What’s your business structure?

Working in sports or recreation has been a passion of mine. My first job was working as a soccer official when I was 12. Since then I’ve worked in a variety of jobs around sport or recreation. I wish I could say that I always planned on starting a business. That wasn’t the case. However, I was encouraged to start a Floorball business as there was a need and it was something I was passionate about. How do you start a business? I had a lot of questions. I’m sure you do as well.

Creating a business takes a lot of time and energy to go from an idea in your mind to a full- fledged business.  There are many forms you’ll need to fill out and fees to pay before you can legally act as a business. Before you do anything, you’ll want to figure out what type of business or structure you want to operate as.  Simply put, you have options at your disposal, but you’ll want to decide if you want to be a non-profit or a for profit business. The paperwork is similar, and each State has specific requirements for filing, though it’s best to understand which one to choose and why.  Aside from State requirements you’ll also need to start at the Federal level filing with the IRS to obtain the proper information needed to file your State paperwork.

Depending on what you’re interested or able to pursue you may choose to file as a business, or operate as an independent contractor or 1099 employee.  To be clear 1099s and W-2s are two separate tax forms for two different types of workers. If you’re an independent contractor, you use a 1099 form, not a W-2.  As an independent contractor, you are responsible for calculating your own payroll taxes and then submitting the sum to the government on a quarterly basis.  The important distinction revolves around who has control.  Does the employer control or have the right to control what and how the worker does the job?   If you’re unsure of how to best classify it’s best to consult the IRS and your State websites to help you find specific answers.

Aside from being a 1099 employee you may choose to form a Limited Liability Corporation (LLC).  There are a few options that you have when filing including, S-Corp, C-Corp, Sole Proprietor.  Each one will vary depending on the type of structure you are looking to create.  It’s best to do your research in this are before you start so you have a clear understanding of the pros and cons for each.  You’ll also want to consider the different tax liabilities that come with each.  A simple google search will provide you with a plethora of information regarding this topic.  If you’re able to its recommended to check with your State government office for potential resources to help you through this process.

Floorball is a growing and viable business. At the current time the number of Floorball businesses in the US are small yet the potential for this market is quite large.  As the sport continues to grow we will see more and more people jumping in to cash in on this new sport.  I predict that the path regarding development and the businesses surrounding it will look the same as other sports. Start at the youth levels, build knowledge through education and development, and build that into leagues, clubs, etc.  It’s likely with this growth we’ll see more influence coming from overseas.  If you’ve thought about a business the time is now, don’t wait, act.