By The New York Times
I was reading this article over at newyorktimes.com and thought this is a great article discussing a drawback of the so-called economic stimulus program.
“When Barbara Wright learned last year of a federal program to aid struggling small businesses like her South Side uniform company, she jumped at the chance to apply for the Small Business Administration loan.
“I thought I could use the loan to help my cash flow,” the soft-spoken Ms. Wright said as she pointed toward racks of uniforms at The Wright Fit, her store at 1805 West 95th Street. “You know you have to pay for this, and when your customers are taking 30 to 120 days to pay their invoices, things can get tight.”
So she went to her bank, ShoreBank, which helped prepare the paperwork, and she sent in her application. It was approved, and Ms. Wright borrowed $35,000, the maximum allowed under a special Obama administration 2009 economic stimulus program for small businesses.
She thought she could use the money to meet her cash needs, but she soon learned that the loan had a catch: It could not be used for operations. In fact, the money could be used only to help pay off a previous loan of $50,000 from ShoreBank.”
Read more at nytimes.com
Did you know?
The State of Tennessee recognizes online or web-based businesses as Tennessee businesses.
Tennessee web-based businesses are liable for the same taxes and regulations as businesses with a storefront. Tennessee web-based businesses that sell products or taxable services are required to collect sales tax from their Tennessee consumers. If they sell to consumers outside of Tennessee, they are not required to collect sales tax, because those consumers are required to pay a use tax to their domestic departments of Revenue. More Information on this topic can be found online at www.tn.gov/revenue.
Can’t wait until the day come that you leave your day job and work on your business full-time. Here a few tips from Legalzoom.com to get started.
Figure out how much money you’d have to make each month to match what you make at your day job. It gives you something tangible to attain: not just to increase sales, but by how much.
Plan how much of your business can be earned through different distribution channels. When revenue’s equal to that of your day job for three months, I’d put in my two weeks notice and make my long-held dream of entrepreneurship a reality.
Square away the paperwork: Take care of all the proper licensing with the state and IRS
Set up any wholesale accounts you might need to buy your supplies in bulk
Secure private health insurance that your previous employer may have been providing.
IRS: Checklist for Starting A Business
Learn the basic steps you need to follow to set up your own business with this checklist from the IRS.
