| Foreword: Be Your Own Boss | 5 |
Section 1 | Getting Started | 11 |
| Getting Started: Basics | |
| A Small Time Operator: A True Story | 13 |
| Kinds of Business | 13 |
| Business Failure Rates | 14 |
| Can You Do It? | 15 |
| Your Idea, and the Market | 16 |
| Business Location | |
| Choosing a Location | 17 |
| Zoning | 18 |
| Leases | 19 |
| Rural Businesses | 20 |
| Financing | |
| How Much Do You Need? | 20 |
| Start Up Capital | 21 |
| Self Financing | 21 |
| Debt Financing | 21 |
| Bank Loans | 22 |
| Other Loan Sources | 22 |
| Small Business Administration (SBA) | 23 |
| Loans to Yourself | 24 |
| Equity Financing (Investors) | 24 |
| Limited Partnerships | 24 |
| Limited Liability Companies (LLCs) | 25 |
| Venture Capital | 25 |
| Legal Structure | |
| Different Legal Structures | 25 |
| Sole Proprietorship | 26 |
| Choosing a Business Name | 27 |
| DBA / Fictitious Name Statement | 28 |
| Trademarked Names | 29 |
| Licenses and Permits | |
| General Information | 29 |
| Local Business Licenses | 29 |
| Other Local Permits | 30 |
| State Licenses | 31 |
| Sales Tax and Seller's (Resale) Permits | 32 |
| Use Tax | 34 |
| Other State Regulations | 34 |
| Federal Identification Numbers | 34 |
| Federal Licenses | 35 |
| Federal Trade Commission Rules | 35 |
| Insurance | 37 |
| The Business Plan | 42 |
Section 2 | Bookkeeping | 45 |
| Warming Up to an Unpopular Subject | |
| Why Keep a Set of Books | 47 |
| IRS Requirements | 47 |
| Setting Up Your Books | 48 |
| Hand-Posted Versus Computer Ledgers | 48 |
| Computer Software for Bookkeeping | 48 |
| Business Bank Accounts | 49 |
| Bookkeeping Simplified | |
| Introduction to Single-Entry Bookkeeping | 50 |
| Cash Accounting Vs. Accrual | 51 |
| Recording Income | 53 |
| The Income Ledger | 54 |
| Sales Returns | 55 |
| Installment Sales | 56 |
| Return (Bounced) Checks | 56 |
| Credit Sales | 57 |
| Direct Credit | 57 |
| Finance Charges | 58 |
| Credit Ledger | 58 |
| Accounts Receivable | 58 |
| Your Credit Customers | 59 |
| Uncollectible Accounts | 60 |
| Credit Cards | 60 |
| Debit Cards | 62 |
| Recording Expenditures | 62 |
| The Expenditure Ledger | 62 |
| Checkbook and Ledger Combined | 63 |
| Posting The Ledger | 64 |
| Accounts Payable | 67 |
| Petty Cash | 67 |
| Calculators and Adding Machines | 68 |
| Financial Management | |
| Profit and Loss Analysis | 69 |
| Cash Flow Projections | 70 |
| Inventory Control | 71 |
Section 3 | Growing Up | 73 |
| Business Growth | 75 |
| Hiring Help | |
| Employees Vs. Independent Contractors | 76 |
| Steps to Becoming an Employer | 80 |
| Federal and State Requirements | 80 |
| Federal Procedures and Taxes | 81 |
| Family Employees | 84 |
| Payroll Ledgers | 84 |
| Partnerships | 86 |
| General Vs. Limited Partnerships | 86 |
| Partnership Agreements | 87 |
| You and Your Partners | 88 |
| Partnership Bookkeeping | 89 |
| Partnership Post-Mortem | 90 |
| You, Incorporated | |
| A Corporation Primer | 91 |
| Limited Liability | 92 |
| Change of Ownership | 93 |
| Owner-Employees | 93 |
| Retained Earnings | 94 |
| S Corporations | 94 |
| Close Corporations | 95 |
| Steps to Incorporating | 95 |
| Articles of Incorporation | 96 |
| Incorporating an Existing Business | 98 |
| Limited Liability Company (LLC) | 98 |
Section 4 | Taxes | 101 |
| Deep in the Heart of Taxes | 103 |
| Accounting Period: Calendar Vs. Fiscal Year | 104 |
| Who Must File | 105 |
| Which Returns to File | 105 |
| Filing Dates | 106 |
| Tax Calendar | 106 |
| Business Expenses | |
| Basic IRS Rules | 109 |
| Start-Up Expenses | 110 |
| Prepaid Expenses | 110 |
| 100 Typical Expenses | 110 |
| Inventory and Cost-of-Goods-Sold | 113 |
| Assets: Machinery, Equipment, Furniture, Etc. | 116 |
| Depreciation | 117 |
| Vehicle Expenses | 123 |
| Repairs | 124 |
| Bad Debts | 124 |
| Casualty and Theft Losses | 125 |
| Donations | 125 |
| Interest | 125 |
| Entertainment | 125 |
| Business Gifts | 126 |
| Meals | 126 |
| Travel and Business Trips | 126 |
| Dues | 128 |
| Freight | 128 |
| Education Expenses | 128 |
| Insurance | 128 |
| Health Insurance | 128 |
| Non-Deductible Expenses | 128 |
| Self-Employment Tax | 130 |
| Retirement Deductions | 131 |
| IRA (Individual Retirement Account) | 132 |
| SEP (Simplified Employee Pension Plan) | 132 |
| SIMPLE Plan | 133 |
| Qualified Plans (401k, Keogh) | 133 |
| Other Small Business Tax Issues | |
| Estimated Tax Payments | 134 |
| Barter | 135 |
| Operating Losses (NOL) | 135 |
| Year End Tax Strategies | 136 |
| Tax Credits | 137 |
| Tax Software | 138 |
| The Internal Revenue Service | |
| The IRS and You | 138 |
| Business Losses and Hobby Loss Rule | 139 |
| Audits | 140 |
| Penalties | 140 |
| Failure to File | 141 |
| Amending Old Returns | 141 |
| Federal Information Returns | 142 |
| Excise Taxes | 143 |
| State and Local Taxes | |
| State Income Taxes | 143 |
| Gross Receipts Taxes | 144 |
| Other State Taxes | 145 |
| County, City and Local Taxes | 145 |
Section 5 | Home Business | 147 |
| Home, Inc. | 149 |
| Types of Businesses (and Possible Problems) | 150 |
| The Well Hidden Home Business | 151 |
| Post Office Boxes | 151 |
| Deliveries | 151 |
| Zoning | 152 |
| Housing Restrictions | 153 |
| Setting Up Your Office | 153 |
| Telephone | 154 |
| Insurance | 156 |
| Income Tax Laws | 157 |
| Home Office Deduction | 158 |
| Outgrowing The Home | 161 |
Section 6 | Your Business | 163 |
| How to Balance a Bank Account | 165 |
| Balance Sheets | 167 |
| Professional Help | |
| Accountants | 168 |
| Attorneys | 169 |
| Bookkeepers | 169 |
| Husband and Wife Businesses | 169 |
| Partnership, Sole Proprietor, or Corporation? | 169 |
| Income and Payroll Taxes | 170 |
| Spouse as Employee, and Fringe Benefits | 170 |
| Two Separate Businesses | 172 |
| Multiple Businesses (More Than One Business) | 172 |
| Import and Export Businesses | 173 |
| Buying a Business | |
| Independently Owned Businesses | 175 |
| Franchises | 179 |
| "Business Opportunities" | 181 |
| Freelancers, Professionals, Consultants | 181 |
| Independent Contractor Status | 181 |
| Royalties and Advances | 182 |
| Legal and Management | |
| Pricing | 182 |
| Trademarks | 184 |
| Patents | 187 |
| Copyrights | 189 |
| Contracts | 191 |
| How To Avoid Crooks | 193 |
| The Internet | 196 |
| Business on the Internet | 196 |
| Market Research | 196 |
| Web Sites | 197 |
| Domain Names | 198 |
| Web Hosting | 199 |
| Web Site Design | 200 |
| Shopping Carts | 203 |
| E-Mail | 204 |
| Links | 205 |
| Security | 206 |
| Managing and Marketing Your Business | 207 |
| The Future of Small Business | 208 |
| The Annual Update Sheet | 208 |
Section 7 | The Ledgers | 209 |
| Income and Expenditure Ledgers | |
| Year End Summaries | |
| Depreciation Worksheet and Equipment Ledger | |
| Credit Ledger, Payroll Ledger, Partners' Capital | |
| Petty Cash Ledger, Inventory Record | |
| Index | 223 |