Business 101 - How to form a Company (LLC, S-Corp or Partnership) 🏢

1) Create a Business Name & form a Partnership, LLC or Corporation.  Hire a professional, or create yourself with an online provider such as LegalZoom, notable packages are listed here: https://www.legalzoom.com/business/business-formation

 (This article does not cover Sole Proprietorships) 

2) Obtain a new EIN# – Employer Identification Number, this is your Company Tax ID#.  Typically receive one immediately for free, directly from the IRS:  https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number

3) Open a Business Account & Credit Cards: 

Check out:

a) US Bank's Free - Silver Business Checking, with limits: https://www.usbank.com/business-banking/business-bank-accounts/business-checking/silver-business-checking-account-package

b) Capital One - Pre-Approval for a Business Credit Card, may require a personal guarantee, however, no impact to your score to apply: https://www.capitalone.com/apply/small-business/preapprove

c) Bank of America -  If required, this secured card is one of the best ways to quickly build + increase your Business Credit score. It starts with a $1k deposit, however, with a regular history of timely payments & responsible behavior, your deposit will usually be refunded and limit eventually increased, you do NOT need to bank with BOA - More info: https://www.bankofamerica.com/smallbusiness/credit-cards/business-build-or-strengthen-business-credit

d) Open Net 30 Accounts - A Net 30 account is a type of vendor credit account that allows your business to buy goods/services now and pay the invoice within 30 days. These accounts are often the first step in building business credit, since many of them report to credit bureaus like Dun & Bradstreet, Experian, and Equifax. 

Below is a list of the most popular ones.  You may also verify with customer service which bureaus they report to and if an initial purchase is required 💳

Uline

https://www.uline.com/CustomerService/ULINE

Quill

https://www.quill.com/quill-net-30

Grainger

https://www.grainger.com/content/user_registration

4) Taxes & Payroll - Speak to your accountant, very important to form your business properly and remain cognizant of both Federal + State regulations; practicing sound habits from the beginning will save you a lot of headaches later on. 

Also if formed correctly, your LLC, S-Corp or Limited Partnership may provide numerous tax benefits, plus significant legal protection, shielding your personal assets from business debts & liabilities, however, depends on local laws. 

In conclusion, the structure you elect normally depends on the type of enterprise, including purpose of operations, for example Real Estate, E-Commerce, or Professionals etc.  Once configured correctly, you're almost on your way! 👌 🏅🏆 👨‍💼 🙎‍♀️

Also check out: Business Credit Scores: What you need to know - By Sean Aujla, MBA

Disclosure: The posted info should be utilized as a basic guide only.  Please consult with a licensed business professional to confirm accuracy, plus any additional steps required, tailored to your scenario. In addition, all content provided is deemed current, however, subject to change with any adjustment of government or organizational policies. 

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𝒮𝑒𝒶𝓃 𝐴𝓊𝒿𝓁𝒶, 𝑀𝐵𝐴
𝒮𝑜𝒞𝒶𝐿 ℛ⁄𝐸 & 𝑀𝓉𝑔. 𝐵𝓇𝑜𝓀𝑒𝓇
𝐻𝑜𝓂𝑒𝓈 𝓉𝒽𝒶𝓉 𝓂𝑜𝓋𝑒 𝓎𝑜𝓊 🏠
R𝒾𝓈𝑒 𝑅𝑒𝒶𝓁𝓉𝓎 | 𝒯𝒯𝐻 𝐿𝑜𝒶𝓃𝓈
𝒟ℛ𝐸 𝟢𝟤𝟤𝟣𝟣𝟧𝟨𝟧 | 𝒩𝑀𝐿𝒮 𝟤𝟦𝟪𝟢𝟨𝟫𝟤
https://seanaujla.com/tips

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This Blog was written by: Sean Aujla, MBA - #SoCal Real Estate & Finance Broker - DRE 02211565 | NMLS 2480692.  Not affiliated with any of the companies mentioned in the post. 

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𝒮𝑒𝒶𝓃 𝒾𝓈 𝒶 𝓈𝑒𝒶𝓈𝑜𝓃𝑒𝒹 𝑅𝑒𝒶𝓁 𝐸𝓈𝓉𝒶𝓉𝑒 & 𝐹𝒾𝓃𝒶𝓃𝒸𝑒 𝐵𝓇𝑜𝓀𝑒𝓇 𝒷𝒶𝓈𝑒𝒹 𝒾𝓃 𝓉𝒽𝑒 𝐿𝐴 𝓇𝑒𝑔𝒾𝑜𝓃. 𝐻𝑒 𝑜𝒻𝒻𝑒𝓇𝓈 𝑜𝓋𝑒𝓇 𝓉𝓌𝑜 𝒹𝑒𝒸𝒶𝒹𝑒𝓈 𝑜𝒻 𝑒𝓍𝓅𝑒𝓇𝒾𝑒𝓃𝒸𝑒 & 𝒻𝑜𝒸𝓊𝓈𝑒𝓈 𝑜𝓃 𝓅𝓇𝑜𝓋𝒾𝒹𝒾𝓃𝑔 𝒸𝑜𝓂𝓅𝓇𝑒𝒽𝑒𝓃𝓈𝒾𝓋𝑒 𝓈𝑜𝓁𝓊𝓉𝒾𝑜𝓃𝓈, 𝓉𝒶𝒾𝓁𝑜𝓇𝑒𝒹 𝓉𝑜 𝑒𝒶𝒸𝒽 𝒸𝓁𝒾𝑒𝓃𝓉'𝓈 𝑜𝒷𝒿𝑒𝒸𝓉𝒾𝓋𝑒𝓈 – www.seanaujla.com

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#𝒍𝒍𝒄, #𝒈𝒑, #𝒃𝒖𝒔𝒊𝒏𝒆𝒔𝒔, #𝒆𝒊𝒏, #𝒃𝒐𝒂, #𝒖𝒔𝒃𝒂𝒏𝒌, #𝒄𝒂𝒑𝒊𝒕𝒂𝒍𝒐𝒏𝒆, #𝒄𝒐𝒎𝒑𝒂𝒏𝒚, #𝒉𝒐𝒎𝒆𝒔𝒇𝒐𝒓𝒔𝒂𝒍𝒆, #𝒄𝒐𝒏𝒅𝒐𝒔𝒇𝒐𝒓𝒔𝒂𝒍𝒆, #𝒍𝒂𝒓𝒆𝒂𝒍𝒕𝒐𝒓, #𝒍𝒂𝒓𝒆𝒂𝒍𝒆𝒔𝒕𝒂𝒕𝒆, #𝒓𝒆𝒂𝒍𝒆𝒔𝒕𝒂𝒕𝒆𝒂𝒈𝒆𝒏𝒕, #𝒓𝒆𝒂𝒍𝒕𝒐𝒓, #𝒃𝒓𝒐𝒌𝒆𝒓, #𝒓𝒆𝒂𝒍𝒆𝒔𝒕𝒂𝒕𝒆𝒊𝒏𝒗𝒆𝒔𝒕𝒐𝒓, #𝒓𝒆𝒂𝒍𝒆𝒔𝒕𝒂𝒕𝒆𝒃𝒓𝒐𝒌𝒆𝒓, #𝒎𝒐𝒓𝒕𝒈𝒂𝒈𝒆𝒃𝒓𝒐𝒌𝒆𝒓, #𝒓𝒆𝒂𝒍𝒆𝒔𝒕𝒂𝒕𝒆𝒏𝒆𝒘𝒔, #𝒓𝒆𝒂𝒍𝒆𝒔𝒕𝒂𝒕𝒆, #𝒎𝒐𝒓𝒕𝒈𝒂𝒈𝒆, #𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒏𝒈, #𝒔𝒆𝒂𝒏𝒂𝒖𝒋𝒍𝒂.

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#𝒍𝒂, #𝒍𝒐𝒔𝒂𝒏𝒈𝒆𝒍𝒆𝒔, #𝒔𝒐𝒄𝒂𝒍, #𝒄𝒂𝒍𝒊𝒇𝒐𝒓𝒏𝒊𝒂, #𝒓𝒆𝒂𝒍𝒆𝒔𝒕𝒂𝒕𝒆, #𝒎𝒐𝒓𝒕𝒈𝒂𝒈𝒆, #𝒇𝒊𝒏𝒂𝒏𝒄𝒊𝒏𝒈, #𝒃𝒆𝒗𝒆𝒓𝒍𝒚𝒉𝒊𝒍𝒍𝒔, #𝒉𝒐𝒍𝒍𝒚𝒘𝒐𝒐𝒅, #𝒃𝒆𝒍𝒂𝒊𝒓, #𝒃𝒆𝒗𝒆𝒓𝒍𝒚𝒈𝒍𝒆𝒏, #𝒃𝒓𝒆𝒏𝒕𝒘𝒐𝒐𝒅, #𝒔𝒂𝒏𝒕𝒂𝒎𝒐𝒏𝒊𝒄𝒂, #𝒐𝒄𝒆𝒂𝒏𝒑𝒂𝒓𝒌, #𝒗𝒆𝒏𝒊𝒄𝒆, #𝒎𝒂𝒏𝒉𝒂𝒕𝒕𝒂𝒏𝒃𝒆𝒂𝒄𝒉, #𝒎𝒂𝒍𝒊𝒃𝒖, #𝒑𝒂𝒄𝒊𝒇𝒊𝒄𝒑𝒂𝒍𝒊𝒔𝒂𝒅𝒆𝒔, #𝒄𝒖𝒍𝒗𝒆𝒓𝒄𝒊𝒕𝒚, #𝒅𝒆𝒍𝒓𝒂𝒚, #𝒎𝒂𝒓𝒗𝒊𝒔𝒕𝒂, #𝒑𝒍𝒂𝒚𝒂𝒗𝒊𝒔𝒕𝒂, #𝒍𝒂𝒙, #𝒃𝒖𝒓𝒃𝒂𝒏𝒌, #𝒈𝒍𝒆𝒏𝒅𝒂𝒍𝒆, #𝒔𝒉𝒆𝒓𝒎𝒂𝒏𝒐𝒂𝒌𝒔, #𝒆𝒏𝒄𝒊𝒏𝒐, #𝒔𝒕𝒖𝒅𝒊𝒐𝒄𝒊𝒕𝒚, #𝒕𝒂𝒓𝒛𝒂𝒏𝒂, #𝒘𝒐𝒐𝒅𝒍𝒂𝒏𝒅𝒉𝒊𝒍𝒍𝒔, #𝒄𝒂𝒍𝒂𝒃𝒂𝒔𝒂𝒔, #𝒉𝒊𝒅𝒅𝒆𝒏𝒉𝒊𝒍𝒍𝒔, #𝒂𝒈𝒐𝒖𝒓𝒂𝒉𝒊𝒍𝒍𝒔, #𝒘𝒆𝒔𝒕𝒍𝒂𝒌𝒆𝒗𝒊𝒍𝒍𝒂𝒈𝒆, #𝒕𝒉𝒐𝒖𝒔𝒂𝒏𝒅𝒐𝒂𝒌𝒔.