If
you are planning to start a business
don't forget business regulations....
Most small
business advisors recommend that you at least file a
name, a Business License or Permit and Get a federal tax
id.
If you already decided
on the type of service or product to sell, you are ready to
start your business. The next thing you need is to choose a
legal business entity:
There
are
advantages and disadvantages of
sole
proprietorship,
partnership and
corporation.
However, if you are ready to operate
your business,
just go ahead and
First, file a
Business Fictitious Trade Name or Incorporate
Your Business: If you do business in a
Business Fictitious Trade Name (e.g.,
Carpet Express)
other than your personal name
(e.g., John Smith),
you are required to
register and
publish a
Business Fictitious Trade Name ,
or
Incorporate.
Benefits: You need a business
name statement certificate or a
corporation certificate so you can
open a merchant or business bank account,
discourage competitors from
using your business
name, and enforce contracts you entered into
under the Business Fictitious Trade Name .
Third,
in California (CA) , you need a
State Tax Id Number: EIN Employer ID,
if you have employee (s).
So, if you don't have employees, you
don't need one. Note: you must
have a federal Tax Id Number before you can
Get a state Tax Id Number.
Fourth,
A
Resale License:
same as a
Wholesaler's or Retailer's Buyer's License, Sales Tax Certification,
Wholesale License -- you need
a Wholesale License if you buy or sell
wholesale or you sell retail - you don't
pay taxes when buying wholesale.
Example, you sell computers or clothing
online in California (CA) .. you need a
Wholesale License to buy wholesale tax
free. When you sell, you charge
taxes (collect taxes) to pay to
government later.
Business License or Permit :
All businesses
need a Business License or Permit . This is the
same as business tax registration and it
is not the same as a business
name. Note: you need a
Business Fictitious Trade Name to open a bank
acount - not a
business
license.
See
a Table of Required Documents
