2. Decide "home" of business and file appropriate forms
(all legal entities):
Choose the state in which business is a "resident"
and comply with all filing requirements for states
Complete tax filings (Federal Employee Identification Number
("FEIN"), federal income, states sales, etc)
Complete any occupational permits required (e.g., barber's license)
Complete environmental filings (if required, check with your
state and local governments)
Complete city and county filings (local and state governments
often require business permits or other filings, so call your
local and state government small business offices)
· obtain city permits
· obtain county permits
notify health departments of city/county (if necessary)
Filings required for operation in states besides "home"
state
3. If you are creating a corporation:
Pre-incorporation subscription agreement for equity interests
if there is more than one owner (one page form usually)
Reserve corporate name with secretary of state
File articles of incorporation
File the subchapter s-corp election (Form 2553) with the IRS
(if applicable)
Obtain minute book, corporate seal and stock certificates
Execute shareholder agreements and other organizational documents
Approve board of director initial meeting/organizational minutes
Have board approve the minutes electing the corporate officers
and directors
Issue stock certificates to shareholders who have paid for the
shares
4. If you are creating a partnership:
Draft partnership agreement
File partnership taxation election form with IRS
File certificate with state (if necessary)
5. If you are creating a limited partnership:
Determine who (or what entity) will be the general partner and
who (or what entities) will be the limited partners
Draft limited partnership agreement
File limited partnership taxation election form with IRS
File certificate of limited partnership with state (if necessary)
6. Accounting Concerns:
Hire an accountant
Obtain federal employee identification number
Open banking accounts (and determine who can sign checks)
Start keeping receipts
Establish record-keeping practices, including payroll
7. Financial Concerns:
Estimate costs for initial advertising, fixtures, decorating,
inventory, professional fees, and ongoing monthly expenses (rent,
utilities, etc.)
Estimate monthly income (be very, very conservative)
Estimate and budget for consultants, lawyers, accountants needed
Begin establishing a relationship with bankers for future loans
Obtain insurance
9. Employees
Obtain FEIN number (we know we mentioned it before, but it is
important)
