When starting their own business, most people are preoccupied with their business idea and spend most of the time thinking about how to survive and, hopefully develop. That’s quite understandable, since business owners need to focus as much as possible on their core activities.
On the other hand, they need to realize that there’s a substantial amount of paperwork involved, especially when starting up a company. Depending on where you live, the number of permits and licenses you’ll need to get will vary, but there’s one thing that is inevitable. You can’t leave square one unless you have all the necessary papers.
If you’re thinking about starting your own business, you have to be aware that there will be some red-tape you’ll have to cut through, but that shouldn’t be the reason to give up before you’ve even started. No matter how many papers you need and how tiring it may be to get a hold of them, just accept that without them you won’t be able to test your business idea on the market.
So, here are some steps related to paperwork that you’ll need to take before starting a company. Mind you, your local regulations may vary, so you should consult relevant institutions.
What’s In A Name?
Choosing the right name for you company and product, as well as URL and website design, is also known to take quite a lot of time, which translates into lack of any action, i.e. no money is generated.
Most people don’t know that a business can operate under a different name than a company name by simply completing a “doing business as” (DBA) form, which allows you to register a company quickly and start working and possibly change the name you want to be known under.
Employer Identification Number (EIN)
If you’re planning on hiring people or forming a partnership or LLC, you need to get your EIN. The good thing is that it’s free and quite easy to get. Another advantage of getting an EIN, even if you may not be required to do so, is that it’ll allow you to keep your social security number private, thus reducing the chance of identity theft.
Simply apply for it online at the IRS website and you’ll be issued your EIN in a matter of minutes. As simple as that.
A Visit To Administrative Offices
Having already sorted out your name and EIN, you are now full of confidence that you can complete whatever steps your state requires and you head to your local administrative offices.
In case you want to register a trade name, i.e. you don’t want to operate under your own name, you can expect a positive answer to your request on the spot. Another important document you can get there is a business license and the necessary forms can be filled out in just a few minutes. This is also the first time you’ll be able to use your EIN to identify your business. Sometimes, they’ll ask you to estimate your annual gross receipts. Don’t worry if you get it wrong, since they just need your estimate anyways.
Some states may further ask you to complete a business personal property tax form. If you have to do that, but are planning to work from home, using your personal hardware, software and know-how, you don’t need to list those items.
Find Out About Other Permits And Papers
Since local regulations can be quite different, you really have to ask relevant institutions or professionals for help. For example, some regulations require a “home occupation permit”, a certificate of resale (a.k.a. a seller’s permit) or other papers, such as surety bonds. Again, because of all the different local requirements, it’s always advisable to consult professionals, such as experts from Jwsurety Bonds.
Business Bank Account
Now that you’ve done everything you had to do at the administrative offices, it’s time to pay a visit to a bank and get a business bank account. You don’t want to commingle personal and business funds, which is why getting a separate account is really important.
You’ll be given one once you provide your business name and EIN and you can start working immediately. Since there’s almost no need for going to a bank nowadays, because we can finish all of our transactions online, you don’t have to choose a bank that is the closest to your home or office. Instead, look for the best deal you can get.
Of course, even after you are given a business account you’ll still have to take care of a thing or two, but at least you’ll know that you’ve gathered most, if not all, of the paperwork required and that you can turn your attention to helping your business take off. As you can see, getting all the papers in order might be a bore, but you can actually have it all sorted out in a matter of days.
Author Bio: My name is Alex Williams. I am a journalism graduate, and a rookie blogger trying to find my luck. Blogs are the perfect opportunity for presenting yourself to wider audience, getting the chance to showcase my expertise and receiving recognition. I am a regular contributor at Bizzmakr Blog.