When setting up a new business one of the most difficult tasks is the paperwork involved. This is particularly more difficult if you are trying to find one particular business structure. Given below are steps to set up a company irrespective of the structure of the business.
1. Name your BusinessCreate a name for your business that is unique and different. The name you give your business is also called a “doing business as”, or DBA name. You have to use this name on all Government forms that you have to fill for example for any license your business requires or tax forms etc.
2. Register for Employee Identification Number (EIN) It is the IRS that issues the employee identification number (EIN). The EIN issued to your business is used for federal and state taxation and for documents required for payroll tax reporting. You have to apply for the EIN on the IRS website. While applying for EIN you will have to register your company under the name you have created for it.
3. Open a Business Checking AccountOnce your company is registered under the name that you have chosen and is assigned an EIN number, you should open a business bank account. No business should be run from the owner’s personal account even if their tax liability passes through their business structure.
There are several reasons to have a separate business account:
From the very beginning keep your personal and business accounts and transactions separate to have a healthy business.
4. Keep Documents and Licenses in OrderWhen you begin a business you are expected to create and maintain a number of documents depending on the type of business you run:
Yoel “Mo” Molina and I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters..