If
you are planning to start a business
don't forget business regulations....
-
You are required to have a
business
license or home occupation permit,
-
You are
required to file and publish a DBA / fictitious
business name if you use a business name different
from
your own personal name,
-
You are
required to have a sellers permit if you sell
taxable items, and
-
You are
required to have a federal tax id if you are a
corporation or you are an employer.
-
You also are
required to have a state ein employer number if
you have employees.
Most small
business advisors recommend that you at least file a
fictitious name, a business license and obtain a federal tax
id.
If you already decided
on the type of service or product to sell, you are ready to
start your business. The next thing you need is to choose a
legal business entity:
There
are
advantages and disadvantages of
sole
proprietorship,
partnership and
corporation.
However, if you are ready to operate
your business,
just go ahead and
First, file a
Fictitious Business Name or Incorporate
Your Business: If you do business in a
business name (e.g.,
Carpet Express)
other than your personal name
(e.g., John Smith),
you are required to
register and
publish a
Fictitious Business Name,
or
Incorporate.
Benefits: You need a fictitious business
name statement certificate or a
corporation certificate so you can
open a merchant or business bank account,
discourage competitors from
using your business
name, and enforce contracts you entered into
under the business name.
Third,
in California, you need a
State Tax Id: EIN Employer ID,
if you have employee (s).
So, if you don't have employees, you
don't need one. Note: you must
have a federal tax id before you can
obtain a state tax id.
Fourth,
A
Resale License:
same as a
Seller's Permit, Sales Tax Certification,
Wholesale License -- you need
a sellers permit if you buy or sell
wholesale or you sell retail - you don't
pay taxes when buying wholesale.
Example, you sell computers or clothing
online in California.. you need a
sellers permit to buy wholesale tax
free. When you sell, you charge
taxes (collect taxes) to pay to
government later.
Business License:
All businesses
need a business license. This is the
same as business tax registration and it
is not the same as a fictitious business
name. Note: you need a
fictitious business name to open a bank
acount - not a
business
license.
See
a Table of Required Documents
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