Located just to the south of Phoenix, Gilbert, Arizona, currently holds the distinction of being the most populous incorporated town anywhere in the United States today. It's also an area that has grown wildly over the last 30 years, coming in at an average growth rate of about 13% per year across the entirety of that time.
If you're thinking about starting a new business in Gilbert, Arizona, whether it happens to be the first business you've ever operated, or if you've been an entrepreneur for many years, there are a number of critical factors that you'll want to keep in mind. Never forget that making the right moves today will lay the solid foundation you need to guarantee success tomorrow.
It All Begins With Your Business Structure
When it comes to starting a new business in Gilbert, Arizona, perhaps the most important decision you have to make ultimately comes down to the business structure that you choose at the outset of the process. This is critical, as it is a decision that will protect both you and your own personal assets every day from here on out.
The three major structures that you have to choose from are: Corporation, Non-Profit Corporation or Limited Liability Company (otherwise referred to as an "LLC"). If you're planning on: A) raising funds; and B) eventually taking your company public, you need to form a corporation. If you're planning on starting a non-profit, obviously, a Non-Profit Corporation is the structure to go with. If you want to guarantee that you have the level of flexibility you need to continue to adapt as both your business and your market continue to grow, you'll likely want to go with an LLC.
The Financial Side of the Equation
Next, you'll want to make an effort to keep your personal and business finances separate – a step you should always take BEFORE your Gilbert business opens its doors, not after. First, you'll want to head over to the IRS website and obtain an EIN, or "Employer Identification Number." This will come in handy when you open a business bank account and will be especially valuable in terms of factors like taxes and how you handle paying all of the employees you're about to hire.
With your EIN in place, you can then head over to the local bank of your choice and set up a dedicated bank account in your business's name. As stated, it could not be more important that you keep your personal and business finances totally separate at all times. Every dollar that your business makes needs to go into the business bank account – only then should you pay yourself a salary or take any other compensation that you had in mind. All bills and other financial obligations should also be paid out of this account.
Licensing and Beyond
Finally, you'll want to take care of all the Gilbert and Arizona-specific compliance issues that are required to actually run a business in this area – which means that it's time to think about both state and local licensing, whether you want to or not.
As this is a subject that will vary depending on exactly what type of business you're planning on opening, you'll definitely want to carefully browse the Arizona Department of Revenue's website to see what specific licensing requirements you'll need to adhere to in order to actually run the business of your choosing in Gilbert. You can also apply for any type of license you need right online – be it a new standard business license, a home-based business license, a mobile food vending license and much more.
Finally, it's also important for you to keep a list of resources nearby to help guide you throughout all parts of this process. Whether you're starting your first business or are simply expanding into the Gilbert area, you'll want to partner with both a business lawyer and a financial professional to help make sure everything is going as smoothly as possible. Gilbert also has a number of tools and resources in place to support you on the journey you're about to take. They have a dedicated team, as well as an invaluable tool known as SizeUp for Local Business Intelligence, that can help you with everything from site selection assistance to state incentive support to technical assistance and advocacy and much, much more.
Martinez & Shanken, PLLC writes for CountingWorks, an accounting news and advice website. Reach the firm at [email protected]
About Martinez & Shanken, PLLC
Martinez & Shanken, PLLC is a Certified Public Accountant (CPA) firm based in Gilbert, Arizona. We provide a full range of accounting, bookkeeping, consulting, outsourcing and business services. Partners Deborah Martinez and Earl Shanken work to ensure your business accounting is done with integrity and to your satisfaction.
