Filing Requirements (Applies to All Businesses Including Online, Mobile, and Home Businesses
To form a business, you must select a business legal entity structure
You have to select from sole proprietorship, partnership, LLC (Limited Liability Company) or corproation.
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After selecting a structure, you need to get licenses and tax IDS
You need to select the structure first because the licenses and tax IDs will be filed under the structure. E.g., if LLC, filed under the LLC etc. You will need at least a ubsiness license and an EIN.
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Tax Filings
You will need an EIN and if employing anyone, a state EIN as well. If want to buy items wholesale or sell retail, you will need a reseller ID ( seller's permit).
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Employers need both a federal EIN and a State EIN.
This is because you need to pay both federal and state employment taxes and withholdings.
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When Selecting a structure, you will need
a DBA for sole proprietor or partnership. If filing as an LLC or Corp., a corp certificate or LLC certificate.
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If filing an LLC or Corp., you don't need a DBA Filing
If you set up an llc, you don't need a dba because a dba is the Filing of your business name. If filing an LLC, you also File ing the business name.
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You can file a DBA under an LLC or corporation
If you going to use more trade names, you can file them on the same dba or file dbas under the LLC or corporation.
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Partneships that do not incorporate or form LLC
Partnerships that do not set up as LLC or Corporation, need at least both a DBA and an EIN.
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New Business Information
Selecting a Business Structure
If you are going to make any serious money such as more than $50,000 per year, you may want to form an LLC or coproration. It is the best to help you save on taxes and protect you from personal liability.
How does an LLC protect my personal assets?
If you file as a sole proprietor, you will be liable for all business debts and liabilities. For example, you have a cleaning business and your employee steals from your clients, you will be liable personally. If you
form an LLC, and the same thing happens, your personal assets, such as your home and car are protected. If sued, they can only get what the LLC has. If only $1,000 in the bank, that is all the plaintiff gets.
Where is the best state to incorporate or form an LLC?
Even though they will tell you that Delaware or Nevada is the best state, the best state is actually the state you do business in. This simplifies the entire business.