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The Following
are Recommended
All those
who want to be protected from personal,
civil and financial liability
should obtain a
corporation or Limited
Liability Company
and a
federal tax id
and comply with the license
requirements above.
All Online
Businesses
should have a
web site and a
merchant account,
All those
who want to build
corporate business
credit
should
obtain a
corporation or Limited
Liability Company
and a
federal tax id
and comply with the license
requirements above.
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In this you
will learn whether you need:
If you already decided on the type of
service or product to sell, you are
ready to start your business.
The next thing you need is to choose a
legal business entity:
There are advantages
and disadvantages of sole
proprietorship, partnership and
corporation. However, if you are
ready to operate your business,
just go ahead and get the required
documents:
First,
legally,
all businesses must
file and record
a
Business License
(otherwise called an assumed name,
firm name or trade business name)
or Incorporate the Business if
they do business in a business name
(e.g., Carpet
Express) other than their
own personal name
(e.g., John Smith),
a
Business License
, or
Incorporate.
Benefits: You need a Business
License certificate or a corporation
certificate so you can open a
merchant or business bank account,
discourage competitors from using
your business name, and enforce
contracts you entered into under the
business name.
Second,
legally, all
businesses that have employees, or are a
corporate business entity such as a
corporation, Limited Liability Company ,
or Limited Partnership, must obtain a
federal tax id. Note that you may
need a federal tax id to obtain a
Wholesale License and you definitely are
required to have one if you have
employees.
What is a federal
tax id number?
In addition, think about it... You open
a business bank
account using your social security
number.... a check bounces... whose
credit is ruined? Protect your
credit. Obtain a federal id and
use it to open a business bank account.
Third,
legally,
in most cases, businesses that have
employees must obtain a
State Tax Id: EIN
Employer ID.
Note that you need to have a federal tax
id before you can get a state tax id.
Fourth,
In General, it is unlawful
for any person, to carry on any
business, trade, profession, calling,
occupation or gainful activity without a
Wholesale License if the business
buys to resell or sells wholesale or
retail taxable
services or tangible items.
A
Reseller License
is the
same as a Wholesale License , Sales Tax
Certification, Wholesale License.
Example, you sell computers or clothing
online or on eBay in California... you
need a Wholesale License to buy
wholesale tax . When you sell, you
charge taxes (collect taxes) to pay to
government later.
You also
need a Wholesale License if the services
you provide are taxable to the public.
Business License:
legally
, in most cases, all businesses must
be licensed before they can begin to
operate. If an individual or
company is found either operating a
business or conducting business without
a business license, he or she will be
subject to significant fines and/or
penalties.
Note: you need a Business License
to open a bank account - not a
business
license.
Click Here for More...
See a Table of
Required Documents
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After You Obtain Your
Required
Business
Licenses,
You Will Need The Following:
 
 
Starting a Business in
California
California Business
Start-Up Checklist
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