If you decide on an online home based type of business, you need to adhere to some regulations that pertain such an enterprise. One of the first things you may need is an Employer Identification Number (EIN).
In addition, you need to register the business by filing in a complete form called FBN (Fictitious Business Name) or the DBA (Doing Business As).
This is basically determined by the state where the company is being established, essentially where you need to apply for the essential licenses and permits as may be required.
Though the whole process can be very expensive and in need of legal advice, you will find that there are many benefits of incorporating your business, whether it is for a small business or large corporation. Below is a guide to help you in forming a business LLC and EIN Number so you can make bulk orders:
Apply for an EIN
You will need to apply for an Employer Identification Number (EIN) to identify your business. By researching online, you can receive an EIN for free. There are different forms for different types of businesses, but the forms are simple and easy to fill out. The purpose of the EIN is for IRS to identify your business for tax and business purposes. Also check out Tax ID Number Online.
Turning your business to LLC
Individuals that are filing by themselves would be considered a Sole Proprietorship. With a Sole Proprietorship, you are liable for any lawsuit that happens to your company and will affect you personally.
However, if you have a partner or a board than one of the options would be Small Business or Limited Liability Company (LLC). As an LLC, whatever happens to your business will not affect your personal assets. Each state has different business laws so make sure you do your research on which form is best for your business..
The process of incorporating a business
There are many websites and companies online that will help you out in filing your company. Always get legal advice when it comes to your business. LegalZoom is a very easy and simple way to incorporate. They will help you step by step on filling out the forms and also give you advise on which form is better for your business.
LegalZoom offers payment plans too. And you can check your status online as the paperwork is stamped and shipped. You will receive a portfolio with your company stamp, member forms, a CD with business forms and much more. Do your research to make sure this is right for your business.
Benefits of LLC and EIN Number
If you incorporate your business, you have many taxes and small business deductions. Even if it’s a family business, you can split the income and keep it within the family.
Some companies such as Filing.Solutions offer an LLC and EIN State and Federal filing package online Click Here
Many people prefer to work with companies that are incorporated because it shows that the company is stable. Suppliers will be willing to allow you to make bulk orders while more traffic of customers will be able to purchase from you, which brings an increase in your business.
International customers may be required to obtain an Individual Taxpayer Identification Number (ITIN) in some cases if they wish to buy and sell bulk order goods within the United States of America.
We suggest hiring IRS approved Certifying Acceptance Agents (CAA) online to assist with your ITIN application as they make the entire W-7 Form processing process online and very easy.
Though it can be costly and it may seem that there is much more paperwork than expected, but, in the long run, you will find that incorporating your business will bring you an increase in clients and also the satisfaction of having your company grow.