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7 Steps to Starting a Business

law@stassinos.

By Elias Stassinos Category: 0

Submit your Articles Here!

law@stassinos.com.

Best regards

Elias Stassinos
http://www.stassinos.com

7 Steps to Starting a Business
Copyright (c) 2006 Elias Stassinos

Here's a really simple way... to start your business.

If you are starting a business, you will need one or more
business licenses and tax ids. After reading this article
you will know what business licenses you need to start a
business.

First, regardless of the business you are starting, you
will need a business license.

There are some businesses that don't need one but that's
only 1% or less compared to the percentage of businesses
that need a business license. So, regardless of whether you
business is a home-based business, an online internet
business, a contractor's business, or a professional's
business, such as a doctor's medical office, you need a
business license. The business license requirement is a
requirement in addition to a required license you might
need from the state if you are a professional such as an
attorney or hairdresser. Depending on the location of your
business, or the type of business, the business is filed at
the state, county or municipal level of government.

Second, if you using a business name that does not include
your last name, you need to file a DBA (Doing Business As).

If your business name includes you last name but also
includes a suffix such as "& CO" or "& Associates" or
anything that denotes additional business owners, you need
to file a DBA. You can also file a corporation or LLC
instead of filing a DBA, but that may be a little more
expensive. However, even if you file a Corporation or LLC,
and the corporation name or LLC name is different from the
business name you will use to conduct business, you need to
file a DBA.

Third, if your business sells or leases taxable items or
services, you will need to obtain a state sales tax id
number (also called a seller's permit, wholesale license,
retail license or resale permit).

You will need a sales tax id number to buy wholesale, or if
you are a wholesaler, you will need it to sell wholesale.
For example, if you have a toy store, you will be able to
buy wholesale without paying any taxes for the toys to the
wholesaler and, subsequently, charging taxes to your
customers when you sell the toys.

Fourth, if you will hire employees, you will need to obtain
a federal employer tax identification number as well as a
state employer tax identification number.

These numbers are required if you are an employer.
Employment taxes are paid both to the federal and to the
state government.

Fifth, if you are planning to run a serious company, you
need to perform a nationwide business name search.

If you become a nationwide company, you may need to insure
that no one else is using the business name you are going
to use for you company. The way to acquire rights to the
use of a business name is by selling specific products or
providing specific services and using a specific business
name in a certain small region or large one, such as a
nationwide area. For example, if you sell Scandinavian
furniture in Minnesota under the business name "Fine
Scandinavian Furniture," you acquire some rights to the
business name in Minnesota. If another company in Minnesota
decides to sell the same type of furniture with your
business name, you can sue them to enjoin them from using
your business name.

Sixth, get the cheapest business insurance available:
incorporate your business or form a Limited Liability
Company (LLC).

You are not required to incorporate or form an LLC but it
is a very good idea to do so because a corporation or LLC
is a separate "person" or legal entity. Filing a DBA, does
not protect your personal assets. However, if you
incorporate or form an LLC, and someone sues your
corporation and obtains an unfavorable judgment against
your corporation, he or she can only execute the judgment
against the corporate assets -- not your personal assets
such as your home. Incorporating or forming an LLC is the
best way to protect your own personal assets.

The last step is to take your DBA or corporate certificate
to a bank and use it to open a business checking account
and a merchant account.

You will need these accounts to cash business checks
written out to your company name as well as use the
merchant account to run credit card transactions.

------------------------------------------------------------

You can hire an attorney to file your business documents, a
less expensive legal service or you can do it alone. After
obtaining the required business licenses discussed above,
and opening your business accounts, you are legally able to
start business operations. As an attorney, I have set-up
quite a few small businesses and, invariably, they needed
at least two or three of the above business licenses or tax
id numbers. Having filed all the required business licenses
will give you peace of mind to pursue other business
activities such as promoting your business and providing
customer support.

File all required business licenses for your business and
start making money!

----------------------------------------------------
Elias Stassinos, Esquire is a trademark and incorporation
attorney that has assisted thousands of small business
owners and entrepreneurs launch their first business
enterprise. Visit his law firm Website:
http://www.stassinos.com . Attorney Elias Stassinos,
Esquire is also a corporate legal
counsel for the leading online legal filing service at
http://www.businessnameusa.com .

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