- posted by: JasonDavis on 2015-11-27
- tagged:
business-registration, corporation
- score: 6
Assuming I am a dummy and have no knowledge of what needs to be registered to form a legit business.
What are the Steps to create a new business for my web development agency/studio?
Some of my requirements are:
- Have a Business bank account that can cash checks made out to the name of the business.
- Be able to be on the Better Business Bureau website as a legit business.
- Have an Extended Greenbar SSL certificate requires:
Because of the level of proof required by the CA/Browser Forum, organizations must be listed with an official registration agency in their jurisdiction. Corporations, general partnerships, unincorporated associations, government agencies and sole proprietorships may apply if they have a valid license, charter or equivalent verifiable through that registration agency.
The requesting organization may not be located in a country or be part of an industry identified on a government prohibited list. Individuals and unregistered organizations are currently not eligible for SSL certificates with Extended Validation.
There are so many licenses and steps that I am not sure what is needed.
What I do know:
- I know I will need to form a corporation or LLC or similar entity.
- File for an EIN number from the IRS
I am not sure of any other steps though.
What is required to open the business bank account?
Answer 7992
It depends on the exact type of business you want to open and what state you’re in, but here are the most common steps you’ll need to take:
- Hire a lawyer. You’ll need legal advice often, and no one on StackExchange can really provide it (note: IANAL!), so find someone good to work with. See What Start-ups Should Know About Hiring a Lawyer.
- Pick a company name. Lots of legal, marketing, and business implications here. See How to name a business.
- Incorporate. You’ll want to incorporate to create a separate legal entity for your company. This helps protect your personal assets in case of bankruptcy or lawsuits and you’ll need it to have co-founders, investors, employees, stock, etc. You’ll have to pick a state to incorporate in, which won’t necessarily be the state you live in (however, if you do incorporate out-of-state, you’ll have to register as a “foreign corporation” in the state where you live). For example, many startups, regardless of where they are based, are Delaware C Corporations, because Delaware has well-understood, startup-friendly corporate laws. There are lots of trade-offs to consider. The Entrepreneur’s Guide to Business Law is a good guide.
- Figure out equity. If you have co-founders, and especially investors, you’ll probably want to be a Delaware C Corp and issue stock on a vesting schedule. See equity resources.
- Licenses and permits. See What State Licenses and Permits Does Your Business Need?.
- Employer ID Numbers. You’ll have to file paperwork to get an EIN (it’s like an SSN or tax id for your company) from the federal government and, in some states, from the state government. See Employer ID Numbers.
- Insurance. See What Type of Insurance Do I Need? and 13 Types of Insurance a Small Business Owner Should Have.
- Contracts and IP. Work with your lawyer to draft contracts for your customers, employees, contractors, partners, suppliers, and so on. Make sure you own all the IP you need and file patents as necessary. See Intellectual property for startups.
- Hire an accountant. See Why Startups Need Accountants.
- Set up bookkeeping. See Accounting 101 for tech startups and Small Business Accounting 101.
- Get a business bank account & credit card. See Why, and How to Keep Your Business and Personal Banking Separate and Why You Need A Business Banking Account, And How To Get One. Typically, you just need your papers of incorporation and an EIN, and you can apply for an account at most banks.
- Taxes and annual reports. You have to pay taxes throughout the year (withholding taxes from employees, or paying estimated taxes) and states have annual reports (with fees) due at different times of the year. Make sure to figure these out and get them on your calendar.
For more info, check out The Startup Checklist, which is a comprehensive (163 item) list of everything you need to do to start a company.
Answer 7951
LLC from your state of residence and EIN are all you will need for a bank account. Some banks allow registration as sole proprietorship D/B/A at local courthouse instead of LLC, as does SSL. That could save you money and hassle, but if you are accepting payment online, you want LLC anyway.
BBB has several other requirements including a year of being in business with them monitoring you. Details here: http://www.bbb.org/council/for-businesses/about-bbb-accreditation/bbb-accreditation-standards/
One other step you will need to take is to find out what state and local tax reporting is required in you area. For that get an accountant. A good accountant is a high priority. I have started businesses without one. Not gonna do that again.
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