Starting a Business
The purpose of this info-graphic is to help outline the steps involved in starting a business. It covers the basic steps that we believe are important when thinking about starting a business.
First and foremost, it is important to decide on your business structure before you start your business. All businesses are considered a sole proprietorship by default. Unless you change this designation, you could be subjecting your personal assets, house, car, etc. to unnecessary risk.
Both an LLC and an S-Corporation designation protect your personal assets from your business liabilities.
If you start your business as an LLC or S-Corporation, you will need to apply for and employer identification number (EIN), which is akin to a social security number. Just like you need a social security number to work, you an EIN to operate. To file for an EIN, please visit the Internal Revenue Service website. Depending on the backlog, it can take 2 to 4 weeks to receive your official EIN.
One of the key steps in opening a business is creating a separate bank account for your business. You will want to keep your finances separate. It makes accounting easier. If you mix your accounts, it makes it harder to defend what is your vs. the business should someone make a claim against you. You will need an EIN to open a bank account.
Starting a business can be challenging, but there are places to go for help. If you have any questions, ask