How to Start a Small Business as a Freelancer in New Castle County, Delaware
Starting a small business is a big undertaking. Fortunately, if you're a freelancer looking to turn your side hustle into a full-fledged business, there are some steps you can take to increase your chances of success. In this article, we'll outline some of the key things you need to do to start a small business in New Castle County, Delaware.
Creating a Business Plan
One of the first things you should do when starting a small business is to create a business plan. This document will outline your business goals, strategies, and how you plan on achieving them. A well-written business plan can help you secure funding from investors and lenders, and it can also keep you focused as you work to grow your business.
Returning to School
Another important step you should take when starting a small business is to return to school and earn your degree. While you don't need a degree to be a successful entrepreneur, having one can give you the added knowledge and credibility you need to grow your business. Additionally, many colleges and universities offer entrepreneurship programs that can provide valuable resources and connections as you start your business.
Forming an S Corp or LLC
If you're starting a small business in Delaware, you’ll need to legally structure your business with the state. Many entrepreneurs choose an S corp or LLC designation.
An S corporation Delaware designation offers numerous benefits for small businesses. First of all, as owner/shareholders of an S corp, business owners can potentially have their business income taxed as personal income — at higher personal tax rates — which can reduce the amount of self-employment taxes due on that income. Second, unlike other types of corporate structures, business owners in an S corp are not held responsible for the liabilities associated with it.
On the other hand, there are also several reasons why you might want to form a Delaware LLC for your business. First, an LLC provides personal liability protection for its owners. This means that if your business owes money or gets sued, your personal assets are protected. Second, an LLC is easy and inexpensive to set up. There are no special forms to file and the fees are relatively low. Finally, an LLC can be used for any type of business, including sole proprietorships and partnerships.
As a freelancer, you probably already know the importance of networking. When starting a small business, networking can help you find new clients and partners as well as connect with other entrepreneurs who can offer advice and support. There are numerous networking events and groups in Delaware that cater to small businesses, including those you’ll have access to with your New Castle Chamber of Commerce membership, so be sure to check out what's available in your area.
Once you have everything set up for your small business, it's time to start marketing it. There are many ways to market your business, but some of the most effective methods include creating a website, using social media, and advertising in local publications. Whatever marketing strategy you choose, make sure it's aligned with your overall business goals.
Starting a small business is no easy feat. However, if you take the time to create a solid foundation for your business — including writing a business plan, returning to school, forming an S corporation or LLC, networking, and marketing — you'll be on your way to success in New Castle County!Photo: Pexels