7 Start-up Tasks for Forming an Entity
To get started there are a few key things you need to do:
- Select a company name. Corporate Direct assists in clearing the company’s name availability in the state of formation *
- Choose an entity type. Will you form a corporation, LLC, or LP? We assist in this choice. If you have a CPA we will work with them to determine the best tax reporting selection (i.e. S or C corporation or partnership taxation). We offer free consultations on choosing entity types. sign up for a free 15-minute consultation here.
- Form the entity the right way. Corporate Direct’s mission is to provide you with all the documents and services you need to be fully protected. Form your entity with confidence!
- Obtain an EIN (Employer Identification Number) from the IRS. This is your Social Security Number for the business. We can assist in obtaining this vital tax number. For more information on EINs click here.
- Open a company bank account. With your EIN and the corporate paperwork we provide – articles, by-laws, or operating agreements – you will open a company bank account. (Know that banks will not open an account without the EIN.) It is very important that you run your business activities through a business bank account. Co-mingling personal and business monies through your personal account can get you in trouble.
- Set up your books or hire a bookkeeper. Now that you are in business, you need to keep accurate financial records. If you have employees, you need to handle reporting and payroll tax matters. You can do this yourself (if desired). Many people’s time is more valuable and better placed in running the business – so they hire a bookkeeping service.
- Always provide corporate notice. You want the world to know you are doing business as a protected entity. On your checks, brochures, contracts, and leases you will always use your entity designation – Inc. for a corporation, LLC for a limited liability company, and LP for Limited Partnership. When you sign contracts you will do so not as Joe Jones but as Joe Jones, president of XYZ, Inc.
*A trademark name is independent of the company name. A trademark is the name applied to your goods or services. It can be handled after the company’s formation. For a free book on trademarking click here.