Starting a business

I love small businesses! I love to watch Shark Tank and see what other people are doing with their God given talents, it keeps my mind turning. When I see someone who comes into my office sit down and say I want to open a business account with just their cell phone in their hands I know that I’m in for a long conversation. I am not and probably will never be upset with someone who doesn’t know what you will need to set up a bank account for a business. What baffles me and makes me wonder is how some people are in business without having any sort of documentation. Opening a hair studio under your social security number as a sole proprietor no problem. I had a customer in a couple of weeks ago, hey my business partner and I need somewhere to put this $91,000 check. WHAT?!?!?! These two guys had purchased a fixer upper home done a full renovation out of their own pocket then wanted to put the money into a business account. Do you have any paper work? “Like what” they asked? Tax ID, LLC articles, letter of good standing with the state? Anything at all that says that your XYZ company is an actual company? No we just decided why not? The guys on TV make it look really easy. Sure they do. Here is kind of a 10,000 foot over view of what we will be needing to open an account. There are 2 million web sites to draw up an LLC you can pay as much as you would like, you may be able to find some website that will give you 30 days free. Heck you may even be able to call down to a local law school and see if they do any sort of free weekends where the students will take people with minor questions. You know they will be done right for your state because the professor will be looking over everything so they are sending out wrong or illegal document out into the real world. Next you will have to get a Tax ID or EIN number you can do this for free from please don’t over pay an attorney to do this for you. They IRS will ask you basic questions as to what the type of business you will be operating, about 45 seconds to 1 minute later you will have an actual EIN in your hands (note please print before closing) just make sure there is no business with that name in your state for that you will need to do a little digging on the secretary of state’s website. Then you can file your LLC documents with the state and I believe for Nebraska it is $100 to get that letter of good standings of record. I know what you’re thinking well how as a small business just getting started am I going to spend another $100. Think how much it will cost you if you are using a name that is already a registered name. Then you will be looking at changing all of your names again and maybe looking at a law suit. I would say $100 is well worth the extra effort.

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