Business side of Design

So this week for my professional prep class we have been doing some research into some basic business topics. My part was to research different business organization types and some different kinds of business insurance that you might need. Well I have never had any kind of business class before and honestly thought I would never need to know any of it anyway, but it turns out (like so many other times) that I was wrong. A lot of the information that I was researching would prove extremely valuable if I ever considered going into business for myself (or with someone else for that matter). I would have to decide if I wanted to just be a sole proprietorship or a partership, or if I wanted to venture into the land of corporations and LLCs. The sole proprietorship seems to make the most since starting out since there is no paperwork to be filed and no extra tax work to be done, however the thought of someone being able to sue my company and come after all of my personal assets is somewhat terrifying, so I think I might want to spend the extra money/time/hassle of setting up an LLC. It seems worth it in the long run. I still get to file on my personal tax return, but my personal assets are safe and I don’t have to worry about the bank coming after my house if I default on a loan.

The insurance was pretty basic, but I had never heard of business interruption insurance. It could prove quite useful if say, my computer was destroyed and I wasn’t able to design anything for a while. My property/casualty insurance would cover the cost of the computer, but the business interruption insurance would cover the cost of the time I lost not being able to design while my computer was getting fixed. Sounds like it could pay off. So now I feel a little more educated about the direction I would head in if I ever wanted to start my own design company.

 

It’s Business Time