11: Business Skills for Consultants
- Page ID
- 65158
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)Business licenses and certificates
Working as a consultant includes the need to have a local business certificate if your community requires one. In Bakersfield, the City of Bakersfield website has a portal where a consultant can apply for a business license. There is a list of twelve important pieces of information you need to gather to apply for this permit. In Bakersfield, the City office staff is amazing and very helpful. Call your amazing city office when you get to the point where you want to start taking clients for pay.
In our city, the first part of the business tax certificate application process looks like this:
CITY OF BAKERSFIELD BUSINESS TAX CERTIFICATE APPLICATION INFORMATION
Any business located within the City limits or coming into the City to conduct business is required to have a City Business Tax Certificate.
The Business Tax Certificate is valid until June 30th each year. Taxes are due each year on July 1 st and must be paid before July 31st to avoid penalties. Businesses are responsible for payment of the tax before the due date and should not rely on courtesy reminders.
A Business Tax Certificate Application may be obtained from the Treasury Division counter in City Hall North located at 1600 Truxtun Avenue or by calling the Treasury Division, (661) 326- 3762 or (661) 326-3763.
Items required to complete the application are:
- Business name – Fictitious Name filing – if required.
- Business address and telephone number.
- Billing address
- All owner names, Service of Process Addresses, and telephone numbers.
- Type of business.
- Type of organization.
- Federal I.D., Social Security, Driver License # or Other ID of one of the owners.
- Business start date in Bakersfield.
- Contractors License number – if required.
- California Department of Tax and Fee Administration (seller’s permit) – if required.
- Estimate of gross receipts for the first twelve months of business.
- Sign and date. Applications must be completely filled out to avoid any delays.
Please call our office at (661) 326-3762 to obtain a quote before mailing an application.
Applications need to be accompanied with payment in order to be processed.
Fees for regulatory permit(s) may be required depending on the type of business.
Starting a business in Kern County
Creating a business can feel scary, and this course is not a replacement for legal advice on this process. However, small business owners and entrepreneurs around California contribute to our great state’s economy every day.
Make sure to follow the business rules in your area, and consider taking a class in entrepreneurship to learn more. In Kern County, Bakersfield College offers noncredit certificates in Entrepreneurship, Small Business Development, and Small Business Execution.
Friends in other parts of California should check to see what the requirements are in their community. Once you know how to complete this process for yourself, you will be able to support new providers in your area with the process. Sharing what we learn is a big part of fostering positive collaborative relationships.
Employer Identification Number / Tax ID
Independent Facilitators working as 1099 NEC workers use their social security number as their tax identification.
Independent facilitators who are creating a separate business or a limited liability corporation (LLC) will need an EIN (Employer Identification Number). Apply for a Federal Employer Identification Number from the IRS if you plan to hire employees or operate as a corporation or partnership.
These numbers are used to ensure that the service provider is paying taxes on the money earned.
Branding/create logo
If you are starting or growing your business, you can use a logo to help build recognition for your work. Canva is a common resource for this. Consider hiring someone in SDP who works with graphic design to help you create yours. This brings our meaningful work full circle.
Getting legal advice on your customer agreement
Agreeing on the services you provide and communicating this with your clients can help avoid many problems. It may make sense to get legal advice on this agreement. You don't want to accidentally put in writing something that is not legal. Businesses, like LegalZoom, have question and answer sections that could be a reasonable resource to get started.
To be clear, this is not a recommendation of LegalZoom; rather, it helps you get started on the path to the legal supports you may need. Did you see how I made sure you know I am not recommending a product, but informing you of an example? So clever. The same should be done with any service, support, or research you provide. The participant and their circle of support are the ones hiring and firing. They need to vet their own service providers to ensure their needs will be meet and their goals can be reached with the provider's help.
Professional Liability Insurance
No matter how wonderful of an independent facilitator you are, you will make mistakes. Hopefully, those mistakes will be easily fixed and you will fix them quickly — and without charging your client. It is important to remember the great responsibility independent facilitators have in providing unbiased, high-quality, and ethical service to the people we serve. It is really important to have professional liability insurance in the rare case where a mistake you have made results in a lawsuit.
Make sure to speak with an insurance professional to discuss how much insurance is needed for the type of work you are providing if you have questions. Nothing in this book should be construed as legal advice. Learn as much as you can about the coverage you might want and purchase it. Talk with your accountant to see if it will be a tax write-off as a business expense.
Always talk with an expert to learn more about topics that are new to you. Taking advice about how to be a good IF from someone who is not an independent facilitator doesn’t really make sense. Advice about legal questions or insurance concerns or even accounting preparation should come from experts in their respective fields.
Bookkeeping and Invoicing
Invoices have specific requirements set by the Department. Make sure to include all the required information so your invoices can be paid quickly by the FMS.
Keeping track of your invoices, FMS payments, regional center
Business taxes
Bank Account
Keeping a bank account for direct deposit that is separate from your regular household needs will help you keep track of deposits more effectively.