TOO many Jamaicans are entering entrepreneurship with passion, but without the proper guidance. Business consultation, though critical, remains one of the most overlooked steps in setting up a company. It’s often treated as optional until problems arise, especially around tax compliance, legal structure, or financial reporting.

“After them buck them toe, the tax office runs in on them, and they say, ‘Jesus, if me did know’,” said Dr Kesha Christie, CEO of KCLH Full Business Solutions.

While speaking with the Jamaica Observer, Dr Christie pointed out that business owners rarely come in for consultation at the start, only showing up for consultations after problems hit, such as when the tax office shows up or their paperwork is rejected and they start to panic. Dr Christie said many new business owners either try to figure it out on their own or rely on generic tools like
ChatGPT, skipping the professional insight that can prevent long-term damage. Market research, legal structuring, tax forecasting, and system setup are all elements best navigated with professional support, yet are often neglected.

“People have the passion, but the research will always come above everything else,” she added.

Many aspiring entrepreneurs enter business driven by passion but often overlook the importance of market research. Dr Christie noted that this lack of preparation contributes to misinformation and poor decision-making, much of which could be avoided through proper consultation. Research and market analysis also provide critical direction for structuring and growing a business, particularly in an evolving tax and regulatory environment. In pointing to missteps in business formation, she explained that too often, individuals enter business without adequate research and assume they can operate informally, overlooking the legal and financial implications of their chosen structure.

“They come into business, and they don’t do their research, and they think, ‘Okay, I can just do a trading [sole trader],’ and they don’t recognise that the legal structure is critical to any business that you’re taking on,” she told the Business Observer.

Choosing the right business model, whether sole proprietorship, partnership, or limited liability company, has tax and legal consequences. But many opt for the least expensive route, registering as a sole proprietor for the $3,500 fee at the Companies Office of Jamaica, unaware of the potential risks. She warns that cost-cutting at the outset, particularly when it comes to structuring, can have long-term consequences. One key distinction, she explained, is the exposure a sole proprietor faces compared to a limited liability company. Without a warranty or legal safeguards, even a single dispute can jeopardise personal assets.

“There is no corporate veil of protection; you just go in [start the business], and they can just sweep you out, wipe you out with one go,” said Dr Christie.

In the absence of proper structure and planning, entrepreneurs risk losing everything, according to Dr Christie.

Globally, nearly half of new businesses fail within five years, and research suggests that in Jamaica more than two-thirds of start-ups fold within just two years, as such Dr Christie stressed that strategic guidance is essential for scaling a business while minimising losses. The decision-making process, she notes, can be overwhelming, which is why having a consultant with experience is critical in establishing the appropriate legal structure and managing tax obligations.

“One of the critical things with consulting is understanding, one, the industry that you are in and the tax obligations that you will encounter.”

Each industry carries specific tax requirements. Without proper knowledge, business owners may not know when or how to file, or what filings are necessary. Selecting the wrong tax category during company registration can result in the Tax Administration assigning estimated figures, potentially triggering interest charges and penalties.

“If no one is managing it [tax obligations], those late interest penalties creep up on you, and that’s why consultation is critical,” said Christie. “While starting a business is one of the most empowering steps you can take, you need the right guidance because it can also be one of the riskiest ones.”

Business consultation remains one of the most overlooked steps in entrepreneurship.

A lack of early business consultation and proper structuring often leads to closure — many entrepreneurs fail to anticipate compliance risks and operational challenges.