Business And Investing Sherpa

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

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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/


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          Mentions:

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          Business And Investing SherpaBy The Business and Investing Sherpa
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