Many people dream of being their own boss. After all, a 9 to 5 job may not be for everyone. However, entrepreneurship can be challenging. While there will be moments of success, you may also have to go beyond your comfort zone at times. That is why you have to be ready financially, emotionally, and mentally before you start a business.
Reasons To Start a Business
There are a lot of reasons why individuals choose to be business owners. Some do it because they want to have full control when it comes to their pace and the path they would take. If you are still wondering whether being an entrepreneur is for you, here are seven good reasons to start a business in Hawaii:
1. You will be your own boss. Instead of being frustrated every time your superior makes mistakes, you get to make the decisions. You can determine the course you would take and the goals that you want to achieve. You also decide on the finances of the business, the company culture, and the quality of work you expect from employees.
Additionally, you can also have flexible working hours. Being an employee may force you to be on the job from 9 to 5. But, as an entrepreneur, you can choose your schedule. This is especially helpful for people who are more productive during a certain time, such as night owls or early risers.
Being a business owner also opens new opportunities for you to enhance various skills and acquire new knowledge. Since you will be more likely to handle multiple responsibilities, you will be more familiar with various aspects of running a company.
2. You have the freedom to define your job description. As stated earlier, you may need to handle various responsibilities. So, you can utilize your talents and skills more effectively. Your role is not only limited to one job description. That is especially true during the early stages as you may not have employees yet.
3. You can turn your passion into a profitable pursuit. Most, if not all, aspects of the business are up to you. However, you should keep in mind the reason why you are starting a business. This way, you can remain motivated even when things get tough.
Turning your passion into a business will help you earn money. At the same time, you get to enjoy what you do.
4. You can increase your earning potential. A regular job may help you be financially independent. However, being an entrepreneur can help build your wealth. It may be a bit hard at first. But, if you learn the ropes of running a company and continue to work hard, you can maintain the relevance of your business and attain success.
5. You can help create jobs. Forming a business also allows you to help the community. You can generate jobs. You can also train your employees to help them enhance their skills.
6. You will learn a lot even from failures. Once you decide to be an entrepreneur, you have to understand that there is always a possibility that you will experience failure. While that can discourage you, failures can also be opportunities for you to learn.
What you can do is evaluate the results and find out where you made mistakes. You should also check which aspects need improvement. Make sure you accept responsibility and respond accordingly.
7. You can be an expert in the industry. Being an entrepreneur opens new possibilities. After learning new skills and gaining knowledge, you can build your credibility. As time goes by, you can become an expert in your field.
Here are the things you can do:
- Identify what you are passionate about. This way, you can stay motivated even if you have to work harder and longer hours.
- Make time. You may have heard of the saying that practice makes perfect. That is applicable in this case. Through practice and experience, you can expand your knowledge.
- Grab opportunities that come your way. It would help to accept opportunities that will challenge you.
Why Should You Be Forming An LLC
Once you decide to launch a business venture in Hawaii, you should choose the right structure. Your decision will affect the way you will run your company and the requirements that you have to comply with. A popular choice for many new businesses is the limited liability company (LLC).
Here are some of the advantages that an LLC offers:
- This business entity structure offers limited liability. So, the owners will enjoy liability protection.
- By default, an LLC is treated as a pass-through entity in terms of taxation. That means that you do not have to worry about double taxation. However, you also have the freedom to choose your company’s tax treatment. You can be taxed as a corporation if you want.
- The state allows LLCs to choose the way they will distribute business profits among the owners.
- Unlike a corporation, an LLC does not have to maintain minutes of meetings and resolutions.
- Transferring ownership of an LLC is easy. Stakeholders can sell their shares to third parties without worrying about affecting the business operations.
- The state also offers business incentives and has programs to help companies. Among these are the Enterprise Zones Partnership Program, Foreign Trade Zone Programs, HUBZone Program, High Technology Business Investment Tax Credit, and Workforce Training Funds for Employers, among others. Check with state and local agencies to find out the requirements and whether your company qualifies for any of the programs that the state offers.
Understanding the Process of Forming an LLC
To form an LLC, you have to understand the process that you have to go through. Each state has regulations and requirements based on their laws.
In Hawaii, you will have to register the company to formalize and legalize your business operations. It involves the filing of formal paperwork and completion of multiple steps.
To help you get started, here is a simple step-by-step guide:
- Choose a name for your LLC. The state requires you to use a distinguishable name. That means that you cannot use one that is already taken by another business entity. You will have to conduct a business entity name search to check its availability. You also need to follow the naming guidelines that the state has set. You need to use a proper designator. You will have to include the words Limited Liability Company or any of its abbreviations.
- Nominate a registered agent. You need to appoint a registered agent. It can be an individual, who is a resident and has a street address in the state. You can also opt for a commercial registered agent. It has to be a third-party organization like DoMyLLC that is authorized to transact in the state. Your registered agent will accept legal correspondence or other business mail on behalf of your LLC. To help you find the best registered agents, read the Five Traits Of A Good LLC Registered Agent For Your Business.
- File formal paperwork. Once you are 100% sure you are ready to form an LLC, you will have to submit a completed Articles of Organization with the Department of Commerce and Consumer Affairs. It comes with a $50 filing fee.
- Prepare an operating agreement. This document is internal, so you do not have to submit it to the state. Generally, it sets the rights and duties of the owners and managers. It can also define how you will run your company. Find out more about this topic through this article.
- Ensuring compliance. Depending on your company’s activities and location, you may have other tax and reporting obligations. Check this with state and local agencies.
There are many good reasons why you should consider forming an LLC. However, you will have to be ready to handle various responsibilities.
As a business owner, you have to ensure the compliance of your company with state obligations. Fortunately, you do not have to handle everything on your own. If you think you need help in handling the registration process, contact DoMyLLC. We can streamline the process. We can also act as your registered agent.
Business Filing Section