After you’ve incorporated, you may be wondering what other steps you need to take in order to establish your new business. Here are a few checkboxes you’ll need to tick off before coming to market.
Apply For A Federal Tax ID Number
Whether you were operating your business as a sole proprietor before incorporating or if you’re founding an LLC, S Corp. or C Corp. as part of a new venture, you’ll need a Federal Tax ID number. Alternately known as an Employer Identification Number, Federal Tax ID numbers are effectively a business’s Social Security number. Without it, you won’t be able to open up a bank account in your business’s name or file taxes, so contacting the IRS to get one should be your first step after incorporating.
Trademark Your Name
After you have received a Federal Tax ID Number, you need to trademark the name of your business, its motto and its logo, if you have one. Doing so will help you establish yourself in the marketplace by ensuring that no other business entity can use your company’s intellectual property. It’s also a good idea to register a domain name for your company for the same reason.
Establish Your DBA Entity
In order to open up a bank account or line of credit in the name of your business, you’ll have to register its name with either your county clerk’s office or your state government. It’s also necessary to perform a “Doing Business As” (DBA) filing if you want to put any permits or licenses under the name of your business.
Set Some Ground Rules
Whether you have an LLC or an S Corporation, you’ll need to establish a few basic rules regarding the operation of your company. During this process, you will define your company’s mission statement, its officers and shareholder rights. Legally, your corporation does not exist until you’ve established either an operating agreement for an LLC or bylaws for an S or C Corp.
Establish A Buy-sell Agreement
While it probably won’t be the choice of any entrepreneur to discuss worst-case scenarios just as they establish a new business, it’s something that has to be done. In the event that a partner leaves the company, either voluntarily, involuntarily or by death, you’ll need a buy-sell agreement in place to deal with that situation. This will prevent relatives of the departed partner from assuming ownership of part of the company without the approval of the remaining partners.
In order to do business as a corporation, you will need either a license or permit from one or more government entities. As the regulations regarding business licensing vary state-by-state and industry by industry, you’ll want to check out the U.S. Small Business Administration’s website. It has a comprehensive listing of the different licensing requirements you’ll need to fulfill.
This article was written by Mario McKellop of Examiner.com for CBS Small Business Pulse.