10: Build Your Business Step 5 - How To Set Up Your Legal Entity, Business Checking Account, and Get an EIN#

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Business And Investing Sherpa

The Business and Investing Sherpa

20 episodes

3 days ago

Welcome to the Business and Investing Sherpa Podcast, where we’ll teach you how to build an automated, scalable, multi million dollar e-commerce business just like we did. Plus, we'll teach you how to invest the profits to reach financial independence and a whole lot more. We’re not interested in retiring early though, but rather, building a life we never want to retire from!

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10: Build Your Business Step 5 - How To Set Up Your Legal Entity, Business Checking Account, and Get an EIN#

Business And Investing Sherpa

17 minutes 13 seconds

4 years ago

10: Build Your Business Step 5 - How To Set Up Your Legal Entity, Business Checking Account, and Get an EIN#

In this episode, we talk about how to set up your legal entity, business checking account, and get an employer identification number (EIN #).

Getting your business house in order will help keep everything organized, limit your personal liability, and ensure you are compliant come tax time.

Here are the Steps:

We recommend incorporating with your State as a Limited Liability Company
- Limits your personal liability to the amount of money in the company and protects against other personal assets being at risk
- To ensure this protection, you must keep your business and personal expenses separated by opening a business checking account and using that account only for the business
- LLC’s also require less ongoing regulatory paperwork for compliance
- To open an LLC, search Google for your State’s Secretary of State:
  - For Example: search “Texas Secretary of State”
- Then, read the Business Services Section and follow the Online Steps to Open an LLC
Once you have signed up for an LLC, you will receive a Certificate of Organization and an Articles of Incorporation from your State, usually within a few days
- After you receive these documents and know that everything was approved, it’s time to apply for an Employer Identification Number (EIN#)
To Apply for an EIN, search Google for: “Apply for an EIN” and go to the first non-ad link and click “Apply Online Now” and it should take just a few minutes to receive your EIN number
Now that you have an EIN, registered LLC with a Certificate of Organization and an Articles of Incorporation, you can go to your bank and open a Free Business Checking Account (they will ask for the above documents so bring copies with you)
Lastly, you can now also apply for a Business Credit Card to help with cash flow and earning reward points/bonuses (we love Chase Rapid Rewards Credit Cards and Southwest Credit Cards if trying to get the Southwest Companion Pass)

***** If you want to start your own online Amazon Ecommerce business simply follow the steps of our Ultimate Guide by Clicking the Following Link: https://businessandinvestingsherpa.com/how-to-start-an-amazon-business/

Today's Sponsor:

M1 Finance: https://businessandinvestingsherpa.com/m1

M1 Finance is one of my favorite investment tools because it’s FREE, it allows you to purchase partial shares of stock, and it allows you to do automatic rebalancing.

Resources Needed to Start Your Business and Invest the Profits (Our Top Recommendations) -

Jungle Scout - (30% Discount with this Link) Top Tool for Selling on Amazon - https://businessandinvestingsherpa.com/junglescout

TaxJar - Essential for Sales Tax Collection for Sales on Your Website - https://businessandinvestingsherpa.com/taxjar

QuickBooks - What we use for accounting, we love setting up automated rules - https://businessandinvestingsherpa.com/quickbooks

Mentions:

Southwest Rapid Rewards - https://businessandinvestingsherpa.com/southwest

Disclaimer: The above links are affiliate links, meaning we will earn a small commission at no cost to you. We greatly appreciate your support of the show in this way!