Managing a company in Iowa can be both exciting and challenging at the same time. There are times when you reap the rewards of your hard work. However, there may also be moments when you experience failure.
Launching a Company in Iowa
If you are still unsure whether starting a business is for you, then you will have to look into the pros and cons first. Aside from enjoying the benefits that come with being an entrepreneur, you should also prepare to face the disadvantages that may affect you.
To help you decide, here are the pros and cons of starting a business:
The Pros of Owning a Business
- You get to control your destiny. As an entrepreneur, you will have control over your success or failure. People who work harder, are open to continuously learning, and have perseverance have the potential to attain success in the industry. You are the decision-maker. So, you get to determine the path of your company.
- You get validation. Seeing people enjoying your product or knowing that your service helps their lives gives that feeling of bliss. That is a rewarding feeling for every entrepreneur. With a valuable product or service that you are passionate about, you are able to make a contribution to the community.
- You can earn more money. Having a regular job may be right for some people. However, there are those who want more than that. Pursuing entrepreneurship gives you an opportunity to create your own wealth. Being the company owner means you get to benefit from the financial rewards of your business. While this may take a while, you can be wealthier if you keep pushing on and remain relevant in the market.
- You can choose the people you work with. As an employee, you do not have the freedom to choose your colleagues. You may end up working with individuals who do not have the same vision as you. You are also subjected to the whims of your superiors who can decide who to fire or hire. Meanwhile, if you are the business owner, you have full control over who to include in your team. This way, you can create an office culture that aligns with the values that your company represents.
- You can enjoy success. While you may experience lows, you also enjoy the highs. Seeing your company grow and become successful feels good. Aside from financial rewards, you also get to achieve personal and professional growth.
The Cons of Being The Boss
- You may have to work longer hours. Being a business owner may give you freedom when it comes to your schedule. But there are times, especially when you are starting, when you will have to work harder and longer hours. It may be more than your 9 to 5 job. Startups often have few employees. So, you may have to take on more than one role. Failure to adjust to this lifestyle can tire you physically and emotionally.
- You will not have someone there to guide you. As an employee, you have a boss. You can rely on them to make big decisions. They are responsible for the team’s output and performance. However, as an entrepreneur, you will be the one to do that. You have to constantly think if you are doing the right thing or not. During the early days of entrepreneurship, you may have to go through trial and error to figure out what works.
- You may not have a salary for some time. As stated earlier, building your wealth as an entrepreneur can take time. So, you may not be paid during the early days. You may even have to shell out some money to cover your bills. If the business fails, you could end up with nothing. That is why it is important for you to ensure that you are fully prepared. That includes the financial aspect of running a business.
- You may suffer from failure. Failure is always a possibility. If your business venture tanks, you can be overwhelmed. It can also affect your mental state. Some even find it difficult to get over that dark time, especially if you lose money. So, keep in mind that you should also be mentally ready before giving entrepreneurship a try. You may also come up with a backup plan in case your business does not thrive.
Understanding What LLC Is
Before forming a business, you have to choose the business entity structure that best fits your company and circumstances. For many new entrepreneurs, the best option is the limited liability company (LLC).
So, what is it?
Generally, the LLC structure combines the limited liability protection that a corporation offers with the flexibility in management and pass-through taxation of a partnership. Starting an Iowa LLC may be a good choice for people who want to launch a small business.
Advantages of Forming an LLC in the State
The major advantages of starting an LLC in the state include the law that creditors cannot force the company owners, who are called members, to pay business debts using their personal assets. You can also avoid double taxation because the profits will be reported in the individual tax returns of the members.
The state also offers many tax advantages to attract businesses. For instance, it does not assess personal property taxes or sales taxes on manufacturing equipment and other machinery. Additionally, the corporation tax is based only on the total amount of sales that originate from the state.
The state also has programs and incentives for businesses. Check with state agencies to find out if you qualify for any of them.
- Economic Development Set Aside
- Entrepreneur and Innovation Support
- International Trade Assistance
Disadvantages of Choosing an Iowa LLC Structure
While organizing an LLC in the state comes with many advantages, you should also understand the disadvantages. Perhaps one of the most crucial is the difficulty in attracting investment capital. Unlike a corporation, an LLC cannot issue stocks.
Despite this, you may still be able to find generous investors willing to help with your funding. There are certain investors that may be more supportive and open to funding small businesses and startups. Read our article Options For Raising Capital For A New Business to learn more.
What You Should Do
Once you are sure that you are ready to form a business and have created a plan, the next step is for you to register your LLC with the state. You can do this by submitting formal paperwork, paying corresponding fees, and completing a process. The requirements, fees, and obligations vary, depending on the state.
In Iowa, it starts by coming up with a distinguishable company name. Make sure that no other existing entity in the state uses the name. Then, you will have to appoint a registered agent. After that, you can proceed with the filing of the Certificate of Organization with the Business Services Division of the Secretary of State.
Depending on your company’s industry, activities, and location, you may also have to acquire business licenses and permits. You may also have tax and reporting obligations. To better understand the whole process, read our article Form An LLC In Iowa: A Closer Look Into The Process.
Starting a business in Iowa as an LLC requires you to understand a multi-step process. You need attention to detail and patience to ensure that you complete every step properly and avoid issues in the future. If you think you need help with the filing and preparation of formal paperwork, contact DoMyLLC. Our team of experts can come up with a personalized solution to make sure that you will get a service that is suitable to the needs and circumstances of your business entity.
DoMyLLC can also be the registered agent of your company. We are authorized to do business in the state. Additionally, our team is familiar and experienced when it comes to state regulations and processes. So, we can also handle subsequent compliance requirements for your company. Talk to us now to find out more about the services that we offer and how your business can benefit from them.
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