3 Mistakes to Avoid When Opening Your New Business
There is nothing more exciting than opening your own business. As business owners for over 20 years, we understand just how much work is involved in the start up process. Many small business owners begin their new venture with a tremendous amount of experience in their industry. Landscapers know how to landscape. Chefs know how to cook. However, when it comes to the other essential parts of running a business many owners simply “don’t know what they don’t know”. Avoid making the following three critical mistakes and you will be on your way to ensuring success in your new venture.
Mistake #1– Failure to Hire a Team of Professionals
The quickest way to get into trouble as a new small business owner, is to not hire a team of professionals to navigate the increasingly complex world of running a business with employees.
A high-quality attorney, CPA and payroll company may cost a little more up front, but will save you thousands in the long run. An experienced attorney can advise you on the proper way to organize your business to minimize your liability. A seasoned CPA can help you set-up a financial system which will enable you to accurately gauge your progress. The right payroll service will ensure that your payroll taxes get paid in a timely manner so that you will avoid crippling tax penalties and issues.
Mistake #2- Registering Incorrectly with the DOR/DUA
Once you make the decision to open a new business, it is vital to make sure you have registered correctly with the Massachusetts Department of Revenue and Mass Division of Unemployment Assistance. Failing to register or registering incorrectly will result in significant headaches for the business owner. Ask your CPA or Payroll Service if they will do the registrations on your behalf.
Mistake #3- Late tax payments/filings
The American Payroll Association reported recently that as many as one in three businesses have paid a penalty and interest for a late filing or payment. Penalties and interest are steep for late payments and owners can face serious consequences for collecting withholding taxes and not remitting them in a timely manner. A reputable payroll service will not only guarantee their tax filing service, but will also show you how to verify tax deposits.