The following are the key steps in starting your own company- an LLC or an Inc.
1) Selecting the right entity structure : It is very important to determine if you would like to start an LLC or an Inc. There are various important tax and legal implications. Therefore, ensure you consult with a qualified tax or legal professional before starting the incorporation process.
2) Selecting the state to incorporate : There are various options available. The most popular choice is Delaware. Majority of the fortune 500 companies are incorporated in Delaware. The state also has no sales tax and low franchise tax for small businesses. The delaware corporation law is also one of the most advanced. You dont need to reside in Delaware to start a company in Delaware. You can choose the various registered agent services if you are not a resident of Delaware.
The other popular choice is always the state you reside in. Check with a qualified tax professional or an attorney before selecting the state for incorporation.
3) Choose Governing members, registered agents and managers: If you are not a resident in the state you are incorporating in, you can select a registered agent. Registered agent are appointed to receive all postal correspondence from state and outside agencies. They will scan and share all compliance documents on a timely basis.
4) File Articles of organization : Each state may again have different forms, so ensure you download the most updated copy from the state website.
5) File for employer identification number (EIN): This is a service provided by IRS. Ensure you clearly indicate your industry, if you are going to hire employees within 12 months as provided on the form SS4. Its important to carefully complete this form to avoid any errors.
6) Create an operating agreement : Operating agreement is a document that provides information on rules & responsibilities of members & ownership information. If you have purchased a corporate kit & company seal, ensure you complete these documents and send it to all the members.
7) Open a bank account: Ensure you open a separate bank account so all business transactions can be kept separate from personal.
8) Hire a professional team of certified public accountants, attorneys to assist you with ongoing business needs.
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