5 Things Business Owners Don’t Do That Scare Me

Entrepreneurialism

Oct 31

It’s Halloween, and I’m not afraid of ghouls and witches! What scares me are these five things business owners don’t do.

#1 Register Their Business

Registering your business name with your state protects it, and if you go the extra mile and register as an LLC, you’re protecting your personal assets as well. Yet many business owners don’t do this.

→Learn the difference between a sole proprietorship and an LLC.

#2 Use Their Social Security Number on Business Documents

And once you do that, register for an employer identification number (EIN) to protect your social security number.

You don’t need employees to have an EIN, and you can use it in place of your social security number on most business documents.

→ Apply for your EIN. (It’s free.)

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#3 Open a Business Bank Account

Many business owners don’t open a business bank account, instead using their personal account for business transactions.

Not only does this muddy the waters and make accounting more difficult, a business bank account protects your identity, allows you to accept credit card payments, and allows you to apply for a business credit card.

→ Why your business needs its own bank account - and what you need to open one.

#4 Have Insurance

We all know insurance is vital, yet there are some business owners who opt to go without.

It doesn’t matter what type of business you own, liability is a thing and one you don’t want to pay for without insurance.

Business insurance also covers your equipment and commercial space, if you have one. My policy paid for itself one year.

#5 Have Contracts and Policies

You want clear contracts that protect all parties, and/or a clear terms and conditions page on your website.

In many countries websites are now required to have a privacy policy and cookies banner. And even if you don’t live in one of these countries, you could be liable if someone from a country with these policies uses your website.

And if you provide education like me, a disclaimer is also helpful.

→ I recommend these contracts and legal templates.

→ My website contract went from 3 to 8 pages!

Skip the scares and make sure your business is protected.

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