Starting a business

 Many folks ask me how to start a business, here are the steps, in general.

1. Choosing a Type/Structure:

The US Small Business Administration (SBA) has a ton of information about starting, structuring, and launching a business. The SBA.Gov website has a special topic on choosing a Business Structure.

Most Common:

Business structure	Ownership	Liability	Taxes
Business structure: Sole proprietorship (often uses a DBA / ABN)	Ownership: One person	Liability: Unlimited personal liability	Taxes: Personal tax only
Business structure: Limited liability company (LLC)	Ownership: One or more people	Liability: Owners are not personally liable	Taxes: Self-employment tax Personal tax or corporate tax
Business structure: Corporation - C corp	Ownership: One or more people	Liability: Owners are not personally liable	Taxes: Corporate tax
Business structure: Corporation - S corp	Ownership: One or more people, but no more than 100, and all must be U.S. citizens	Liability: Owners are not personally liable	Taxes: Personal tax

2. Entity Filing in Idaho

The Idaho Secretary of State website contains all of the forms one could need to star their business filing. On the left, select Business Entities, the select the entity type you are interested in creating.

Most common are:

• Assumed Business Name (ABN) / Doing Business As (DBA)
• Corporation (INC)
• Limited Liability Company (LLC)

You will print out the form, sign it, and send it by mail with a check for the filing fee ($25 or $100, typically). The Secretary of State in Idaho takes FOREVER to complete the filing. Could be two weeks, could be six weeks. Could be longer.

 3. EIN / Tax ID

If you are any type of business except a Sole Proprietor using your name or an ABN/DBA, you'll need to have a Tax ID (EIN). Simple, easy, and Free process. Just go to IRS.Gov, select "Apply for an Employer ID Number (EIN)", under step 3 select Apply Now, then select Begin Application. Follow the prompts and make sure to save the PDF at the end before closing the screen.

 4. Opening Your Business Accounts

Once the Secretary of State shows the filing on their website, we're ready to open accounts. We can pull that paperwork directly from the site, so you just bring your ID, opening deposit, and EIN/TaxID.

DarrellWolfe