The more than 33 million small businesses in the United States contribute to economic growth, innovation and job creation across the country. They also face unique challenges. To build a company that lasts, entrepreneurs must jump through many regulatory hoops and keep up with ever-changing business laws. This can often lead to confusion, inefficiency and costly errors.
To be considered a small business, you must meet the size standards set by the Small Business Administration (SBA). These criteria are based on the average number of employees and total annual revenue, although specific numbers vary by industry. You can find out whether you qualify by checking your North American Industry Classification System (NAICS) code and referencing the SBA’s table of size standards.
Another consideration is your business structure. Choosing the right structure can help you save money and time on taxes and paperwork, and make it easier to grow. For example, a limited liability company (LLC) is a popular option for startups because it provides personal asset protection and flexibility with tax filings.
Small business owners come from all walks of life and have different paths to entrepreneurship. Some skip college and start their own ventures right away, while others work in a career field they enjoy and then take the leap into business ownership. Regardless of how they get started, all small business owners are ambitious trailblazers who want to leave their mark on the world. But not all are cut out for the role: Many small business owners are prone to burnout, which can cause them to lose sight of their goals or even close their doors.
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