5 Myths About Starting a Business (Arizona)
May 13, 2021
5 Myths About Starting a Business (Arizona)
Starting a business is a daunting task that carries considerable personal and financial risk. However, there are several misconceptions about the process that can unnecessarily discourage someone who might otherwise be successful from launching a new company. In this first installment of our “myths” series, we dispel five of these misconceptions to make the idea of starting a business a little less intimidating.
Myth No. 1: Starting a Business Requires a Lot of Money
In general, starting a business doesn’t require a lot of money unless it’s a capital-intensive company with a lot of upfront equipment and other costs. By contrast, most businesses can be started with very little funding. Arizona’s fees for filing your articles of incorporation and other official company documents are relatively low, and if you work out of your home, you won’t even need office space.
As your business grows, you may need to hire employees, which will obviously entail additional expenses. But if you’re just starting out, there’s usually no reason to spend a fortune.
Myth No. 2: Starting a Business Requires a Lot of Experience
Although it helps to have experience in the relevant field before starting a business, it isn’t required. Plenty of people start companies in areas that they initially know little about. It’s easy to learn about almost any industry from resources on the internet and possibly from business colleagues.
Plus, if you don’t know much about the mechanics of starting a business, that’s where an experienced business attorney like Timothy Coons can help. He and his team have considerable expertise in helping businesses get off the ground, including things like forming limited liability companies and drafting operating agreements. So, while you don’t need a lot of experience to start a business, you do need a good attorney.
Myth No. 3: Starting a Business Requires a Lot of Time and Effort
While it certainly takes time and effort to build a business into a successful enterprise, starting one is relatively straightforward. Timothy Coons’ team can help you with all the necessary steps. He offers three different business formation packages that will take you through the process of starting a business from the ground up. As an example, the least expensive package ($1,500) includes:
– Reserving your LLC’s name
– Filing your LLC’s documents with Arizona Corporation Commission
– Acting as your LLC’s Statutory Agent for 1st year ($95/year after that)
– Create a simple LLC operating agreement
– Obtain a Federal Employer Identification Number
– Provide a one-hour strategy session with an attorney to discuss your business legal plan
Other packages include additional services that may be needed, depending on the type of business you’re starting.
After forming your Arizona LLC, there are other steps to take as well. For an additional fee, Timothy Coons can help you:
– Choose a tax status
– Apply for an Arizona Transaction Privilege Tax
– Register with an apply for a business license in your city or town
– Get Workers’ compensation insurance
– Obtain any necessary permits, licenses, and/or certifications
Myth No. 4: Starting a Business Requires You to Quit Your Day Job
You probably shouldn’t quit your day job when you start a business, because there’s no guarantee of success. First, learn about how to run a small business, and then plan the specifics of the business you want to launch. After it’s officially established, operate it part-time until you build enough of a customer or client base that leaving your day job to run the company full-time becomes financially feasible.
Myth No. 5: Starting a Business Is Best Done Alone
While it may seem risky to start a business with someone else as a co-owner, there’s actually more risk in going it alone. Most people don’t have all the necessary skills when it comes to producing a product or providing a service, marketing it, and financing the company. As a result, you have a better chance of success if you form a partnership with one or more other people with complementary skills.
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