BRIAN L. FRIEDMAN, C.P.A., P.C.
BRIAN L. FRIEDMAN, C.P.A., P.C.

1. INTRODUCTION

 

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2. STARTING QUESTIONS


  • Are you starting a business or purchasing a current operating business?

 

  • Selling the Product or Service:
    • Product
      • Resale Product
      • Manufactured Product
    • Service
      • Office Based Service
    • Outside Service

 

  • Do you have any experience selling your product or service?

 

  • Is your product or service provided by other companies? (Who is your competition?)

 

  • To whom are you selling your product and service?
    • Consumer
    • Business

 

  • What is the selling price range?

 

  • Target Market
    • Define Target Market
    • How to reach Target Market
    • How large is the Target Market?

 

 

  • Purchasing, Manufacturing, and Related Costs of Your Product or Service.

 

Resale Product

  • Who are your suppliers and what are the financial arrangements for payment?
  • Do you have the space to hold inventory?
  • How would the product be delivered to customers?
  • Can your product become obsolete, worthless, spoiled?

 

Manufactured Product

  • Will you need to obtain a Patent?
  • Will you manufacture the product or sub-contract the manufacturing?
  • Do you have the space to hold inventory?
  • How would the product be delivered to customers?
  • What are your direct and indirect manufacturing costs?
  • Can your product become obsolete, worthless, spoiled?

 

Cost of Goods Sold

  • Product for Sale
    • Raw Materials
    • Resale Products
    • Freight-In
    • Packaging Supplies
    • Factory Labor & Related Payroll Taxes & Employee Costs
    • Factory Overhead
      • Rent
      • Electric
      • Insurance
      • Factory Expenses – Cleaning Services & Supplies, Alarm Contracts, Repairs, etc.

 

General, Administrative and Selling Expenses

  • Salaries
  • Pension Plan
  • Insurance - Medical
  • Insurance - Long Term Care
  • Employee Benefits - Other
  • Fica & Medicare Tax
  • Federal and State Unemployment Insurance Tax
  • Dbl Insurance
  • Workers Compensation Insurance
  • Rent
  • Electric
  • Rent - Storage
  • Telephone
  • Internet Services
  • Office & Stat, & Comp. Supp
  • Postage & Messenger Service
  • R & M - Office Equipment
  • Office Repairs & Maint.
  • Equip. Maint. Contracts
  • Computer Consulting
  • Accounting, Legal, Computer Fees
  • Professional Publications
  • Professional Seminars
  • Dues & Subscriptions
  • Licenses & Permits
  • Auto & Truck Rental
  • Auto & Truck Expenses
  • Parking & Tolls
  • Trains, Taxis & Buses
  • Travel
  • Advertising & Promotions
  • Entertainment & Meals
  • Gifts & Holidays
  • Insurance – Business, Liability, etc.
  • Interest
  • Bank Charges
  • Moving Costs
  • Federal Corporation Tax
  • State Corporation Tax
  • NYC Corporation Tax
  • New Jersey Corporation Tax

 

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3. FUNDING & BUSINESS LOCATIONS

 

  • Capital Expenditures & Security Deposits:
    • Office Furniture and Equipment
    • Computers
    • Manufacturing Equipment
    • Packaging Equipment
    • Transportation: Automobiles and Trucks
    • Factory & Warehouse: Storage Shelving & Forklifts
    • Leasehold Improvements – Walls, Electrical Etc.
    • Security Deposits – Rent, Telephone, Electric, Insurance Etc.

 

  • Capital/Investment:
    • Initial Investment into the business
    • Additional Investments into the business during startup period & cash shortages

 

  • Where is the Business Going to be Located?
    • Location of
      • Administration Offices
      • Manufacturing Facilities, Warehouse/Shipping
      • Selling Offices

 

  • How far is the business location from where you live?

 

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4. FINANCIAL PROJECTIONS

 

  • Income Statement Projection
    • Cash Basis or Accrual Basis
    • Monthly & Yearly Reports
    • Narrative regarding how and why income and expense items are computed

 

  • Cash Flow Projection
    • Initial Investment
    • Startup Costs
    • Monthly & Yearly Reports
    • Narrative regarding how and why receipts & disbursements are computed

 

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5. TYPE OF BUSINESS FORMATION

 
  • Sole Proprietorship
    • County Registration with Doing Business As (DBA)
    • Unlimited Liability

 

  • Single member Limited Liability Company
    • State Formation with required advertising notices.
    • Limited Liability
    • Taxed as Sole Proprietorship

 

  • Partnership
    • County Registration with Doing Business As (DBA)
    • Unlimited Liability
    • Partnership Agreement
    • Income/Losses Pass Directly to Partners

 

  • Limited Liability Company (LLC)
    • State Formation with required advertising notices.
    • Limited Liability
    • LLC Operating Agreement for Members
    • Taxed as Partnership upon election

 

  • Corporation
    • State Formation
    • Shareholders Agreement
    • Limited Liability
    • “C” Corporation
    • “S” Corporation
    • Must have employees

 

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6. BUSINESS PLAN

 

  • Nature of the Business
  • Business Objectives
  • Marketing Plan
  • Financial Plan
  • Organizational Plan
  • Owners’ Biography regarding experience in this business

 

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7. GOVERNMENT RULES, REGULATIONS & OTHER REQUIREMENTS

 

  • Name of Business Entity and DBA Names

 

  • Registration with Government Agencies

 

  • Federal Government: Internal Revenue Service
  • Form SS-4: Application for Federal Identification Number
  • Form 2553: Election by a Small Business Corporation
  • W-4: Employer’s Withholding Allowance Certificate
  • Immigration Services - I-9 Employment, Eligibility, Verification

 

  • New York State:               
  • Employer – NYS–100 NYS Employer Registration for 

                         Unemployment Insurance, Withholding & Wage Reporting

  • Sales Tax Authority – DTF-17 Application for Registration

                          as a Sales Tax Vendor

  • CT-6:   Election by a Federal S Corporation to be treated as a                    New York S Corp

 

  • Payroll Taxes
  • Employee Withholding Taxes – Fiduciary Responsibility of employer who makes decision on business bills to be paid. Personal liability.

 

  • Federal:
  • FICA Tax (Social Security and Medicare Tax) – Employer Cost 7.65% per employee wages up to maximum calendar yearly wages as defined by the government yearly.
  • FUTA Tax: (Federal Unemployment Tax) – Employer cost .8% per employee wages up to a maximum per calendar yearly wages of $ 7,000.

 

  • New York State
    • State Unemployment Tax – Employer cost of .1% up to 9% per employee wages up to a maximum calendar yearly wages of $ 8,500.
  • Required Insurance coverage:
    • Workers Compensation Insurance – rates vary depending on industry
    • Disability Insurance – Short Term

 

  • Sales & Use Tax
  • Fiduciary responsibility of owners – Personal Liability
  • Resale and exempt organization certificates
  • Invoices and Register Tapes
  • What is taxable and what is tax exempt?
  • Interstate and Intrastate sales
  • Internet Sales
  • Nexus :   A connection, tie, link
  • Insurance
  • Liability
  • Property
  • Auto
  • Business continuation
  • Permits and Licenses
  • Better Business Bureau
  • Health Department
  • Environmental
  • Clothing Registration - Clothing Manufacturer Number
  • Bookkeeping
  • Computer Programs,
  • Supporting Documents
  • Payroll Services

 

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8. WEB SITES


 

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9. DISCLAIMER

 

NOTICE:

U.S. Treasury Circular 230 Notice:

Any tax advice contained in this document is not intended or written to be used, and cannot be used for the purpose of:

          

  • avoiding penalties that may be imposed under the Internal Revenue Code or by any other applicable tax authority, or

 

  • promoting, marketing or recommending to another party any tax-related matter addressed herein.

 

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Contact Us

To schedule an appointment, please contact us via one of the following options

 

Phone: (516) 935-4565

Fax: (516) 935-3851

E-mail: info@brianfriedmancpa.com

Online Form

Business Hours

Appointments available upon request.

Address

BRIAN L FRIEDMAN CPA PC

15 Wilshire Ln

Plainview, NY 11803

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