I want to start a mobile spa service. I am currently in Texas, but I plan to move to another state very soon.
I've obtained an EIN, a Duns number, and a Texas Taxpayer ID.
I want this to be an LLC, but I have not filed with the Secretary of State so I assume as of right now I'd still be considered a sole proprietor?
I've already looked at the links here on the website, but I'm still a little confused on the process.
Should I file with the Secretary of State here in Texas to establish myself, or should I wait until I move? Does it matter where an LLC is formed? Can you move it to another state?
Does anyone know of a professional service that will write my business plan for me?
How am I supposed to go about establishing credit when creditors have no credit report to check? I can't get credit without a report, but I can't get a report without credit! What am I to do?!
Since I have an EIN am I obligated to pay taxes even if I never do anything with it? Are you required to pay just for the mere fact that you have an EIN?
I'll stop there with the questions for now, but I probably have 1,000 more. Oh and yes, I do know about the Score and SBA advisors, I just haven't set up an appointment yet because I feel as though I need to have some background information first. I feel completely clueless as to how to get this whole thing up and running!
BizResearcher | Window Shopper |
7/27/2010 - 8:32 am
You may want to visit a small business development center or a SCORE office in your new state. The counseling is free and they can answer your questions as they pertain to your new state.
An EIN has many purposes and having one does not require you to pay taxes of any kind. The EIN serves as your tax payer identification number instead of using your SS number. Many businesses and banks will no longer accept your SS# as your identification. When you file for and EIN, the government assumes you have employees and sends you a payment booklet. You can easily cancel that by returning a coupon with a balance of zero owed and a letter stating that you have no employees at the present time.
BellaMobile -
First congrats on your new venture. I will try answer some of your pressing questions here, and perhaps some members who have experience can also jump in.
First, regarding relocating your business -
I recommend that you read these two guides from Business.gov:
Moving to a New State: A Small Business Relocation Checklistthis article sheds some light on the regulatory side of relocating your business to a new state - from corporate structure issues and tax ramifications to business registration and licensing
Relocating a Businessthis article walks through goals and objectives of relocating a business, and tips for increasing your odds of success in a new environment.
Regarding business plans -
The following resources will help you develop a sound business plan, including video tutorials, free templates, and technical guidance: How to Write a Business Plan
The state matters. Since you are moving very soon, form the LLC in the new state.
Write it yourself. Use software like Business Plan Pro to help guide you. Writing the business plan is a lot of thinking and planning for you. If you are going to use this business plan to get a loan, you can then look for a professional service to make it pretty after you have written it yourself.
You will be most likely be using your personal credit while your business is new. Use your business name and EIN for everything related to the business and you will build credit as you go. D&B can also help build credit for businesses.
You are required to pay taxes for any income earned, not because you have an EIN.
Ultimately, the choice of plan isn't based as much on the stage of business as it is on the type of business, financing requirements, and business objective. Here are some important indicators of the level of plan you'll need, even as a startup:
Some of the simpler businesses keep a plan in the head of the owner, but every business has a plan. Even a one-person business can benefit from creating a plan document with ideas written down, because the process of producing a plan is useful and valuable.
As soon as a second person is involved, the need for planning multiplies. The plan is critical for communicating values, goals, strategies, and detailed implementation.
As soon as anybody outside the company is involved, then you have to provide more information. When a plan is for internal use only, you may not need to describe company history and product features, for example. Stick to the topics that add value, that make you think, that help support decisions. When you involve people outside the company, then you need to provide more background information as part of the plan.
For discussion purposes, text is enough to get a plan started. Try describing your mission, objective, keys to success, target market, competitive advantage, and basic strategies. How well does this cover your business idea?
homebusinessbug | Creator | 8/2/2010 - 9:20 pm
BizResearcher | Window Shopper | 7/27/2010 - 8:32 am
NicoleD | Former Moderator | 7/23/2010 - 10:21 am
teamextension | Contributor | 7/22/2010 - 10:26 pm
gbs03 | Creator | 8/3/2010 - 3:25 am
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