Step #3 – Setting up your business.
If you are going to market your product, collect money from customers, and deliver a product… you need to legitimatize your business. Contrary to popular belief, you can’t expect to run this “under the table” and set yourself up for success. If you are serious about setting up the right foundation, here are the items you need to complete.
#1 – Business Name – 2 Elements
Seems obvious, right? Yes, you need a business name…but there are two elements to a business name. What the Government know you by and what your customers know you by. These can be one in the same if you so choose, but it’s not required. When you register your business you can list your Legal name and also a “DBA” (doing business as) name. In other words, you could list “Groupo Breaker Enterprises LLC” as your legal name, and “Groupo Breaks” as your DBA.
This is important to do early on in the process, because revising paperwork isn’t fun.
As for the name, remember to choose something that you want to repeat over, and over, and over again. Use the name as something that summarizes your business and hopefully captures your style. Having “Breaker” or “Breaks” is great because it’s searchable and relate able…but it’s not necessary. Your name is an incredibly important asset so think through it carefully.
After you find your name (or names) – make sure they are available. You can check the database HERE.
#2 – Get your Website – Seriously. Do it.
Do you want to be reputable? Do you want buyers to feel at ease when they visit your page? Yes?
Well, I can’t stress this enough. Buy yourself a domain. Even if you are slowly moving into this world the $10-$20 investment is worth it. Here’s how easy this is:
– Go to Bluehost.com HERE
– Search and Buy your domain
– Sign-up for their hosting for $6 a month. (cost of 1-2 pack of cards)
Get your domain name for your company. You’ll then have your spot locked down. You’ll have an email address with your “@groupobreaks.com” domain. You’ll have the flexibility to control your business via the web. This is a big deal, IF YOU WANT to do this right.
#3 – Register your Business
You have your name picked (and verified). You have your website. Now it’s time to register your business. This thought overwhelms many folks, but it’s really a simple process. Here is the process:
- Register your business online with your State. You’ll head to your State’s Department of Revenue/Commerce site and “REGISTER A NEW BUSINESS“
- You’ll complete the process, and set-up a new LLC (Limited Liability Corporation).
- Depending on the State it will cost anywhere from $65 – $145 – one time fee.
- Depending on the State it will take 1 to 24 hours to process. Once complete you’ll get your RETAIL TAX CERTIFICATE
- Proceed to the Federal EIN Registration HERE
- Click “Apply Online Now” Register your LLC with the IRS and get your Federal EIN (Employer Identification Number). It’s free and instant.
Why is this an important step?
Simply put, don’t try to skate around doing the right thing. Having a registered business protects you against potential legal issues, presents you correctly with the IRS, and gives you peace of mind about your business. In addition, if you do reach a point of wanting to sell your business or add a partner, you’ll need to be legitimate.
#4 – Create Bank/Paypal/Square Accounts
Now that you have you business set-up correctly, it’s time to get those banking accounts registered. You’ll need a bank account registered under your business name. This is important because you’ll potentially be depositing checks (yes these still exist) and PayPal transfers from your business account. These need to be in-sync.
If you have a PayPal account already registered, you can update with your business information. Or if you want to delineate the two, just set-up a new PayPal account.
I mention Square/Stripe because of their growing popularity. I still default to PayPal but the never-ending integration with eBay can cause problems. It’s not fun seeing your funds on “hold” while they investigate an eBay issue. It’s likely worth the risk because of the ease of use, but Square/Stripe would be preferred if you accept direct payments on your website.
As for Bank Accounts. For all of my businesses I’ve grown akin to using Online Banks. Technology makes it SO easy to set-up, maintain, and grow your online banking account. Here are the 3 that I’ve used and would recommend.
- Capital One Spark Business Banking
- Ally Business Banking
- Bank of America Banking
When you register a Business Checking account you’ll need to have all of your LLC/EIN information ready. The set-up should be straight-forward and quick.
And there you have it. In somewhere between 60-90minutes you have yourself a legitimate business; with web domain, bank/financial accounts, and IRS/Federal registration. Now you can start working on the fun stuff… your Group Breaking business!
Step #4 – Technology for your Breaks.