| In setting up a business, one of the most important | | | | the United States Small Business Administration (SBA) |
| decisions you have to make is to choose the type of | | | | website at which will provide you a list of where to |
| business structure you will have such as Sole | | | | obtain necessary information about business licenses |
| Proprietorship, Partnership, Limited Liability Company or | | | | for your state. Additional information is also available |
| Corporation. The type of business structure is an | | | | from your city and county's web sites. |
| important determinant on how your business will | | | | Following is a simple checklist you may follow for |
| operate and for taxation purposes. | | | | starting and registering your business: |
| If you decided on a Sole Proprietorship or Partnership | | | | 1. Business License - all businesses need a license |
| structure type of business, you have to register it by | | | | 2. DBA/Fictitious Business Name - businesses using a |
| filing a form called DBA (Doing Business As) or FBN | | | | name other than the owner's name have to register a |
| (Fictitious Business Name). This is dependent on the | | | | DBA/Fictitious Business Name Certificate. If your |
| state where the business is being formed where you | | | | business is an LLC or corporation, a DBA is not |
| have to apply for the necessary licenses and permits | | | | required. |
| as may be required. If your business is a corporation or | | | | 3. State Tax ID/Employer ID Number EIN - businesses |
| Limited Liability Company, you have to register it with | | | | that have employees have to get an EIN and a |
| the Secretary of State as such and a corresponding | | | | Federal Tax ID Number (FEIN). |
| number will be given when the formation documents | | | | 4. Seller's Permit/Reseller's License/Tax ID - |
| are filed. This number is most likely called the | | | | wholesalers or retailers of taxable goods and services |
| Secretary of State File Number. | | | | need to a Wholesale License, Seller's Permit or Resale |
| If you have employees, you also need to get a | | | | License. |
| number from your state's Employment Development | | | | 5. Federal Tax Id Employer Identification Number FEIN - |
| Department to allow you to deal with payroll issues. | | | | corporations or LLCs, employers, and, in some states, |
| An Employer ID Number (EIN), also known as a federal | | | | those businesses that are also getting a Seller's Permit |
| tax identification number is used as an identification | | | | are required to obtain a Federal Tax ID Number (FEIN) |
| number for other purposes, including filing state tax | | | | and a Business License. |
| returns. This is an IRS requirement in order to operate. | | | | 6. Corporation or Limited Liability Company - articles of |
| Applying for an EIN for your business is very easy by | | | | incorporation or articles of agreement. |
| filling in IRS Form SS-4. You can apply for an EIN | | | | 7. Partnership/LLC Agreement - Operating Agreement. |
| online, by telephone, by fax, or by mail. If you submit | | | | Some of the above permits and licenses are |
| your application online, you will receive your EIN at the | | | | necessary in opening a business bank account. Make |
| same time and use it immediately. | | | | sure that you comply with all requirements and provide |
| Information regarding the types of business licenses | | | | all necessary documents in order to register and obtain |
| you need to operate may be obtained from the state, | | | | your business license or a home occupation permit |
| city, county, or town wherein you plan to conduct | | | | before you start business operations. If you do not, |
| business. The license requirements depend on the | | | | there is a very high possibility that you may incur |
| types of businesses you want to operate. For a | | | | monetary and punitive liability for failure to do so. |
| comprehensive list of these requirements, you can visit | | | | |