important step because it will allow you to legally trade under this name and will stop anyone else from taking your business name further down the line.
4. Apply for permits
This will depend on the industry you work within, however in general you will need to apply for a few different permits when you open up a new business. For example you could be applying for a general business licence, health department permit, professional licenses and much more. Make sure you do your research to see which permits your business requires.
5. Get a Tax ID number
Tax is one of the most crucial things you need to sort out when you begin operating as a sole individual or as a business owner. Register for a Tax ID and this will act as your business’ social security number, which will allow you to keep on top of your taxes throughout the year.
6. Understanding taxes
Tax can be a complicated part of business, and it is often a part which goes a little bit neglected when people don’t understand the process. If you want to run a successful business and avoid getting into trouble over small mistakes in tur taxes, you need to make sure you understand how it all works and exactly what you need to do. Try and talk with someone from the tax department so that they can explain exactly what you need to do and how you go about filing for a tax return. This will give you the peace of mind that you need.