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Most people want to start their own business, but they get bombarded by the legalities, forms and the unnecessary steps they're told they have to make. Tons of people will get the paperwork they need and lay it on the table and the next thing you know it has ketchup stains on it and headed for the trash. Well, I'm about to share with you how you get your business setup in less than two hours. Minus the ketchup stains!
First things first, you have to figure out what kind of company you want to have.
Non-Profit - All profits are applied to company expenses. You make "No-Profit"
For-Profit:
-Sole Proprietor - No distinction between the owner and the company. The owner is the company
-Partnership - All responsibilities are shared by two or more people. Must be registered for IRS purposes
-Limited Partnership - For silent partners who want limited liability and the ability to raise capital
-Corporation - It's a self contained company. Perfect for companies with multiple employees
-LLC - mix of partnership and corporation. Limited Liability. No personal property risk
-Co-op - Profits split between members. Members use products provided by companies
(This article is based on setting up your business in the fastest way possible, so we are going to use a Sole Proprietor business model.)
Second, you have to choose a name for your company. It can be what ever you want, but make sure it coincides with whatever you plan on doing. Like if your selling dog food, you may consider, Big Bites or something to that affect.
Third, the leg work. You cave to go down to your capital building, courthouse, tax commissioners, or where ever in your county you go to file for a business. You need to find the records department and ask for the Book of Trademarks. There is a huge book or books with names of every business ever trademarked in that county and which ones are still active. Check to make sure the name you want to use isn't in the book and then have it trademarked.
Depending on the county:
- A trademark could range from $15 - $200. Usually it's around $50.
- You may have to post an ad in the county paper informing everyone your business name has been trademark just in case someone else has the same name, but didn't renew or trademark their name. Also it informs the masses of a new business in town.
Fourth, go online to www.irs.gov. Search "apply for an EIN ". Fill out the information and voila! Your have an option to print the EIN verification or you can take a screen shot and save it.
(Do not change pages until you save or print the verification. Once you change pages, their is no going back. Then you will have to call the IRS to get another copy and this can take 7 - 21 business day.)
Now, you have your Trademark Certificate and EIN Verification, now it's time to call the bank. You can use your own bank or you can call the Mickey D's of banks (that bank that has nearly as many branches as a popular restaurant chain.) Do not go to the bank, call the business department. The wait is way shorter and if you do have to wait a little longer at least your comfortable in your own home and you can work on other things in the meantime.
Give the Representative all the info needed. Email or fax a copy of your trademark and EIN . Once you account is setup up, you will have to go to the bank to deposit your startup funds, which is usually $50. The bank will give you a temporary business card. In a few days, you will receive your business debit/credit card in the mail, but this one will actually have the name of your business on it.
From start to finish, this should take you less than two hours. I did most of this by cellphone many times. This is the fastest way to get started officially with a bank account. Using other business models will take longer, much longer. Now get out there and handle your business. lol
