Congratulations you've decided to take the first steps into going into business for yourself! Part of the initial process is to research all the necessary steps as well as costs involved in laying the foundation to ensure you are off to a great start.
It seemingly can be a frightening and daunting task, however, @thearriettacompany we can help lead and guide you through the process to make it as painless as possible.
STEPS TO SETTING UP YOUR BUSINESS
Decide on a legal business structure and incorporate Corporation, LLC or Sole Proprietorship. Be mindful that each business structure comes with its own direct legal and tax consequences.
Select your business name and search your local secretary of state’s website to make sure it’s not already being used. Some secretary of state websites allows you to form your business directly online, by completing the necessary steps and paying the necessary filing fees. Please note that you will be required to designate someone who resides in your state of formation as a registered agent. This is the individual or business that will accept any legal documents being served to the business. You also want to be mindful of what address you are going to use to register your business, some people may not want to use their home address, as this will become a matter of public record. There are other options, which we can explain in greater detail.
Research and apply for any city and or local business licenses necessary for the type of business you are going into. Each business type has its own state required licenses and processes in order to obtain that license. The good thing is that most states, municipalities, and counties display this information right on there websites and may also allow you to apply and pay the required fees right online.
Depending on the type of business you are running it may also be necessary to establish a sales tax account directly with your state department of revenue. Along with that process, you may need to file your returns regardless of sales tax or payroll withholdings at particular intervals to avoid accumulation of fines.
Apply for an EIN with the IRS. This process is absolutely free and relatively easy to acquire. However, prior to completing this step, you should already know whether you elect to be taxed as a corporation or as a pass-through entity. Click the below link to be directed to the IRS website: https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers
As you can see from the above steps there are many factors to consider when laying the legal foundation during the setup for your business, that's why it's important to either research this information or contact someone like The Arrietta Company to help guide you through the process and or to help elevate the stress of this process altogether.
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