Steps to Forming an Entity

23 July 2013 / Video Blog / Comments Off on Steps to Forming an Entity

Welcome to another edition of Tuesday Tidbits where we make tax and accounting simple. I'm your host Charles D. Shapero CPA with Widget Bookkeeping and Tax and today we're going to talk about the steps to form an entity. One of the best ways is to go see a professional to form your entity. That way the work is taken out of your hands. It may cost you $300-500 but at least you don't have to do the legwork. If you want to do the legwork yourself, the question comes what do I do first? Do I get a bank account, do I get a federal ID number? I can walk you through that process. It's really a 3-step process. The first step: We're going to go to Sunbiz.org and we're going to file the articles for a Florida profit corporation or the articles of organization for an LLC. It's a very simple document to fill out online a few forms, you've got to tell them who the officers are, who the agents are what the purpose, what business you're going to be doing for the entity. And then, you pay your fee and a day later they post those articles online. After the articles are posted you're ready for step 2, you need to go to www.irs.gov The Internal Revenue Service right on the front page, you're going to see a link that says apply for an EIN online, that stands for Employer Identification Number, very easy form to fill out you give them a little information about your business, what it's going to be doing and they will issue a federal ID number on the spot, the third step: Let's open those bank accounts so your corporation can have a place to deposit its revenue and a place to write business related checks. What the banker is going to need from you are the articles that formed in step 1, and the federal ID number that you got in step 2, you take both of those over to your banker and open a business account. One business account is really all you need. That concludes today's Tuesday Tidbit, see you next Tuesday. Widget Bookkeeping and Tax, Know More, Keep More!

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