An Overview of Startup Procedures
Each state has different requirements for filing your articles of incorporation, but basically it would contain the following information:
- Your company name
- Your company’s list of managers and directors
- Your company address
- Your company’s registered agent
Before going through the process of starting up your business here are some things that you would want to consider or look into:
- Choosing a business name and its legal structure – You may need to check you state’s database of existing businesses to check if your company’s name is not yet in use. Decide on what type of company you want to open, whether it will be a sole proprietorship, a partnership, a Limited Liability Company (LLC), or a corporation (or an S-Corporation).
- Write a business plan – This is important in the sense that this will determine the direction that you would want your business to go into.
- Obtain your Federal Employer Identification Number (FEIN) - For a company set up as a corporation, an LLC, a partnership, or a sole proprietorship with employees, they must first obtain a FEIN from the IRS for them to be able to open up a bank account or process its payroll.
- Open up a company bank account – Contact some banks in your area and ask for their specific requirements in opening a business checking account.
- Set up a physical address for your business – If you are not going to be a home-based business, it would be advisable to contact a commercial realtor to inquire about leasing an office space, retail space, or warehouse. It is also advisable to arrange for office furniture and utilities.
Obtain your business licenses and permits – Depending on the type of business that you would want to open, you may need to get a Federal License or permit.
Federal Permits – Most businesses do not require Federal Permits except if your business is involved in:
- Investment Advising
- Drug manufacturing
- Federal Permits – Most businesses do not require Federal Permits except if your business is involved in:
- Meat processing
- Ground transportation
- Sale of alcohol, tobacco, and firearms
State Licenses – Certain professions and occupations require state licensing and permits. People engaged in any of the following professions must secure a state license to be able to practice their craft or profession:
- Bill collectors
- Funeral directors
- Private security guards
- Private investigators
- Real estate agents
- Insurance carriers
State licenses and Permits based on products sold – Some states require businesses to secure special licenses if they are engaged in the sale of the following products:
- Lottery tickets
- Sales Tax Permit – Businesses should obtain a State Reseller’s Permit or a Resale Permit if they sell physical products within the state where their business is located wherein they pay and collect a sales tax.
- Business License – A business license grants a particular business or company to conduct its affairs within a city or country. Most cities or counties require businesses to acquire a business permit even if the business is home-based.
If you have decided on starting up your own corporation, your elected board of directors will holds its first meeting to complete some of the corporation’s initial actions, including appointing corporate officers, authorizing the opening of a company bank account, the issuance of shares of stocks, and the adoption of company bylaws. These bylaws will be put into writing and placed in the company’s records, they will be the rules used to govern on how the corporation will operate.