I’ve created multiple corporations over the years. One of the fundamental first steps and one that will get the ball rolling is formalizing your business entity. For me and in this particular case, that meant forming a limited liability company. It’s actually a fairly simple process. Personally, I used Corporate.com to form my LLC. They handle all the paperwork including getting things set up with the state in which you wish to incorporate in. To keep things simple, I formed my LLC in Virginia. Lots of businesses choose Delaware or Nevada and I’m sure there are good reasons for doing so. Initially, I’m not so concerned about the impact taxes or laws in my state will have on my business. If I have to, I’ll move it to a friendlier state.
However, forming your corporation is the best way to get you energized. Once you get your articles of incorporation and the realization sets in that what you are doing is real, the game is on. At least that’s how it works for me. Here are the essential steps:
- Set up your corporation. I recommend an LLC for most new businesses.
- Get your EIN here. It’s free and you can get it nearly instantly online.
- Set up a business checking account with the bank of your choice.
- Begin to separate your personal and business financials as much as possible. Fund your checking account with the money you need to pay for business expenses and determine what that investment means to your business.
- Use QuickBooks for your accounting.
- Write a comprehensive operating agreement. It’s easier if you are the only member, but there are plenty of good examples online to help you if your business structure needs to be more complicated.
That’s really it. You have all the fundamental items in place to represent your business as a going concern.
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