Running a business in Connecticut or anywhere else can be expensive. However, many business owners may only take into account the cost of paying workers or buying equipment. What they may not be thinking about is the cost of business liability insurance policies. While prices may vary for an individual business, the average yearly insurance cost is about $741. Those who don’t have coverage may be financially exposed in a lawsuit or other claim.
Licenses and permits may also need to be acquired prior to starting a business. For instance, it may be necessary to pay a fee to become an LLC in a given state. Licenses or permits may also be required to build on existing land or renovate a building. Self-employment taxes are another cost that many business owners may not consider. The tax rate is 15.3 percent on the first $127,000 of income a person makes in a year.
Individuals generally pay this tax when they are employed, but their employees usually pay a portion of it for them. To help pay these costs, it may be a good idea to have a business credit card or another line of credit. However, it can be difficult to get the best rates if a person or the business itself doesn’t have a positive credit history.
There are many challenges that a startup business may experience. For instance, it may be a challenge to find funding or other resources to keep the company running. Companies may also have to deal with liability issues as well as compliance with government regulations. An attorney may be able to help a business owner handle these and other issues that the company may encounter as it forms and matures over time.