Every week, something new always crosses our desks. This week, what crossed our desks was a question: How do I set up my own small business?
There are three first steps to take, and they must be taken in a particular order.
The Three Steps to Start a Business in the Right Order
Step 1: Register with the State
Your first step is to register your business with the state and pay the registration fee to the state. Most people use their state of residence when registering. Registration only takes a few minutes, and the state usually approves everything in just a few hours to a few days.
Step 2: Apply for an Employer Identification Number (EIN) with the IRS
Next, visit the IRS website to obtain an EIN (Employer Identification Number) for your business. Think of your EIN as a social security number for your business. You will receive your EIN online in a matter of minutes.
Step 3: Choose a business classification for tax purposes
Once you register with the state and acquire an EIN, it is then time to designate your business for tax purposes. For example, designations include an S Corporation, a C Corporation, a Partnership, and more. Additionally, a proper business structure can save you money and enhance life and business.
Are you ready to take the next step without the guesswork?
Shank & Company has guided many business clients through the process of starting their own business and helping them get set up for success.
Reach out to us today to get started!
