Setting Up Your Small Business in 3 Simple Steps

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Post on 30-Jun-2015

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  • 1. Setting Up Your Small Business in 3 Simple Steps

2. 3 Simple Steps People new to business often dont knowwhat to do to start setting up their smallbusiness. They may have a great idea, but dont know howto make a profitable business out of it. The steps involved in setting up a business arestraightforward, but require lots of thought. Here are the 3 simple steps you need tocomplete to finish setting up your smallbusiness. 3. #1: Get a Tax ID from the IRS This is the first and easiest of the 3 steps you musttake to setup your business. Heres how to completethis step: Go to www.irs.gov Search for Employer ID Numbers Find the Apply for an EIN Online link and click it Another page will pop up with directions for filing online, find and click the Apply Online Now link near the bottom Follow the directions from there Once you get the EIN, you will use it in the next twosteps. So you must do this step first. 4. #2: Establish the Legal Entity of YourBusiness To start any business, the business must have alegal status. There are many types of legal entities. Some ofthem are: sole proprietorships partnerships LLC corporations Talk to a lawyer to find out what legal entity is rightfor your business, or look in the Resource Centerto find out where to go to learn more about eachtype of entity. 5. #3: Open a Bank Account in the Name of the Business This last step is probably the most importantstep, at least until your business startsmaking money. For many of the legal entities listed above,the owner has to do some very specific thingsto keep the business in good standing withthe IRS and the courts (in the event of alawsuit). One of these specific things is making sureyou keep your personal assets and businessassets separate. 6. #3: Open a Bank Account in the Name of the Business Do not purchase anything for yourbusiness with a personal check or yourpersonal credit card. Use your small business account for all businesspurchases. If you dont have enough money in the businessaccount, add some money from your personalaccount in round hundreds or thousands. This is important because it makes the transactionlook like your are generally investing in your business,rather than buying something specific and using yourbusiness as a cover. 7. Once these 3 things are down, youreready to find customers and make aprofit. Good luck. 8. Links This Blog Post Solo Small Business