Professional Documents
Culture Documents
Business
Foundation
Checklist
Legally structure and protect
your small business
COLLIN SUZIE
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EIN
An Employer Identification Number(EIN) is a unique nine digit number
assigned by the Internal Revenue Service (IRS) that allows the government to
identify businesses.
It is free to apply for an EIN all you have to do is follow the steps below.
1. Go to https://www.irs.gov
2. Start on home page
3. Go "File"
4. Go to "Businesses and Self Employed"
5. Go to "Small Business and Self Employed"
6. Go to "Employer ID Numbers"
7. Scroll down and go to "Apply for an EIN Online"
Business License
A business license is a document that is required for you to legally operate
your business in your city. Licensing requirements differ from state-to-state.
To obtain your business license follow these steps listed below.
1. Determine what business licensing you need. Are you a sole proprietor, a
corporation or a partnership? What type of business structure do you
have?
2. Research the regulations in your area (state, city and county)
3. Gather all the documents that you would need to complete your
application.
4. Submit your application to the correct state or local entity. Depending on
what state you live in you may receive instant results or you may have to
wait to find out if your application has been approved.
5. The final step is to renew your license every year that your business is still
open.
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Articles of Incorporation
Articles of Incorporation is a legal document filed with the government body
that documents the creation of a corporation. The Articles of Incorporation
typically includes basic information about the corporation itself.
I just want to point out that the C and LLC does stand Corporation and Articles
of Incorporation have to be filed for LLCs as well .
Below is a list of information that should be included in your Articles of
Incorporation:
Name of corporation
Name and address of the registered agent
Type of corporate structure (e.g., profit corporation, nonprofit corporation,
non-stock corporation, professional corporation, etc.)
Names and addresses of the initial board of directors
Number and type of authorized shares
Duration of the corporation, if it wasn't established to exist perpetually
Name, signature, and address of the incorporator, who is the person in
charge of setting up a corporation
Most states require a statement of the corporation's purpose
Sales Tax
If you are selling a product, you have to set up your business to pay sales tax
at the state level. Each state has its own unique tax laws and requirements so
it's best to contact the Department of Finance for your state for the right
information.
I would like to note that in some states you are required to pay a Business
Personal Property Tax, which is why it is important to get that information for
your state directly from the source.
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Franchise Tax
Despite the name, franchise tax literally has nothing to do with if your
business is a franchise or not. However, a franchise tax is basically paying for
the right to do business in a certain state. This tax is usually imposed on legal
business structures such as Partnerships corporations and LLCs.
Franchise tax differs from income tax solely because it is not based on how
much revenue the company made the previous year.
Bank Resolution
A bank resolution is a document created by the members of a LLC to formally
authorize the opening of a business bank account. The document outlines the
roles, obligations, and privileges of each member in respect to banking for the
company.
A bank resolution should include the following information:
Name and address of the LLC
Legal names of all employees and officers who are authorized to make
transactions through the company account
Bank Name and Address
Bank Account Number
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Business Bank Account
DUNS Number
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Operating Agreement
Below is a list of information that you can elect to use in your operating
agreement:
Name of the LLC
Duration of the LLC
Address
Name and address of the Registered Agent
Purpose of the business
Members, Contributions, and Interest
Names of the initial members
The amount of their contribution
Their ownership interest (percentage)
How new members make initial capital contributions and the required
amount per member
If and when additional contributions are required and how members decide
The process for admitting new members
How members receive the profits and losses each year
How the taxes on this distribution are allocated and distributed
Management
Dissolution
Liability Clause
Owners Manual
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Business Liability Insurance
I know by now the expenses to start your business are adding up and you're
trying to figure out which of these things you can go without. Honestly, none of
them. Especially not this one!
Domain Names
If you're not an online business or don't plan on having a website, this might be
the only item on this list that you can omit.
I'm not really going to get into the logistics of what a domain name is but simply
put, it’s the name of your website.
Even if you're not currently operating off of a website I feel like purchasing your
businesses domain name is a good decision to make. If you do not secure your
domain name in the beginning, you run the risk of someone else doing it for you.
It’s best to go ahead and secure all your ideal domain and social media name in
the beginning before your business gains a lot of traction.
There are hundreds of sites that you can go to to get reasonably priced
domain names however the one that I use the most is
www.namecheap.com.
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