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September 2010

Dear Jim, I recently formed ABC Company, LLC, a flowershop. Previously the company was registered with the state of Colorado as ABC Company, Sole Proprietorship. My current business card does not have "LLC" after the company name, and I list my name but not a title. Do either of those items omitted from my business card open up the potential for personal liability?

Yes, it does matter and there could be liability issues. However, there is a way around it. Visit the Secretary of State website and register "ABC Company" as a trade name owned by ABC Company, LLC. You still need to use your title on your business card, or anything else that is intended for the general public. Think of a title like "Founder" or "CEO" and use that for all business related matters.

Dear Jim, I have a very small, simple business. Do I need to buy accounting software?

Not necessarily. If yours is a very small business you could start with the Dome bookkeeping system or develop your own spreadsheet system. But as your business grows you will find that professional accountingsoftware gives you the best information about your business and probably makes filing your income tax returns simpler. The most important thing is to keep good, detailed records.

Dear Jim, Where can I get money for my business?

This depends upon many factors and is rarely as simple as just going to the bank and asking for it. We recommend that you make an appointment with an SBDC consultant to guide and assist you in this process.

Dear Jim, I didn't start my business yet but I have spent money. Is that lost?

Probably not. You can accumulate pre-startup costs for a reasonable period, normally up to three years, in advance of starting your business and then deduct them in the first year your business is open.