12 Nov I have an online store. What do I do before hiring an employee?

Q. I have been selling decorated t-shirts on online and my business has done well and I’m considering opening up not a store front, but a kiosk at a beach location, for next summer. I don’t have employees now but I will need part-timers if I do this. I’m not even an LLC yet. What do I need to prepare if I take this one with employees?
— Starting up for real

A. Congratulations on your recent venture.

The best place to start is with a business plan.

You need to provide clarity on what your best or target customer will be, including specifics about their demographics, such as geographic location, gender, specific age group and possibly income, said Jody D’Agostini, a certified financial planner with The Falcon Financial Group in Morristown.

“How do you intend to deliver your t-shirts? What’s the best pricing? A business plan helps you organize and gives a road map towards the future,” she said, noting there are many templates that can be found online.

You will also need to create a thorough job description outlining the tasks and qualifications for the position, along with your expectations, along with a budget to determine what you can afford, she said.

D’Agostini said you should create an LLC for the business, which you can set up yourself or you can use an attorney.

“You will need to register online and apply for an EIN number (Employer Identification Number),” she said. “This is needed for IRS reporting and payroll and can be obtained through the IRS website.”

Next, she said, open a business checking account and run all expenses and payments through this.

“You will likely have to secure business insurance and workman’s compensation as well,” she said.

Email your questions to .

This story was originally published in November 2024.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.