Two buddies and I are wanting to start up an online store. We all live in Illinois, so I'm assuming we're going to have to register as a business through the state. Is it recommended that I get an LLC business registration? This will cost around $500, correct? What other steps am I going to be needing to take this get this business rolling? Thanks in advance, Kyle
In the UK you can just start-up as a 'sole trader' this is free and just basically changes your tax status. Do you not have an equivalent in the US? This is a lot cheaper and easier then starting (what we call) a LTD company. Surely you and your friends could just start as 'sole traders' (US equivelant) to save money on registration and legal fees. Just a thought! I would search for business help sites from google, im sure there will be a main state government service that can help you. Good luck. Regards.
There are more ways than just an LLC (sole proprietor, partnership, c corp, s corp, etc) to start up. Make sure you do your research and choose the correct option for your situation.
You'll possibly have to register for a sales tax license (not sure about your state, but in my state that's free). Most places will also charge you to register your name if it's not your own (DBA - "doing business as") - and some make you advertise it. Then there are the LLC or other costs. It really depends on local / state rules. Here's a site where you can find licensing / registration info for each state: http://www.nass.org/busreg/busreg.html
First, setup a mail box for your new biz (UPS store or whatever). Also get phone number for it. Second, setup either a LLC or a corporation. Get out the gate in the right fashion. You want protection for your personal assets. I think a LLC is the best fit for most as it gives you protection and pass thru taxation. As to the cost, that depends on 1) your state's fees and 2) if you do it yourself. Third, get a SS-4 number (you might know it as a EIN number) from the IRS. Fourth, go to your favorite bank with your company paperwork, EIN and initial deposit and open up a business checking account. Most banks let you do this for a minimum initial deposit of $100ish. Have fun and good luck!
Something else... make sure you have a good record-keeping system in place before you really push forward with bringing in clients. It's much harder once your find yourself busy with clients, marketing, and admin work later. The more organized you are up front, the happier you'll be later. Believe me... that was one of my biggest mistakes when starting out.
no no no. That's what Post-It notes are for. Just doodle customer info on em and stick them where ever you want.