Lowering the startup costs of business formation

Gathering the resources to create a corporation is not an easy task for an entrepreneur. But as Associated Press columnist Joyce Rosenberg writes, there are some easy ways for small business owners to cut down their startup costs.

The biggest way to reduce overhead in the early days of a company is to start by working at home, Rosenberg says. But to consistently work from home, entrepreneurs need to make adjustments to their everyday routines to help limit distractions from pets, children and others. If working from home isn’t realistic, entrepreneurs can also see if any of their friends has space they would be willing to rent at a reduced cost.

As the needs of the business continue to grow and a small business owner considers taking on employees, Rosenberg suggests they may want to consider working with freelance workers instead of full-time employees, because they don’t come with the added expenses of benefits and employment taxes.

Due to the poor overall jobs market, freelancing has continued to grow. According to CNN, a survey last year by the HR firm Kelly Services found that freelancers made up 26 percent of all workers – up from 19 percent in 2006.