How to Start a Small Business as a Freelancer in Katy, Texas
So, you're a freelancer and you're ready to take the plunge and turn your freelancing work into a small business. Congratulations! This is a huge step — one that comes with a lot of important decisions. But don't worry, we're here to help. In this article, we'll outline some of the key steps you need to take to get your small business up and running in Katy, Texas.
Establish a Business Plan
One of the first things you need to do when starting a small business is create a business plan. This document will outline your business goals, strategies, and how you plan on achieving them. Having a business plan is crucial to the success of any small business, so be sure to put in the time and effort to make yours as strong as possible.
Contemplate Returning to School
While it may seem like an unnecessary expense, returning to school and earning a degree can actually be very beneficial for small business owners. A higher education will give you the skills and knowledge you need to run your business effectively. In addition, holding a degree can make you more attractive to potential clients and investors.
Form Your Legal Structure
Once you've got your business up and running, you'll need to decide what legal structure it will take. For many small businesses, forming an S corporation or LLC is the best option.
Structuring your small business as an S corp offers a variety of advantages. When you elect to become an S corp, the business income is reported on the founders' 1040 tax return and subject to individual taxation. This means that some of the profits may be saved due to lower business tax rates on shareholder salaries versus corporate earnings. Additionally, a Texas S corp filing provides potential benefits for those who qualify for more relaxed self-employment taxes and deductions, such as health insurance and retirement savings plans. Further, an S corp may structure membership so that some investors are exempt from payroll taxes or income from dividends.
You should also strongly consider forming an LLC in Texas. One of the primary advantages of an LLC is limited liability protection. Because LLCs are legally separate from their owners, the members’ personal assets generally can't be used to satisfy the debts and other liabilities of the LLCs. Furthermore, this setup provides asset protection in case of a lawsuit against the business or other unforeseen legal issues. Additionally, when structured correctly, operating an LLC allows for certain tax benefits. Running an LLC as a pass-through entity offers business owners extra tax deductions along with saving money by only paying taxes on their own personal income instead of filing corporate taxes. An LLC also has flexible management options, allowing members to choose how their venture will operate according to federal and state corporate law without having to worry about onerous formalities such as annual meetings or record keeping like corporations have to do.
Focus on Networking
As a small business owner, networking is key. Getting involved with local groups and organizations, including the Katy Area Chamber of Commerce, can help you meet potential clients and partners. In addition, attending events and trade shows can also be beneficial. The more people you meet, the better chances you have of finding new customers for your business.
Market Your Business
Finally, once you've got everything up and running, it's time to start marketing your business. There are many different ways to market a small business, so be sure to explore all of your options. From online advertising to print ads, there are plenty of ways to get the word out about your company. And remember, word-of-mouth is still one of the best forms of marketing, so be sure to tell all your friends and family about your new venture!
Starting a small business is a big undertaking — but it's also an exciting one! By following these simple steps, you'll be well on your way to getting your business up and running in no time. And before you know it, you'll be on your way to achieving all your entrepreneurial dreams!Photo: Unsplash