Start & Run a Graphic Design Business. Michael Huggins

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СКАЧАТЬ This is so they can also keep track of the money you are paying in taxes to the state in which you have employees. The Employment Development Department (EDD) is the office that will issue these numbers to you. Check with the IRS and the EDD for all the information you will need in order to file your employee federal and state taxes. Don’t forget to check with your local city business office for any additional taxes you may need to pay.

      4. Open a Business Bank Account

      When you register your company name you’ll need a business bank account. This presents a level of professionalism in your business, but it also keeps a division between your personal and business life. You should always keep your business and personal check-writing separate. This way you’ll be able to receive and make payments from your company instead of from your personal account. It will help make bookkeeping a lot easier. If you choose to incorporate, a business account is a must.

      Most banks require that you have an EIN or BN before you can open a commercial checking account. See your local bank regarding the types of accounts and services it has available for small businesses like yours. Each one has varying service fees and cost advantages.

      5. Hire an Accountant

      There will be a little more to your business bookkeeping than you may think. It’s not quite as simple as balancing your checkbook. There will be specific things you will need to do and to set up to get your business up and running smoothly. Taxes are one of those areas that can be greatly affected by the way you set up the books.

      My advice is to hire an accountant before you get started. Talk to the accountant about tax procedures, company structure, record keeping, accounting software, and any other accounting-related questions you may have. The accountant can also be a resource to you when it comes to planning the type of business structure you should choose. Your accountant will most likely ask you questions about your vision for the company and how big you want it to be so that he or she can help you make the right decisions up-front before your business gets going. The accountant can also help you set up your books in advance to prepare for your growth.

      Your accountant can also help you find a competent bookkeeper to help you with the monthly bookkeeping if you choose to hire one. Although some accountants may provide this service to you, it’s advisable to have bookkeeping done independently by someone else subject to review by your accountant.

      6. Insurance

      Insurance is a must when you own your own business. Yes, it can be expensive, but you will adjust your design fees accordingly to cover the costs. Starting your own business carries with it a lot of risks, and unfortunately you’re the one taking them. Whenever possible reduce the risks in your business with sufficient insurance coverage.

      If you will be working on your own, it’s important to remember that you are the business. You need to protect your business’s biggest asset — you. In the event you become sick or disabled, if you are not insured properly, your entire business could be wiped out. It only makes good sense to protect yourself from the great unknown of the future.

      Another reason you need insurance is because you work in the communications industry. Your clients could be small businesses or multimillion-dollar corporations. Each one of these companies uses your design and communication material to get their message out to the world. As a result, your work could be visible in local, national, international, and maybe even in a global marketplace. If something you create causes financial damage to a client because of a mistake or oversight, your client could hold you responsible. To fully protect you and your business let’s look at some of the kinds of coverage you should consider.

      6.1 Health insurance

      Health insurance covers long-term sickness, hospital care, or medication and treatment. There are many types of questions you’ll need to consider. Things such as, how much insurance will you need? Do you need coverage for dependants? How much will it cost? Who is the best provider to purchase it from? All of these questions depend on your specific needs and current circumstances so it’s a good idea to sit down with an insurance broker and discuss your unique situation. Discuss your options in detail before making any decisions.

      6.2 Disability insurance

      Disability insurance covers you against accidents that can prevent you from working in the future. I recommend trying to get this as early as possible. It’s not an easy thing to get for a solo entrepreneur and in some cases it can be cost prohibitive. If you are able to get disability insurance, and you can budget for it, it’s a good idea. If nothing more than for the peace of mind it will bring while you are building your business. It provides you with a safety net in the event that something unforeseen should happen.

      Many insurance companies have stringent rules and requirements for their applicants and not all people are eligible. The sooner you can get disability insurance the better. If you wait for a while before applying, your circumstances may change and your ability to get this type of insurance might be severely affected. Talk to your insurance broker regarding all the products and services they offer. They may even be able to offer you an incentive or price reduction if you use them for both your home and office insurance policies.

      You can also inquire with local or national professional design associations to see if they offer members access to these kinds of insurance. It may be well worth it to become a member just to have access to this type of insurance.

      6.3 Business insurance

      You’ll need general business coverage insurance to protect your business and equipment from fire or theft. Although some homeowner policies will cover some of these items up to a certain amount, it’s a good thing to check with an insurance broker to ensure you have enough insurance to cover your business. In the event something happens to your office or equipment, you could suffer a set back if you have to pay out of your pocket to get back up and running at full speed.

      Don’t overlook getting liability insurance, too. If you have clients or business people coming to your home or office, you’ll need liability coverage. This covers you in the event someone is injured at your office. Or if damage is done to the property you are renting. You’ll need to discuss your specific needs and requirements with your broker depending on your current situation.

      6.4 Errors and omissions insurance

      Another kind of insurance you need is errors and omissions insurance. This insurance covers you in the event you are ever sued by a client for the work you have done for him or her. In the design business, because you are dealing with many different types of communications media, various content, and revisions, there is a high probability that from time to time you will have errors in your work. In some extreme cases these errors can seriously damage your client’s reputation or affect his or her business, and the client may seek compensation from your company. Because the potential costs could run into the thousands (even millions) of dollars, depending on the size and reach of the project you create, you could be in a very tough position if you are not insured.

      To protect yourself against this, talk to your insurance broker. The cost of this insurance is based on the type of work you do and the impact it could have on your client. Your insurance broker will want to know some details about the type of work you do and why exactly you want this type of insurance, so be prepared to answer a few questions. They may even want to know who will be working on the projects in your place of business, the scope of the work you do, and maybe even СКАЧАТЬ