5 Necessary Steps to Start a Business
View PDF | Print View | Html View
Written by: Greg Wager
Total views: 5 |
Word Count: 483 |
Date: Sat, 27 Feb 2010 |
0 comments
Here are some essential small business information to help your business expand. When starting or expanding your business, you will need all required licenses, permits, and registrations. Follow the five important steps below to assure your business is operating legally.
1. Decide on the legal structure of your business
You will need to decide on a legal structure to make your business a legal entity. The most used options are: sole proprietorship, partnership, corporation, s corporation, LLC (limited liability company), non-profit, and cooperative.
Choosing the appropriate structure depends on the amount of control you want, susceptibility to lawsuits, and financing needs. Each structure has their own tax, financial, and legal considerations and their own registration requirements. After deciding on a legal structure, you might need to file registration forms with your state and/or local government.
2. Register your assumed business name (Fictitious Name)
You'll get to write down a fictitious or assumed name in the area that's labeled DBA, Doing Business As, Fictitious Name, or Assumed Name.
If you don't choose a fictitious name, the legal name of your business will be your full name if you are the sole proprietor. If you have a partnership, the last names of you and your partner will be the legal name. For LLC, the legal name is registered with the state.
You'll be writing in your legal name for all government forms and applications. If you would like to start a shop with a different name, you'll want to check with your state and/or local government to see if its' necessary to file a fictitious name form.
3. Get Your Federal Tax ID
You will need an Employer Identification Number (EIN), also known as Employer Tax ID and Form SS-4. Businesses with employees, partnerships, corporations, and other organizations must obtain an EIN from the IRS.
IRS phone: 1(800)829-4933
4. Register with your state revenue agency
You have to obtain a tax ID and permits from your state's revenue agency. You will also need a Federal Tax ID and Sales Tax Permit or Vendor's License from the state and/or local government if your business deals with selling products and collecting taxes.
5. Permits and Licenses
A business license is needed to legally operate your business. Small businesses usually obtain an industry specific permit or general business license from the state or local government.
About the Author
More small business advice and small business information for starting a business is available at Nizbiz.
Rating: Not yet rated
