Despite Covid, despite Ukraine, despite everything else that is going on in the world right now, nonetheless, there are still a lot of start-up businesses in San Francisco and throughout the Bay Area. That is a good sign because it means that there is a lot of confidence about the road ahead.
If you have been working for another company for years and taking home the pay that you get, rather than the sort of pay that the bosses get, it may well be that you believe that you can do just as good a job as your company, if not better, working for yourself. Start your own business. Why not? Your bosses did it, and if they can, so can you.
However, taking that first leap can be very scary. Yes, you know that business inside out. After all, you have been working in it for years. But telling your boss that you are leaving at the end of the month and realizing that there will be no paycheck at the end of the next one is scary enough indeed. Or, at least, there will be no paycheck unless you get yourself started and taking on customers pretty fast.
So, there are many things that you have to do in a short space of time. OK, some of them you can plan ahead before you leave your job, but actually taking on customers is the main thing that you have got your eye on. San Francisco even has a “small business portal” to help you get your bearings when starting a San Francisco small business.
Taxes? Why Worry About Taxes?
So why ever worry about taxes? After all, you are not going to have to pay taxes until you start to make a profit.
However, if you want to pay as little in the way of tax as possible (you do, don’t you?) then starting your business in the right way is vital. As a CPA for start-ups in the Bay Area, at Safe Harbor we can point you in the right direction. Should you be a partnership? An LLC? An S Corp? A C corp?
Answer: we don’t know! As a CPA for start-ups in the Bay Area, we need to meet you and discuss the way that you are going to run your new business. The type of business that it is. Who will own and run it (they may be different people). And so on. Then we will be able to advise you on the best way to start off so that you don’t finish up paying inordinate amounts of tax further down the line. It makes sense, doesn’t it?
So, before you start off, come and talk to us as a CPA for start-ups in the Bay Area, and let’s work out the best way forward.