Small Business Thread

[Scrote Squad]

At the end of the month, I’m going to be opening up my own law practice in NEO. For those of you that have owned or currently own their own small business, any advice to share? Anything from taxes, switching assets, marketing, etc. TIA!

 

[DirtyDan]

At the end of the month, I’m going to be opening up my own law practice in NEO. For those of you that have owned or currently own their own small business, any advice to share? Anything from taxes, switching assets, marketing, etc. TIA!

What kind of law if you don't mind sharing?

 

[Scrote Squad]

What kind of law if you don't mind sharing?

Criminal defense, traffic, wills, trusts, and juvenile to start. Will likely get into probate work and be competent in PI as time goes on.

 

[KI4MVP]

At the end of the month, I’m going to be opening up my own law practice in NEO. For those of you that have owned or currently own their own small business, any advice to share? Anything from taxes, switching assets, marketing, etc. TIA!

I've run a small business since 2007. Not remotely like the one you'll run. I went into from being a computer programmer who never hired anyone to accidentally starting a t-shirt company (long story).

Some things I learned. I'm not sure how big of a staff you'll need. We have about 20 people

Hiring is hard. It takes going through a lot of people to find good employees. It didn't take us too long to figure out to put people on a 30 or 90 day trial period, depending on the job.

People will quit without notice, including some of the good ones. Sometimes at the worst possible time.

 

[CleveRocks]

I've run a small business since 2007. Not remotely like the one you'll run. I went into from being a computer programmer who never hired anyone to accidentally starting a t-shirt company (long story).

Some things I learned. I'm not sure how big of a staff you'll need. We have about 20 people

Hiring is hard. It takes going through a lot of people to find good employees. It didn't take us too long to figure out to put people on a 30 or 90 day trial period, depending on the job.

People will quit without notice, including some of the good ones. Sometimes at the worst possible time.

This.. and when employees quit it is always the worst possible time.. you have to start with a culture of accountability and growth.. Actually something JBB is very good at. If you can achieve team cohesion you can do very well.

Also get yourself a good accountant. I use Xero for bookkeeping which works well for consulting..

Also. Your inventory us Time × Knowledge.. So charge for time, and keep close tabs on it, but allocate some time for knowledge acquisition..

 

[Scrote Squad]

I’m going to start out as a solo practitioner for the time being. If there’s an opportunity for future growth, I’ll obviously be open to it.

I have an accountant who I’ve spoken with already and have a good idea of some of the tax benefits that come with owning your own small business.

If any of you have any tricks that you learned over time, specifically in the area of write offs, moving assets, etc., I’d be interested to hear about those.

 

[inliner311]

I’m going to start out as a solo practitioner for the time being. If there’s an opportunity for future growth, I’ll obviously be open to it.

I have an accountant who I’ve spoken with already and have a good idea of some of the tax benefits that come with owning your own small business.

If any of you have any tricks that you learned over time, specifically in the area of write offs, moving assets, etc., I’d be interested to hear about those.

Have you figured out your office space? I know there are law firms and groups of independent lawyers that rent out office space to others. It might be a good way to figure out how to operate and have people that you can ask if you need tips.

I also figure a lot of business is from word of mouth and getting a recommendation or lead from someone else. If you are in a shared office space, I assume you would get jobs from other lawyers when it's outside their scope or they don't have the time for it.

 

[bigking777]

Make sure your accountant gets you to sign and send in the quarterly tax forms for Federal, State and Local.
Once you grow, you'll probably have to go monthly.

I would also recommend getting your name out as a specialist in a certain area. You want everyone to refer people to you for your area of expertise. People always have a "guy". "Hey! Need a plumber? I've got a guy." "Estate attorney? I know a great guy."

Maybe start out getting all the business you can, but shift into the area you really love. That focus will shine through. Be the best criminal defense attorney, estate attorney, medical malpractice, immigration lawyer, whatever.

As mentioned above, finding quality employees is like striking gold. Hold onto the good ones. Offer them benefits and compensate them properly. And not just financially.

Open up a SEP-IRA and contribute as much as you can (up to 25% of your annual compensation or $69k limit for 2024).
You'll pay your employees the same percentage of their income also into their SEP-IRAs. Percentage of income. Not same dollars. One of your biggest write-offs for the business.

If your income isn't that high where you need the write-offs, open and fund a Roth IRA. ($7k for 2024 plus a$1k catch-up for those over 50 years old). These after-tax dollars grow tax-free through retirement.