Deciding to start a business can change your life. It can open new opportunities for you and help you become financially independent. However, it can be a challenging experience as well. That is especially true if you have never done it before. You have to be ready not only financially but also emotionally and mentally. Your reason to form a company should be good enough to keep you motivated.
7 Good Reasons To Form A Company
Before you finalize your decision to form a company, it is crucial for you to ask yourself about your underlying motivations. Doing this will help you protect yourself from unnecessary risks. At the same time, you get to confirm if being an entrepreneur is right for you.
There are many reasons why individuals choose to pursue their dream of becoming their own boss. Some may be better than others. To help you out, here are seven good reasons to start a business:
1. You can offer a better solution to a problem. If you discover an unsolved problem or an unmet need in the market, starting a business to address that may be a calling that is worth following. Perhaps existing companies cannot address the said problem as well as you can.
You can start by observing everyday life. Ask the following questions:
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- Is there an existing solution to the problem?
- If there is no solution on the market yet, do other people have the same problem?
If there is a sizable number of potential customers who are willing to pay for the idea that you have, then you have a good reason to launch a company. Remember to make sure that you are not fooling yourself with an overly ambitious assumption of what consumers will be willing to purchase. It will help to conduct market research to find out if there is a demand.
2. You can afford to take a risk. There are multiple factors you need to consider before launching a business venture. Since you are taking a risk, you have to be sure you can recover from it. It may take some time before your company reaches stability.
First, you need to have courage. It is normal to be afraid. After all, entrepreneurship can be scary. The future of any entity in the business industry is filled with uncertainty. But having courage can help you face all of the challenges that may come your way. Instead of letting fears hold you back, you can use them to push you to strive for success.
Second, you need to have money. Being an entrepreneur requires funding. Make sure you have enough capital to launch the business. You should also have a plan in place as to how you will cover the expenses. Check out our article on various options to raise capital.
Third, you need to have time. You have to know how to manage your time well and prioritize tasks according to their level of importance. If you are not ready to commit most of your time to the company, then you may have to postpone your plan of starting one.
3. You are passionate about the project. Being passionate about the business venture can be appealing to potential investors and clients. If you are interested in and enthusiastic about what you are doing, you are more likely to understand your customers and what they want. Pursuing a passion can also help keep you motivated even when things get tough.
4. Your idea has income potential. Entrepreneurship allows you to earn more income depending on your efforts and the success or failure of the business venture. That is what makes it different from working as an employee. However, you need to make sure that you can earn from the idea you have. If the expected expenses are way higher than the possible income, then it might not be a good idea to form a company out of that idea.
5. You want to help the community. Being able to give back to the community is a good reason to turn a valuable idea into a business opportunity. You can create jobs for many individuals. You can also attract more people to a particular area. Believing that your idea is innovative enough and can fill a gap for a service or product in the local area is a good reason to build an enterprise.
6. You are experienced in and accomplished at something in demand. A good reason to become an entrepreneur is expertise. If you have learned the ropes and understand every aspect of a field, then turn your capability into a tool to earn money. Customers should be able to see a differentiated value proposition to choose your products or services over that of your competitors.
7. You can create a real legacy. If running a business can afford you with the ability to leave a legacy behind, then it may be a worthwhile endeavor. This way, you have something you can leave for the next generation to remember you by. If the idea that you have is of real value, then it may have an impact on other people. It may even inspire them.
Doing Business In West Virginia
Once you decide to pursue entrepreneurship, you have to choose the right business entity structure. The most popular option for startups is the limited liability company (LLC) structure. It provides liability protection and allows pass-through taxation. Another crucial decision is the state where your business will operate. Your choices will have a long-term impact on your company. They can determine your compliance requirements and taxation.
You can choose to form a company in West Virginia. The state offers various programs and incentives that can be beneficial to your company.
Opportunity Zones Program – If your LLC is located in an opportunity zone in West Virginia, then you can have preferential tax treatment.
Central Appalachia Empowerment Zone (CAEZ) – If your West Virginia LLC qualifies for the Empowerment Zone/Enterprise Community Initiative, then it can benefit from funding and tax incentives. One of these is the Small Business Micro Loan Program.
Energy Incentives – West Virginia offers various energy incentives, such as Residential Solar Energy Tax Credit, Tax Exemption and Special Property Tax Assessment for Commercial Wind Energy, and Sales Tax Exemption for ENERGY STAR products.
Community Development Incentives – If you choose to register your new LLC in West Virginia, then you can check out some of the grants that the Department of Commerce administers. Examples are the Small Cities Block Grant, the Land and Water Conservation Fund, and the Neighborhood Stabilization Program.
Sales And Use Tax Exemption – West Virginia also offers an exemption for sales and use tax for certain businesses. You will qualify if you are offering any of the following:
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- Sales of broadcasting time for radio or television
- Advertising space in a magazine or newspaper for advertisements for goods and services
- Construction, repair, alteration, decoration, or improvement of a real property
- Daycare center services
- Mobility enhancing equipment and prosthetic devices
Flexible Profit Distribution – West Virginia LLCs have the freedom to decide on how to distribute the company’s profits.
Those are only some of the advantages that a West Virginia LLC can enjoy. Check with the state to find out if you qualify for any of them or if there are other programs that your company can benefit from.
Getting Help
Having a good reason to form a company is only one of the factors you need to think about. You have to prepare for the registration process that the state has set. In West Virginia, the process requires you to submit formal paperwork, pay for the corresponding fees, and complete state requirements.
The whole ordeal may add to the many responsibilities that you will have as a business owner. Fortunately, it is not something that you need to do on your own. If you think you need help, contact a third-party organization like DoMyLLC. Our team of experts can handle the preparation and filing of the proper documents to ensure that your West Virginia company is compliant with the state.
Business Filing Section