I need a reference to get my LLC going, can you help me?
I got a name and a lawyer and so far that’s it.
Is there a reference to help me move a bit faster?
I am looking for an accountant as my lawyer suggested but I am not that familiar with business and was attempting to be cautious.
Well cautious is a bit slow and less profitable than I thought.
I once saw a reference in a library which had flow charts and cannot find it again. I should have copied down the ISBN and bought a copy for myself.
Can you help me?
The reference I am refering to is "what to do after the lawyer and accountant"?
Dear Elle Elle Cee,
First, it really depends on what State you’re in. Believe it or not, each state has their own website (i.e. www.nv.gov for Nevada). You can go to your state’s website and download all of the paperwork that you need to start your company. The first step is deciding in your business name and then using this State’s website to do a search to see if the name has been taken (each state website has a business name search). You can also get a copy of a typical "Operating Agreement" either from your lawyer or just by doing a simple search online (search words: operating agreement, sample).
Most of the forms that you need are rather easy to fill out and you’ll need to submit them manually… Believe it or not, each state has a toll-free number that you can call to get help with filling out the forms. Once you have reserved your business name and filled out / submitted your forms, the next thing you’ll need to do is to obtain an EIN number (some people call this a Tax ID). You can get this directly from the Department of Treasury (better known as the IRS). I’d call them directly (versus applying online) and they can issue you the Tax-ID right over the phone. Free of charge of course… Getting this Tax-ID is crucial to opening up your business accounts at your local bank.
If your paperwork has been filed through your lawyers office, or if you’ve done it on your own and the State has recognized your business name (you should have received a notice), then you can start to conduct your business. The following step would be to open up your business accounts. In this step you’ll need the following documents (bring them with you to your bank):
1) Articles of Organization
2) Tax ID
3) Operating Agreement
4) Fictitious Name Statement (if applicable – sometimes not needed).
Once your business accounts have been opened the next thing you’ll want to do is, ask yourself how you will accept payments from clients and customers? If you’re going to accept VISA/Master Card, Debit Cards, etc., then you’ll need to ask about Merchant Services. Sometimes your bank can set this up for you along with your depository accounts. I highly recommend setting it up with your bank because in many instances they will give you an additional benefit (like free accounts or even next-day business funding).
Here’s another tip, when you’re ordering your business checks ask the company that is printing them if they can create your business cards as well? Sometimes combining this order will give you a discount and as a new business owner, you’ll need all the discounts and free services that you can get. A good company to have both checks and business cards printed is with McBee.
Lastly, what’s your target market? What’s your service or product that you are trying to sell? Are you going to be a home based business or a retail store or work out of an office? In order to help you with what your next step is, we’d need to know what it is exactley that you are trying to do to generate income.
Since we don’t know, I would recommend building a website – you can do it for free right here on Yahoo! Even if the website just has basic information, you can use it as a reference tool to market to prospects.
My last piece of advice is, sit down and calculate what your income will be versus how much time and personal expense you are going to invest into this venture. Take into consideration all the aspects of the business and the types of resources that you have at your disposal. Do a small financial statement that lists all of your expenses versus your income. Do you show a profit? Are your numbers realistic? Are you paying yourself? Most structured businesses break even in the first year.
When looking for a CPA, ask the CPA what kind of clients they prefer to work with. If you’re a small business-single owner, then you’ll want a local CPA office to work with to help you write-off work related expenses. Again, your local telephone book is probably the best source – pick up the phone and ask them directly, "I am a small business owner and I need a CPA – what are your typical fees?" Some CPAs will charge you a flat fee per year (this allows you to talk to them at anytime throughout the year), while others charge an office fee or a filing fee.
I’d definitely talk to a CPA and mull over some of your ideas to see where you can get tax-breaks and also to see if the LLC is suitable for the line of work that you are proposing. You might find that you need a corporation instead and talking to the CPA should ultimately be your first step. Then, you talk to the lawyer to draft up the documents (assuming you’re under a time constraint and can’t do so yourself).
I hope the steps above helped you!!! They are the first steps that all business owners take in getting up and running.
Good luck!
~A.R. Pouretezadi
December 26th, 2009 at 9:00 pm
a reference for what? Your lawyer should be able to do the necessary setup for the LLC. If you’re looking for an accountant, talk to any business owners you know who have accountants, as for a reference.
Entrepreneur Magazine has some tips on what questions to ask when interviewing an accountant. Check em out! They also have startup books you can get at your library.
References :
December 26th, 2009 at 9:25 pm
check with your local city, or state government offices. They tend to have good references as to setting up an LLC, and some may even have names of CPAs and such to help you get started.
References :
December 26th, 2009 at 9:46 pm
Dear Elle Elle Cee,
First, it really depends on what State you’re in. Believe it or not, each state has their own website (i.e. http://www.nv.gov for Nevada). You can go to your state’s website and download all of the paperwork that you need to start your company. The first step is deciding in your business name and then using this State’s website to do a search to see if the name has been taken (each state website has a business name search). You can also get a copy of a typical "Operating Agreement" either from your lawyer or just by doing a simple search online (search words: operating agreement, sample).
Most of the forms that you need are rather easy to fill out and you’ll need to submit them manually… Believe it or not, each state has a toll-free number that you can call to get help with filling out the forms. Once you have reserved your business name and filled out / submitted your forms, the next thing you’ll need to do is to obtain an EIN number (some people call this a Tax ID). You can get this directly from the Department of Treasury (better known as the IRS). I’d call them directly (versus applying online) and they can issue you the Tax-ID right over the phone. Free of charge of course… Getting this Tax-ID is crucial to opening up your business accounts at your local bank.
If your paperwork has been filed through your lawyers office, or if you’ve done it on your own and the State has recognized your business name (you should have received a notice), then you can start to conduct your business. The following step would be to open up your business accounts. In this step you’ll need the following documents (bring them with you to your bank):
1) Articles of Organization
2) Tax ID
3) Operating Agreement
4) Fictitious Name Statement (if applicable – sometimes not needed).
Once your business accounts have been opened the next thing you’ll want to do is, ask yourself how you will accept payments from clients and customers? If you’re going to accept VISA/Master Card, Debit Cards, etc., then you’ll need to ask about Merchant Services. Sometimes your bank can set this up for you along with your depository accounts. I highly recommend setting it up with your bank because in many instances they will give you an additional benefit (like free accounts or even next-day business funding).
Here’s another tip, when you’re ordering your business checks ask the company that is printing them if they can create your business cards as well? Sometimes combining this order will give you a discount and as a new business owner, you’ll need all the discounts and free services that you can get. A good company to have both checks and business cards printed is with McBee.
Lastly, what’s your target market? What’s your service or product that you are trying to sell? Are you going to be a home based business or a retail store or work out of an office? In order to help you with what your next step is, we’d need to know what it is exactley that you are trying to do to generate income.
Since we don’t know, I would recommend building a website – you can do it for free right here on Yahoo! Even if the website just has basic information, you can use it as a reference tool to market to prospects.
My last piece of advice is, sit down and calculate what your income will be versus how much time and personal expense you are going to invest into this venture. Take into consideration all the aspects of the business and the types of resources that you have at your disposal. Do a small financial statement that lists all of your expenses versus your income. Do you show a profit? Are your numbers realistic? Are you paying yourself? Most structured businesses break even in the first year.
When looking for a CPA, ask the CPA what kind of clients they prefer to work with. If you’re a small business-single owner, then you’ll want a local CPA office to work with to help you write-off work related expenses. Again, your local telephone book is probably the best source – pick up the phone and ask them directly, "I am a small business owner and I need a CPA – what are your typical fees?" Some CPAs will charge you a flat fee per year (this allows you to talk to them at anytime throughout the year), while others charge an office fee or a filing fee.
I’d definitely talk to a CPA and mull over some of your ideas to see where you can get tax-breaks and also to see if the LLC is suitable for the line of work that you are proposing. You might find that you need a corporation instead and talking to the CPA should ultimately be your first step. Then, you talk to the lawyer to draft up the documents (assuming you’re under a time constraint and can’t do so yourself).
I hope the steps above helped you!!! They are the first steps that all business owners take in getting up and running.
Good luck!
~A.R. Pouretezadi
References :