Virtual Assistance Business

Having your own virtual assistance business can be very rewarding. You can control your schedule and how much income you earn. The flexibility that comes with owning your own Virtual Assistance (VA) business is wonderful if you want to spend more time with your family, work from your home office, or just plain tired of the long commutes to work and want more freedom in your life.

Knowing how to start a VA business doesn't have to be complicated but does require research and time. I'll share with you the legal steps it took me to start my VA Business. This article is not intended to provide or replace any legal advice or legal requirements on starting a business. Laws and legalities will vary depending on where you live. Please check with your county, city, and/or state for the proper legal procedures you need to take to start your own VA Business.

Step 1: Working from Your Home Office

First and foremost I had to determine if working out of my home was permitted. Zoning laws determine where you can set up shop depending on what type of business you want to start from your home. I contacted the county in which I live to find out if working out of my home is permitted. Fortunately, zoning laws permitted me to run a business in my home. I was then directed to my county's website address to view the laws of what I could and couldn't do in relation to running my business from my home. For example I am not permitted to have any signs in front of my home, no visible products in public view, and no excess traffic in my neighborhood just to name a few.

Step 2: Choosing Business Type or Entity

Second, I needed to decide what type of business entity to set up for my Virtual Assistance business. I had to choose from the following: Sole Proprietorship, Partnership, Limited Liability Company (LLC), or Corporation. Needless to say I didn't know what the difference between these were so I did some research.

For a Quick Comparison of each:

http://www.legalzoom.com/business-formations/compare-documents.html

After reviewing the pros and cons of each I decided that I would initially start off as a sole proprietor. Sole proprietorships have relatively no or low start up cost. If you're interested in saving some money and avoiding attorney and/or accounting fees to form your business, you can easily do it yourself with Legal Zoom.

Step 3: Registering A Fictitious Business Name

Third, I contacted the Clerk of Superior and State Courts office for my county to find out how to file for a fictitious business name for my VA Business (also known as Doing Business As [DBA], assumed name, firm name or trade business name).
Side Note: As a sole proprietor and because I wanted to do business using a name other my legal name, the state of GA requires filing for a fictitious business name.
The Clerk of Courts Office searched for the business name I wanted to use to make sure no one else was using that business name in the county that I live.

There was a $65 fee to register my fictitious business name, $40 of which went to the local county daily post newspaper to officially let others know that I was open for business.

Step 4: Getting A Business License

Fourth, I went to the get a business license. I received my business license the same day. I had to pay an occupation tax for the estimated gross income I expected to make for the year. The fee to get my business license was approximately $65 including the occupation tax fees.

Step 5: Opening  A Business Checking Account

Fifth, I went to my bank to open a small business checking account for my Virtual Assistance Business. My bank required that I have my fictitious business name registration, business license, and Federal TAX ID or social security number to open a account under my business name. No problem because I was prepared.

It's also wise to set up a business savings account. This account can specifically be used to deposit quarterly estimated tax payments for your business. Estimated quarterly tax payments are what you expect to owe in taxes for you business in one quarter. Depending on where you live these payments are to be made to the IRS quarterly on specific dates.

Side Note: Some laws require you to get a Federal and State Tax ID if you have employees, are a LLC, and/or are a Corporation. You may be able to also get a Federal Tax ID if you don't want to do business using your personal social security number.

Sales & Use Tax

Sixth, and finally I had to contact the Georgia Dept. of Revenue to find out if my business/services required me to charge my clients any taxes.

Whew....that was a mouth full. So you can see a sole proprietorship has relatively low start up costs. As I said before always do your research to find out the legal requirements and procedures to start your own Virtual Assistance Business. You may also want to consult a lawyer and accountant.

Recommended Resource

The Five Key Steps to Your Successful Virtual Assistant Business  - This book covers everything from what are virtual assistants to services you can offer as a VA. It also goes into detail about starting, operating, and growing a profitable and successful virtual assistant business, pricing your services and more.