How do I open my business

When starting a business, one of the biggest questions that I get is where do I begin? It is simple, by making it official! There are some steps to take when opening your own business. These steps may vary depending on state and county, however there are some general steps to take no matter where your business is located and what structure you choose for your business. This means getting your company opened and all the right paperwork and process in place. So what are those steps to begin? Let's dive into this to make this overwhelming feeling of where to start a bit more simpler.

“When starting a business, one of the biggest questions that I get is where do I begin? It is simple, by making it official!”

Step 1: State's Division of Corporation

In order to open your business, the first step is to go through your states Division of Corporations. Each state is different, but for this blog I will be using Florida as an example. In this step is a matter of choosing which structure you choose for your business. We will be going through all structures in detail in another post to assist you in choosing the right structure for your business.

When registering your business, the fee you pay will be determined by which structure you choose. Once your application for your business has been processed, which usually takes anywhere from 3-5 business days, you will receive your AOI (Articles of Incorporation). This is the first step you need to register and open your business.

Step 2: EIN Registration

Next step is to register your business with the IRS. Just like you have a social security number for yourself personally, the EIN or Employer Identification Number is the social security number for your business.

You apply for this through the IRS website. Keep in mind that this step is FREE. There are many fraudulent websites out there that will charge a fee for applying for this.

Step 3: Additional paperwork

Depending on where your business is located, it might require you to apply for additional paperwork. There could be county licenses you would need to apply for especially if you have a physical location.

If you are selling a physical product, it might be to your added benefit to apply for Resale Certificate of Sales Tax. This step is done through your states Department of Revenue. This certificate will allow you to purchase product that you re sell to a customer but you do not have to pay sales tax on that product. Find out if your business should apply for a resale certificate for your business.

Step 4: Open your bank account

To open your business bank account, the AOI (Articles of Incorporation) and the EIN (Employer Identification Number) are needed. Take these 2 documents to whichever bank you choose together with your I.D. and you can open your business bank account.

Why is this needed? By opening a business bank account for your business, you are separating everything personal from business. This will allow you to differentiate between both and organize yourself and your business better.

Step 5: Your accounting system

It is highly recommended for businesses to start correctly from the get go. Think about it, in reality if you get everything going correctly from the start, it is a set up for success. I know what you will say, why add that expense of an accounting system at the beginning of your business when I don't have many transactions. Well, I am here to assist in telling you that there are free options for you to get going. Wave Apps is a great option to begin with as it is free and it allows you to do many things to keep you organized without you having to pay any money.

Connect your business bank account with your accounting system, keep track of any and all expenses that are business related and keep track of your business from the very beginning.

Starting a business sounds more complicated than what it actually is. The simple steps above can get you going on your journey. Each state, county and business structure has steps that are needed for each. To find out more details on what you would need for your specific business, speak to a JNA Firm specialist that can help you with the process.

As always, sending positive vibes your way 🙏

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