polksalet Posted January 7, 2008 Share Posted January 7, 2008 How do I go about this?? How/when do I start a bank account for the business? Can I go ahead and open it and change the info later? Quote Link to comment Share on other sites More sharing options...
MrTed46 Posted January 7, 2008 Share Posted January 7, 2008 (edited) How do I go about this?? How/when do I start a bank account for the business? Can I go ahead and open it and change the info later? I dont know about Texas but when I did it in NYC, I needed to get a TAX ID # AND register the business in a state before the bank would give me an account. Quick google gave me this..dont know if its helpful but http://www.governor.state.tx.us/ecodev/sba/guide Edited January 7, 2008 by MrTed46 Quote Link to comment Share on other sites More sharing options...
darin3 Posted January 7, 2008 Share Posted January 7, 2008 Beaumont gave me terrific advice in this regard and I believe Yo Mama was also well versed in this area. Quote Link to comment Share on other sites More sharing options...
yo mama Posted January 7, 2008 Share Posted January 7, 2008 (edited) You can find the necessary forms to create an entity on Texas' secretary of state's website. After you file those documents you can open a bank account in the entity's name. Not sure why you want a corporation (because of double taxation) but you'd certainly need to file a form SS-4 with the IRS to obtain a taxpayer ID # for it. You may want to consider a limited liability company, instead. If it is a single member LLC the IRS treats you and the LLC as the same taxpayer (so you report its earnings on your own tax return, and would not need to file the Form SS-4). But you still get the benefit of liability protection. If you have others who are working with you as equity owners you may consider a partnership, or an LLC that is taxed like a partnership. Figuring out what kind of entity you really want will determine what forms need to be filed with the Texas secretary of state. Depending on what you want to do, you may then opt to have a partnership agreement/shareholder's agreement drafted to define the terms and conditions of how the entity will run. You don't technically need one, but they are highly recommended if you have other owners involved. If you choose not to have one you will merely be subject to default Texas law. That's not a bad thing. It just means you don't have the opportunity to elect anything different on numerous small issues. After that, you need to fund the entity with whatever cash or property you want in there. Depending on how complex your operations are, you may want to get a CPA involved to make sure all the accounting and tax compliance are done correctly. Again, not "required," but highly recommended. Edited January 7, 2008 by yo mama Quote Link to comment Share on other sites More sharing options...
Puddy Posted January 7, 2008 Share Posted January 7, 2008 I now see why you have no overhead. You get your advice for free. Quote Link to comment Share on other sites More sharing options...
polksalet Posted January 7, 2008 Author Share Posted January 7, 2008 I now see why you have no overhead. You get your advice for free. yeah, that's why I hang out here Seriously though, thanks for the help guys Quote Link to comment Share on other sites More sharing options...
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