Unless you are going to be working for a hospital, clinic, doctor/midwife's office, or an organization, you will need to consider starting your own business. Whether you intend to stick with being a doula or childbirth educator or to branch out to many areas of the perinatal field, you must plan on how you intend to record your income and control liability issues. There are seven steps to starting your own business.

Step 1: Develop a business plan.
Every business plan should begin with an executive summary describing, in detail, the purpose of your business. Then it should include an overview of the basis on which it is formed. This plan should include details on the business environment, description of products or services you will offer, a marketing plan, an operation plan, a financial plan, and a financial proposal if necessary. See the sample business plan breakdown below.

1. Executive Summary - a 1-2 page document describing the business	6. Marketing Plan - separate plan Sales goals Public Relations Economic Environment Industry Environment Customer Profile Demographics Trends Competition Marketing Channels Sales Tactics Pricing Packaging Sponsoring Marketing Calendar
2. Overview - the basis on which the business is formed	7. Operation Plan - separate plan Management Team Advisory Board Human Resources Personnel Manual Policies Guarantees Facilities and Equipment Standard Operating Procedures Growth/Expansion Plans
3. Introduction Purpose History Benefits Goals Critical Success Factors	8. Financial Plan - separate plan Financial Condition Revenue Projections Break-Even Analysis Credit Cash Flow Projection
4. Business Environment Regulatory Market Problems Expansion Potential	9.  Financing Proposal Amount Needed Detailed Budget Repayment Options
5. Description of Product or Service Unique Selling Points Benefits Problems Patents, Licenses, etc. Production Strategy

Step 2: Choosing the type of business.
Once you have a plan, you must determine what type of business best suits your needs. There are several types of businesses to consider: sole proprietorship, partnership, limited liability company and incorporation. A sole-proprietorship is a form of business in which one person owns all the assets of the business and is personally liable for the business. This is the simplest to form and income is reported on your personal taxes. The drawback to this form is that your personal property may be in jeopardy should litigation be brought against you. A partnership is a type of business comprised of one or more general partners who manage the business and who are personally liable for the partnership debts. This also is relatively simple to form and works well when a clear division of duties and responsibilities are established. The drawbacks of this form are that the partners are personal liable for each others' debts, as if you were married, and your personal property could be in jeopardy by litigation. A limited liability company is a form of business organization that is managed by its members or managers, characterized by limited liability, and has limitations on the transferability of ownership interest. The forms for a limited liability company are not very difficult to file, the owners are not personally liable for company matters and they are not double taxed. Finally, a corporation-subchapter S or subchapter C can be formed. A subchapter S is designed for small businesses with no more than 35 shareholders. Income is reported on personal income tax forms and there is protection from liability. The subchapter C is for large businesses with unlimited shareholders and investors and double taxation. For corporations, a large drawback is the lengthy paperwork required for filing. Great resources for more information on choosing the right type of business for you are the Small Business Administration, the IRS, and the Secretary of State Office of your state.

Step 3: Filing the Proper Forms
It is vital to file the proper tax forms with the federal, state, and local government to ensure that your business stays legal. When you form your business, you are typically advised as to the forms you will need to complete. It is essential that you file the forms on time so as to not incur additional fees. Below you will find a chart of the typical tax forms you will need to file based on your type of business. Additional forms to record your business income will need to be filed with your county and state governments so check with your Secretary of State Office, your county Auditor and the IRS to make certain you file all the forms you need.

Type of Business	Individual Taxes	You may be liable for	Use Form
Sole Proprietor		Income tax	1040 and Schedule C1 or C-EZ
		Self-employment tax	1040 and Schedule SE
		Estimated tax	1040-ES
Sole Proprietor	YEs	Social Security and Medicare taxes and income tax withholding	941
	Yes	Federal Unemployment (FUTA) tax	940 or 940-EZ
	Yes	Depositing employment taxes	81092
Partnership		Annual return of income for business	1065
		Employment taxes	Same as sole proprietor
Partners	Yes	Income tax	1040 and Schedule E3
	Yes	Self-employment tax	1040 and Schedule ES
	Yes	Estimated tax	1040-ES
Corporation or S Corp.		Income tax	1120 or 1120-A (corp) 1120S (Scorp)
		Estimated	1120-W (corp only) and 81092
		Employment taxes	Same as sole proprietor
S Corp shareholders	Yes	Income tax	1040 and Schedule E3
	Yes	Estimated tax	1040-ES