Starting a small business is a multi-step process that can feel overwhelming when you are on your own, but JV LAW GROUP, LLP can make it easier for you.
- The company name. Many people agonize endlessly over dreaming up the perfect company name. Don’t. If you are waiting until you come up with the perfect name, you are also waiting to start making money. At least for now, pick a name so you can get the administrative ball rolling. Remember, your business can operate under a different name than your company name. A “doing business as” form takes minutes to complete.
- Get your Employer Identification Number (EIN). An EIN is the federal tax number used to identify your business. It is not required to get an EIN unless you will have employees or plan to form a partnership, LLC, or corporation. But, you should get an EIN anyway.
- Register your trade name. If you do not operate under your own name, your locality may require you to register a trade name. In most cases, you will get approved on the spot.
- Get your business license. Your county or city will require a business license. The form is simple to fill out.
- Complete a business personal-property tax form (if necessary). Businesses are taxed on “personal” property, just like individuals. If you purchase tangible personal property during your first year in business, you will list those items when you file your business personal-property tax form the following year.
- Ask your locality about other permits.
- Get a certificate of resale (if necessary). A certificate of resale, also known as a seller’s permit, allows you to collect state sales tax on products sold. (There is no sales tax on services.) If you will sell products, you need a seller’s permit. Your state department of taxation’s website has complete details, forms, etc..
- Get a business bank account. One of the easiest ways to cause problems with your business accounting and with the Internal Revenue Service (IRS) is to commingle personal and business funds (and transactions). Using a business account for all business transactions helps eliminates that possibility. Get a business account using your business name and EIN, and only use that account for business-related deposits, withdrawals, and transactions. Pick a bank or credit union that is convenient.
- Set up a simple accounting spreadsheet. Worry about business accounting software like QuickBooks later. For now, just create a spreadsheet that you can enter money you spend and money you receive. Bookkeeping is simple, at least at first. All you need are Revenue and Expenses columns; you can add line items as you go.
If you have any questions, please feel free to contact JV LAW GROUP today at 714-752-3270 or send us an email info@jvlawgroup.com.
