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Small Business Legalities

Discussion in 'The Lounge' started by Resurrection_Joe, Jun 1, 2005.

  1. Resurrection_Joe

    Resurrection_Joe 1 ton status

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    What are the thing a person in SD would need to run a small business. What are the forms and costs involved?

    Thanks
     
  2. newyorkin

    newyorkin 1 ton status

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    Your state should have a web site dedicated to these questions. You don't actually have to register through your state, too.

    Also, seriously consider buying a book or two that will go in-depth into developing a business plan and good business accounting practices. If you can't put together a business plan, you probably shouldn't try to run a business. This is something I have to work on... But once I figure out what I want to do, I think it will be pretty easy to figure out.

    I've been looking into S-Corporations and LLC's for myself. Contemplating registering an S-corp through Delaware state for the more pro-business attitude they have, although New York's laws don't seem too bad, either.

    My problem at the moment is that I don't know what kind of business I want right now...
     
  3. Resurrection_Joe

    Resurrection_Joe 1 ton status

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    I'm thinking of a one man, at home, type thing, just for more info
     
  4. 4by4bygod

    4by4bygod 1/2 ton status

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    Check out the webpage for your sec. of state. That office should have a package they send out that explains the basic differences between sole prop, LLC, Corporation, etc, and also will have instructions for registering your business name with the state. Otherwise, I second what Ratch said. study up on tax regs and the nuts and bolts of successful business startup.

    Tom
     
  5. Bubba Ray Boudreaux

    Bubba Ray Boudreaux 1 ton status

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    Ah yes, this question does bring the sucketh cause answers can be hard to find and very from state to state.

    There's places that require business licenses from the city, there's places that require sales tax permits from the state and then some places that require a Fed ID Number; even though the Feds may not require it.

    Here's what I'm going through in my instance. I've applied for a Fed #. Even though they state I don't need one because of the level my company is going to be at, I have found out that some companies, if you want to sell their product, require this. Also, in this state, I have to apply for a state sales tax permit. That right there is $20, but the Fed # is free. Hopefully I will have both those things in the near future so I can get going on this venture.
     
  6. cbbr

    cbbr 1 ton status GMOTM Winner

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    In my opinion, anyone serious about going into business should consult a local business attorney, insurance agent and maybe most importantly, an accountant for advice on how to get started and do it right. I see many, many businesses fail doing what I do and most of them fail not because they had a bad idea, or doo poor work, but because of poor accounting and a lack of knowledge regarding business structure, fees, taxes, insurance, etc. read all the information that your state provides, talk with the local taxing authority and then get some advice from a pro. Just my $.02.
     
  7. mr_blasto

    mr_blasto 1/2 ton status

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    I did a similar thing a little while back. My dad is a CPA so he kinda told me what to do. I was in CA so things might be slightly diferent, but by and large they should be about the same.

    1. Definitely get a tax ID number sometimes referred to as an Employer Identification number (EIN). Some businesses will not sell to you unless you have one. It is free, takes less than 10 minutes to fill out the form... piece of cake.

    2. If you are reselling something you will need a sales license, but with this license you have to keep pretty good books and report quarterly (I think?). Kinda a pain in the butt, but you can get great discount on all sorts of stuff (I was operating a service based business so i didn't need one).

    3. I got a business license for the city I live in. One trip to your city hall and they should be able to tell you if you need one, again it doesn't take much time, but I think they asked for my EIN - but I don't remember for sure. The first year it cost around $100, but after that they base the price as a function of revenue or profit (again I can't remember).

    4. If you want to open a small business bank account, which you almost have to do, the bank might ask for something that proves you are a business (I am not sure what constitutes proof, but I showed them a "ficticious name statement"). With this you will have company checks, a company debit card, possibly a credit card to if you are approved, and is a great way to keep your business seperate from your personal finances.

    5. I mentioned the ficticious name statement above which maybe required from various parties. To do that all you do is run a tiny add in the back of some newspaper that states your company's name (it might also have to have phone number and/or address or something like that). Save a copy of the paper, and there is your ficticious name statement.

    6. Structure - as mentioned above you can setup an s-corp, c-corp, LLC, partnership, etc. You need to decide what works best for you. The easiest and I am assuming most applicable structure is to run the business as a sole proprietor (meaning one owner). Far less paper work, much greater simplicity, and TOTAL LIABILITY. If people come after your business with a law suit or looking for money in any other way, you are totally liable. With the other structures you can limit your liability. To my knowledge there is no paper work or anything like that involved in a sole proprietorship, you just say that is what you are and people say... ok (pretty simple).

    7. Depending on the scale and nature of your business you might want to look into insurance, getting an accountant, lawyer, etc, but it is not required to start a business. I never did any of that stuff.

    It is really a simple process. Heck if I can do it anyone can. As mentioned earlier a business plan is a great place to start, but you don't "need" one. Also keeping good books (accounting) is highly recommended, but you don't "need" to. If you have any friends or family friends that are lawyers, cpa's, bankers, or in insurance, talk over any concerns you might have with them. Feel free to IM me. I have started a company in the past and will definitely start another within 24 months. Good Luck!
     
  8. gjk5

    gjk5 3/4 ton status

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    Start with the secretary of state website, Colorado's is so easy you can incorporate online and do all of your state filings including your trade name registration all for under ten bucks. Start there and if your lucky it's that easy, if not it's not like you never spend time dicking around on the interweb anyway.
     
  9. smalltruckbigcid

    smalltruckbigcid 1/2 ton status

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    One other thing

    Keep your business account and personal bank accounts at different banks, one at wells fargo and the other at us bank for instance. If you run into legal problems its harder to sieze both of the accounts as long as the names on them are different. Friend of mine found that out the hard way.
    George
     
  10. big pappa b

    big pappa b 3/4 ton status

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    You're not gonna make tube doors are ya? I don't think it would be very successful :haha: :haha: :haha:
     
  11. Resurrection_Joe

    Resurrection_Joe 1 ton status

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    The product rocked, it was just a bad customer base
     

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