Starting Your Business Right by Setting it up as a company
(No Ratings Yet)
Loading ...
I think that when we are talking about dealing with wholesalers, dropshippers or importers and exporters, it is best to set up a company, formally and officially. You can do this with a lawyer or sometimes an accountant will do it for you. This sounds weird but I would probably ask an accountant what to do in your state and then have a lawyer set it up. You can set it up yourself, but you need to be prepared to learn about the federal and state requirements for the type of entitiy you set up.
You can start in this business without setting up a company. There age good reasons for making the venture a formal deal with papers and everything, In terms of reputation,which is very important both with your customers and your suppliers, forming the company will let you register the business and give it a name. Also,if you are raising capital for the business, forming a company of some sort will generally allow you to sell stock in the company to private investors. I’m not talking about a publicly traded company or trying togo way over your head here, even if you set something up with no real money going in you will probably assign shares of the company to yourself and your partners, if any. The reason most small businesses should set up the company is to take advantage of the protections it gives your personal asets vs. lawsuits. And of course,you will need a sales tax number to sell to consumers in the US, which requires an Employer Identification Number or EIN. You can work around allthis I guess, but you might as well register your business.
Business Organization Types
The four types of organizations,you aremost likely to use are as follows:
1. Sole proprietorship
2. Partnership
3. Corporation
4. Limited liability company
Tons of info on this is available on the internet. Another post of this is coming right up.
Some other related posts:
How to Become an LLC
Small Biz Survival: Next questions from starting your first business
