There are many people in California who have a side gig that they love; a side gig can be a great way to make some extra money, but did you know that it could also be the foundation of a legitimate business? If you are looking to turn your side gig into a full-time business, there are a few things you need to do in order to make it happen.
Figure out what business structure you will operate under
One of the most common business structures for small business owners is to operate as a sole proprietor. This means that you are the only owner of your business and you are responsible for all aspects of the business, from marketing to accounting.
Another business structure option is to form a limited liability company (LLC). This business structure offers you personal liability protection and can help you to attract investors. Lastly, you could also form a corporation, which is a more complex business structure but offers additional benefits, like tax breaks. It is important to figure out what business structure you will operate under because it will affect things like how much money you can raise for your business, what kind of taxes you will pay and how much personal liability you will have.
Get the proper business licenses and permits
Depending on what kind of business you are starting, you may need to get certain business licenses and permits in order to operate legally. For example, if you are starting a restaurant, you will need to get a food license in order to serve food. To avoid business law penalties, make sure you research what business licenses and permits are required in your state or locality.
Operating a business without the proper licenses and permits can result in heavy fines, so it is not worth the risk to do business illegally.
Register your business with the government
If you are going to be operating as a sole proprietor or partnership, you will need to register your business with the government. This can be done online through the Small Business Administration website.
Corporations and LLCs also need to register with the government, but this process is a bit more complex. You will need to file articles of incorporation or organization with the government, and you may need to appoint a registered agent. Registering your business with the government is important because it allows you to legally operate your business and protects you from personal liability.
While there are other steps you can take to turn your side gig into a legitimate business, these are three of the most important. The best part is that all these steps aren’t as complicated or daunting as they may seem at first.