Massage & Bodywork

May/June 2011

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visit abmp.com SET UP YOUR BUSINESS FOR SUCCESS If you've decided to take the plunge and become an entrepreneur, there are a lot of things to consider. Going into business is a journey, and setting out on the right foot will keep you from having to backtrack later on down the road. Like most massage therapists who start their own businesses, you probably need to do things as economically as possible. With a little research and careful planning, you can avoid unnecessary expenditures, not to mention unnecessary stress. You may think you already know everything you need to know about going into business. If massage is not your first career and you've been a business owner before, that may be so. But if that's not the case, you'll want to seek the advice of a few experts. Maybe you're not sure which business structure is best for you. Service Corps of Retired Executives (SCORE) is an organization that usually has an office in your local Chamber of Commerce or Small Business Association, and is one place you can go for free advice about business in general. An accountant can pay for herself many times over by helping you set up your business bookkeeping, saving you money on your income tax, and advising you on budgeting and planning for your business goals and your future. An attorney can explain the various business structures and register your business if you don't feel confident about handling it yourself. Spending money for professional assistance at the outset can save you a lot of money in the long run and help you avoid the kind of financial pitfalls that put people out of business. You might even be able to barter massage for some of these services; it doesn't hurt to ask. CHOOSE A BUSINESS STRUCTURE Many massage therapists go into business as sole proprietors. Those who have future plans for expansion may choose a corporate structure instead. There are several types of partnership and corporate structures. Some states allow Limited Liability Corporations (LLC) or Limited Liability Partnerships (LLP); some don't. The main benefit to incorporating is varying degrees of protection of personal assets in the event the business goes bankrupt. All business structures have unique features when it comes to taxation. One way or the other, you're going to be paying taxes; as a self-employed person, you'll need to pay quarterly estimated taxes, regardless of your structure (see more about taxes in "Tax Time: Stress Less, Pay Less," March/April 2011, page 20). If you're a sole proprietor using an assumed name (that's "doing business as" or D/B/A), such as Serenity Massage & Bodywork, you must register that name with your state revenue department and use it for both state and federal tax returns, for example, as Mary Smith, D/B/A Serenity Massage & Bodywork. You won't have to put that big mouthful on your business cards, but you would want to put the exact name of your business on all legal paperwork. So choose your business structure, then you can do the rest. A sole proprietor can use her social security number for tax identification purposes, but it's wise to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), which can be done instantly on their website. If you have others working for you, an EIN is a necessity. OBTAIN THE PROPER LICENSES There are few states that don't regulate massage on a statewide basis: Alaska, Kansas, Montana, Oklahoma, and Wyoming. The remaining states require licensure, certification, or registration based on meeting requirements for certain amounts of massage therapy education and passing a competency examination. earn CE hours at your convenience: abmp's online education center, www.abmp.com 19

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