How to Grow Your Business
When you decide to launch a small business, it will require a lot of hard work. But the more hard work you put in to it, the more tremendously rewarding your business experience will turn out to be. Having planned out a complete business endeavor, the next step involves meeting all the legal requirements as outlined by your state. These involve paying filing fees and acquiring articles for your incorporation.
Whether to form a corporation, sole proprietorship, partnership or a limited liability company (LLC) can be best discussed with an attorney. But whatever you choose to do, once you start on a business the internal revenue service (IRS) will provide you with an Employer Identification Number (EIN).
Obtain your Tax ID / EIN
Employer Identification Number (EIN) is also known as Federal Employer Identification Number (FEIN), Taxpayer Identification Number (TIN) or simply a Tax ID. It can be obtained either online or by personally contacting IRS. When you personally contact the IRS, one of their agents will help you require your Tax ID or you can get a Tax ID online. After you have acquired your nine digit tax identification number, you will be allowed to carry on with your business. This is the number you have to use henceforth in the place of your social security number to represent that you own a separate business account.
Capitalize your Business
After having your business registered with the IRS and obtaining your EIN, the next step you need to take it to capitalize your business. You are now eligible to take loans and under your EIN and business name, open a bank account on your business’s behalf. A tax accountant might even help you transfer your personal assets to your business should you want to do that. The possessions you wish to move usually involve office furniture and other supplies and your car to your business.
Formally Open Your Business
After having acquired a tax ID, location established, employees hired, office furniture and setup created, money funding your business, and marketing strategy launched, you have half your business dream turned to reality. Open your business and conduct all of the business transactions through the specific Employer Identification Number (EIN) provided to you by the IRS. File the federal tax, stack of state, regular administrative forms with your business tax ID so that you have all your business related information under one ID.
A useful general tip for all novice business starters is that even though you will find a lot of banks offering you to open business accounts on your social security number, never sign up for any such thing. Once you get your business account registered with IRS and acquire your EIN, your business becomes a lot more formal and saves you from a lot of complication that you might come across at the time of filing your taxes should your personal and business revenues mix with each other. This can also hold you personally responsible for some debts in the event of bankruptcy.