What It Takes: Things to Know When Starting a Business
Please note: This is just my personal experience with this. I am in no way giving legal advice.
I Want To Start A Company!
Deciding to start a company is extremely exciting! After all, it’s filled with new possibilities whether that’s experience, money, or even just a change of scenery. However, before you get to those new possibilities, there is tedious work you have to do: paperwork, paperwork, and more paperwork.
I didn’t know how to go about starting and launching a company in the slightest. My hope was just to be able to say “I have a company,” do some praying, and everything else would fall into place. Unfortunately, that’s not how life or owning a company works. So if you are interested in starting a company but don’t know where to start– I will give you all the details needed.
The First Steps
Before I begin, I want to put out a slight warning that there are a lot of scam websites out there when you are looking up registration for these things. Make sure that any website you are on ends in “.gov”.
The first step to starting a business is registering your company as an LLC (Limited Liability Corporation) with your state. You do this by going to your Secretary of State website. I am from Mississippi and that is the state that I run my business from so I looked up “Mississippi Secretary of State” website (who is Michael Watson), then I clicked “Business Service & Regulation” then “Forms and Filing.” From there, I registered for an account and that is when you can fill out the forms to register your company. You will have to pay a small fee to register.
After you register your company, you will receive an email with several different number codes. It is important to have all of these written down. I recommend making a Google Doc and writing down your official business name, Business ID number, Tracking number, and NAICS (North American Industry Classification System) number. An NAICS number is the category of your business. I have a marketing firm which falls under marketing so my number is 541613. You choose this yourself from a list the government provides.
You also need an EIN number which is something you need to register for on the US Government’s IRS website (not on the Secretary of State website).
Money
To be able to make money and pay taxes, the EIN number is imperative. After you register for your EIN number, the IRS will give you an official document with the EIN number (the font will look like a font from a typewriter). Download this document immediately and do not exit out until it is saved to your device and is easily accessible. It will be extremely difficult to recover this document once you have exited out. I say how important this document is because you will not be able to open a business bank account or pay your business taxes without it. Registering for an EIN number is FREE, so if you are on a website that says you have to pay, it is a scam (make sure the website you are on ends in .gov).
You will also want to open a business bank account because this is how you pay your taxes for your business. To open the bank account, you will need your EIN documentation and a document from your Secretary of State showing that your company/business is in good standing with the state. As far as I know, you can log onto the Secretary of State website after the fact and download it.
Another important thing to consider when opening the bank account is your business address. The bank will ask for the address where your business is located and registered with the state. If your home and business addresses are the same, the bank will request proof that you live there (e.g. a bill or mortgage payment). I live at home with my parents who pay the bills so there are no bills with my name proving that I live there. Because of this, my dad had to cosign and be on my business account since he has proof that he lives at my address. Even though it is annoying that you don’t fully have control over your business if you are not living on your own, having a cosigner is a necessary part of opening the bank account.
It Will All Come Together
I know this feels like a lot of information to take in, but honestly, it comes together very quickly. After the paperwork is done, that’s when all the fun stuff starts like networking, building a website, setting up your social media, etc. The paperwork is just a necessary part of your business being strong and successful. Having all of this legal documentation gives you and your business legal protection and rights. If you do not register with the state and someone sues you, there is no legal protection. This is why having the right documentation and registration are vital for the protection of your business.
Starting a company and business is such an exciting yet nerve-inducing experience, but I promise you will find your way. Of course, if you need any marketing assistance, Recently Media is here to work with you! Best of luck with your entrepreneurial endeavors!