March 3, 2010
by Bill Cherry
Many people decide to start a new business however they don’t know what to do first. Do they need a license? What kind of business should it be? A corporation? What should I name my business?
All of these questions are common ones and I will give you the answers to all of them and more.
Choose a Name:
First pick a name for your business. The name can be either a general name like Universal Inc. It doesn’t or a specific name like PC Laptops. Universal Inc. could be any kind of business. Choose a general name if you plan to create and operate several businesses under the umbrella of that name. You can use a DBA (doing business as) to create and run other businesses under that name.
IF you want people to know exactly what your business does use a specific name like PC Laptops. Don’t spend as week deciding on a name. Pick one and get going. You can change it later if you want to.
Choose a Domain Name:
In most cases you want a www.domain name.com that says what your business is. Try to make it the same. Write down 15 different domain names you would like to have. Then go to www.networksolution.com to see if any of the domains you want are available. Most of the ones you want will be taken. If you don’t find a domain you like keep searching.
Deciding on a business entity is next. Most choose a Limited Liability Company (LLC) but you can also choose a soul proprietorship, a corporation, or a partnership. The LLC is the most popular choice. Find an accountant, or lawyer to get your business created.
You will get the paper work for your business, a state tax number, and a federal EIN (Employee Identification Number). Some states will require other documents to sell products; it varies from state to state. Some lawyers take weeks to get an LLC completed, but there is no reason to. I you get the paper work yourself take it to the county court house yourself and register it. You can also use a service like www.legalzoom.com. There prices are fair and they are fast.
Your suppliers will want copies of your business documents to keep on file in order to work with them. If you sell on line many states don’t require you to collect sales tax. Check with your accountant.
Finally, get your office set up and open a business checking account. Don’t mix personal funds with business funds. Get a VISA card to use just for business. Once that is done you are all set to do business. Good luck.
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