We are used to working for someone else, so when it’s time to be your own boss and start our own RT business, we don’t always know all the intricacies. The inevitability is that we must proactively act to ensure we protect ourselves in the lawsuit happy world. Here are some tips to help you think about what’s next with your new business idea(s). To mention a few:
If you want to stay as is, then you can operate as a sole proprietor. Entrepreneur defines it as a business that legally has no separate existence from its owner. Income and losses are a tax on the individual’s personal income tax return. In plain English, you are the business through and through.
If you want to partner up with someone else, you can work as a partnership. Entrepreneur defines it as, a legal form of business operation between two or more individuals who share management and profits. Each state has regulations on partnership so look up your state rules. In other words, you and another person can run a business together and share the liabilities of the business.
If you want to legally form a corporation then you would likely form an LLC. Entrepreneur defines it as A form of business organization with the liability-shield advantages of a corporation and the flexibility and tax pass-through advantages of a partnership. In plain English, as an LLC you limit your liability if you file the proper documents.
Each one has some advantages and disadvantages. I recommend you think about your objectives and seek advice from an attorney to select the best choice. Some states might also require you to do a DBA(doing business as) form.
Regardless of what Rec Therapy or clinical business you are running, income taxes becomes an issue. The federal government offers an EIN(employer identification number) which you can easily obtain on their website. According to www.irs.gov, EIN is issued for the purpose of tax administration and are not intended for participation in any other activities. If you don’t have one, then you might need to use your personal social security number.
Luckily, nowadays you can search and find most documents online. Currently, Legal Zoom and Rocket Lawyer offer services that small business can use.
The world of running your own business can be difficult yet rewarding, and many Recreation Therapists have already started to run their own business.
If you want to know how to start a business I suggest reading Starting a Business for Dummies. However, if you are trying to get inspiration then I suggest you read The 4-hour Workweek or The $100 Startup. Both are great books which aim to show individuals how to best utilize their time and resources and fulfill a rewarding life.
Feel free to comment below any questions or comments.
Disclaimer: This is for informational purposes only and we are not giving any legal advice. Consult with an attorney if you have legal-specific questions. Any link which directs you to Amazon is an affiliate link.