Starting a Very Small Business - Part 4 - Startup Paperwork

For every business, even a small one like the one my sister is starting, requires some paperwork. For a sole proprietorship, the paperwork is usually limited to getting

• A business checking account
  
• A D/B/A "fictitious name" statement for sole proprietorships that are operating under a different name from that of the owner, and
  
• An Employer ID Number, for businesses (including sole proprietorships) that hire employees.

Since my sister decided to make her business a limited liability company, she didn't need to do the D/B/A filing, since registering the LLC takes care of this. She did get an Employer ID Number, because she plans to hire her daughter to help her in the business.

I created a how to article that helps you fill out the Application for an Employer ID Number (on Form SS-4), for her, and for you.

She also needed to complete the LLC application, called "Articles of Organization." The content of these articles is different from state to state. Go to the website of your state's Secretary of State/Business Division and find the requirements and the cost (usually $100 or less). Send off the Articles of Organization and a check for the filing fee, and you're set. Well, not quite. There are still some state and local taxes, licenses, and fees to take care of. We'll talk about those tomorrow.... In case you missed the previous posts: Day 1: Is this a Hobby? Day 2: Choosing a Business Type Day 3: Liability and Insurance Issues