There are times when entrepreneurs can DIY (do it yourself) and times when they need to spend the money on expert support. Clients often come to me when starting their small business or non-profit and want to know what they can do themselves and what they need to do with the support of an expert. We take the time to talk about all these items with our clients as well as the things that they must have done to get up and running. It is an exciting time, and we encourage you to be involved in the process.
I always recommend clients visit their Small Business Development Center. In Northeast Florida that includes a great non-profit department too. The SBDC at UNF has consultants who can guide you through the set-up process and connect you with the experts to assist as well. Their services are free to new and existing businesses, and they have a surprisingly large selection of services. https://www.unf.edu/sbdc/
When you are setting up your business you need to have an accurate submission with the IRS for your business type and your EIN. This is something that many entrepreneurs do themselves; however, we recommend having an expert handle this process. It is the foundation of your business and if not done correctly it can be expensive and time consuming to try to correct. You need to make the correct selection for the tax type of your organization and that may or may not be the same as your business entity set up. For non-profit organizations Form 1023 must be completed correctly and submitted on-line. If this is not done correctly you may get denied your status.
When selecting your software there are many options available. We recommend at least talking with an expert about those options before making a choice. Once you have made the choice that is right for you, the download and set can be completed in house. In recognition of this, many bookkeepers offer limited advising on the software and setup. The consulting time is an area where you can save some start up money.
Each state has requirements for sales-tax, income tax and other filings. You need to meet with an expert to make sure you have considered all these items that apply to you. Many non-profit founders are surprised to learn that sales tax still applies to many of their transactions, for example. Once you know what your state requirements are, you can set up your accounts on your own. While these are also very important filings, it is generally easier to work with the state in the event something needs to be changed.
We hear from many entrepreneurs that they used a service to set up and need assistance having corrections made. Investigate any organization that offers low-cost set up service and talk to your SBDC representative about them. You won’t get the same support from an all-in-one service as you will with a local attorney and CPA. All-in-one services are set up to make money with cookie cutter forms and often don’t take your circumstances into account at all.
The bottom line is that there are plenty of things you can set up yourself but when dealing with legal issues and the IRS we recommend having local expert support. You will get more for your money on those services and local support is more likely to take your specific circumstances into consideration. Local experts also have access to other experts you may find useful.
