Wednesday, May 12, 2010

Your Virtual Corporation – 4 Easy Steps To Set-UP

So you have done the research, found this great company you would like to work for, so now what comes next? If you have decided to accept employment as an employee, working from home then you just have to wait for the company to schedule training. If however, you decide to take the route as an independent contractor you will need to set up a virtual service corporation for your business.

Here Is Your Business Start Up Checklist:

1. Select a Name and Legal Structure: If feasible try to select a name to reflect the kind business you will be operating.
When selecting a legal business entity you have 4 choices.
· Sole Proprietorship, is also known as a “DBA”, “Doing Business As” or “Fictitious Name”.
· Partnership
· Limited Liability Company (LLC)
· Corporation or S-Corporation (I have found from my own experience that Limited Liability Corporation is best suited for the virtual home based-business). The reason being, the LLC is easy to manage, profits and losses are added to the owner’s personal tax returns and it still gives the liability and protection of a Corporation. However, before you decide on an entity consult with your accountant.

2. Get Your Federal Employer Identification Number

Your Federal Employer Identification Number is to your business as your social security number is you. A corporation, being a separate entity, can establish a new and separate credit file that is distinct from your personal credit file.
If you choose to setup your new business as a Corporation, LLC or Partnership (or a sole proprietorship with employees), apply for a Federal Employer Identification Number (FEIN) from the Internal Revenue Service. A FEIN will be necessary to open a business bank account.
You can apply for your FEIN over the phone by calling 1-800-829-4933.

3. Open Your Business Checking Account

Your business funds should be managed separately from your personal funds. You now have your business name, your corporation paper and FEIN so you are ready to open your business checking account.

Keep in mind service charges differ from bank to bank. Check all your local banks and compare to get the best pricing. Some banks may offer no deposit, no minimum balance and free service charges for selected time frame.

4. The Business License

The purpose of a local business license is to authorize your company to do business in your particular city or county limits. Most Cities or Counties require you to obtain a business license, even if you operate a home-based business. Before you leave home just call the city or county to verify exactly where to go to obtain your license.

If you are still undecided on a choice of  homeshoring a job opportunity and would welcome some ideas these e Books are  resource with a wealth of information.  An Inside Job and Free Lance at Home as a Virtual Assistant.  You can check then out by pressing the links above.  
Good Luck! You have now taken the first step in becoming a proud business owner.

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