How to begin.....

[chem]

Okay, I have read all over the net and I'm trying to learn. I feel I have packed WAY too much in this oh so little brain of mine!

Anyways, what are the steps to legaly setting up your business and how do you go about doing it. I live in Ohio by the way.

So I know I need to...

Register the name
Register as a sole prop.
get a service vendors liscene
get a Eployee Identification Number

I'm sure there is a lot more to do, what all am I forgeting?

I spoke to a lady at The Chambers of Commerce and she set me up with this one man, but he's so hard to get ahold of.

Thanks!

[dvduval]

I assume you are going to be selling a product locally?

By default, you are a sole proprietor without even registering a license.
And LLC might be worth exploring, because it allows you to have some protection from lawsuits that you would not have as a sole proprietor.

[chem]

My business is like a myspace and a modeling agency wrapped in one. It is local, all the models will be from the area or near by areas.

I have read into LLC's some and talked to my boss(sole proprietor) and he said it's not worth it to become an LLC. I have talked to others and they said start as a sole proprietor and it you're succesful look into corps and llc's.

Right now I'm starting it alone with my girlfriend working for me. Then if we become successful we'll register as an LLC together or we may come along a partner who would llc up with me.

But right now I'm looking for what to do as a sole prop.

I can get a business consultant for $50 a month plus my girlfriend's father is an intelligent man and an accountant so he'll be able to help me also. So I want to goto him with ALL my business stuff and sit down with him and fill out the paper work.

Thanks

[HPC]

I'm pretty sure you have to register your business within the state. Look at your Ohio government site for all the forms.

After that, you'll probably be getting mail every month approximately (depending on what you do) to report your earnings and pay your taxes.

Other than that, practice good bookkeeping skills.

[artdrops]

You will need to fill out a Ficticous Name form. Also some cities require you to file for a Business Privledge License, just to be able to do business in that city.
I have an LLC and I would highly suggest doing it. Along with certain tax advantages, it is low maintenance compared to other corporate structures (s corps, c corps, etc..) let alone the corporate veil which can protect your personal assets.

[ocomys]

Hi chem,

I've started a partnership in the past and an LLC more recently...both in Pennsylvania. When I was starting the partnership I was much like you, wondering all what I had to do without going to a lawyer.

Here's what we got for our partnership (which was a web design firm):

County business license (cost: $25) - Went to the courthouse, filled out a sheet of paper and got the license. This is for operating within your city/county.

Registration of Fictitious name (cost: $70) - This is your company name. You don't need to register under certain instances where you're using your name within the company name (such as Johnson's Bait Shop)

Run notice in local paper and legal pub (cost: $202) - Here, you have to let everybody know your doing business in the area. We just called our local paper and inquired about it, she sent us a form and recommended the legal paper and gave their phone #. I then contacted them as well and did the same.

Acquire EIN (cost: $0) - Just called the IRS and 10 minutes later had the EIN. For a sole proprietorship, I'm not sure if you need an EIN. I believe you can use your social securitry number....unless your going to have employees. Double check on www.irs.gov.

With a sole proprietorship, you'll be reporting your income/losses right on your 1040. All in all....yes, it's going to be easier and cheaper to setup a sole proprietorship. If you're comfortable with being liable, go that route. You can convert into an LLC later pretty easily. If & when you do decide to form an LLC, consider places like http://www.mynewcompany.com/ They file everything with the state for you, create your articles of incorporation, etc for around 200 beans total. If you need any specific advice regarding anything, hit me up on aim: ocomys

Anyhow, hope I haven't left anythign out. Good luck.



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