When you make the shift from being an employee to a business owner, you’ll want to gain an understanding of how compensation and health insurance will differ as a business owner versus that of an employee, as well as familiarize yourself with something called imputed income.

As a business owner, it’s vital to stay away from using monies from your business to pay for personal expenses even if you intend to reimburse the company later. You run the risk of piercing the corporate veil and getting into serious trouble with the IRS and other tax agencies should you and/or your business undergo an audit (ex: claiming business deductions for non-legitimate business expenses, failure to report and pay taxes on taxable income).

If you are planning to establish a legal business entity (ex: Limited Liability Company (LLC) or Corporation) or have an existing legal business entity in New York and are considering a sub-chapter S election, there are a few things you’ll want to keep in mind.

Ok, perhaps I’m being a bit dramatic with the term “vultures” or maybe I’m not. In case you were unaware, New York is one of only three states that still require newly formed Limited Liability Companies (LLCs) to publish a notice related to the formation of the LLC in newspapers.

If you decide to go into business for yourself, you’ll eventually want to form a legal business entity. A common type of entity structure for startups and small businesses is the Limited Liability Company or LLC. LLCs are established at the state level and are generally easy to form and don’t have as many requirements as Corporations.

Once your business is on track to “go live” and commence business operations, you’ll need to find a good bank and open a business bank account. To start off, you’ll probably only need one business bank account - typically, a business checking account but as the business needs and requirements change, opening additional accounts may be warranted.

As you get started with your new business, there may come a time when you will need to seek professional counsel from a good business law firm and/or CPA firm. Even if your circumstances may not warrant professional counsel at the onset of your new business, you may eventually need to seek counsel as your business grows.

Now that you’re ready and committed to starting a business, you need to put together a game plan. There are a lot of moving parts when it comes to starting a business so it’s important to be organized, detail-oriented and have all your ducks lined up. You’ll first want to take a “view from 10,000 feet” and then drill-down into the specific details.