Starting A Small Business In Less Than 24 Hours
Posted on February 07, 2011 by Ken Germann, One of Thousands of Entrepreneurship Coaches on Noomii.
In today's high tech world, it no longer has to take extensive amounts of time to start a small business.
In today’s high tech world, it no longer has to take extensive amounts of time to start a small business. Many of the business startup steps can be handled quickly via the Internet, including the ability to incorporate online, apply for a tax ID number, and apply for a small business loan.
To begin with, it is beneficial to incorporate your small business for many reasons. The main advantage is the protection of personal assets that is offered. Under this setup, business owners property cannot be a target of lawsuits or creditors. Also, corporations are taxed at a lower rate and credit ratings are established for the corporation, not based on the individuals rating.
There are websites that offer secure application forms for incorporating your business in as little as 10 minutes. The information you will typically need in order to complete the form are the state you are incorporating in and what type of corporation you will be establishing (e.g. Basic Corporation, S-corp, or LLC).
Tax ID Number
Next it is necessary for new business owners to apply for a Tax ID number, also known as EIN (employer identification number). This is the nine digit number that is assigned by the Internal Revenue Service (IRS) to any type of business entity (corporation, sole proprietorship, partnership, etc.). The Tax ID number is used for tax filing, business, and banking purposes, as well as for the identification of your business by various federal agencies. Again, this is a quick process online – it can be done in about 5 minutes.
Small Business Loan
If you need funding for your small business, you will want to consider applying for a small business loan online. The process is simple and quick. For this type of loan, there is not usually extensive documentation required and reputable firms do not charge application fees. Also, you can typically find out if you qualify for an unsecured loan (no collateral) or a line of credit usually within a day or two. If you do not want to risk your personal assets and are in the market for a funding between $10,000 and $100,000, this is the avenue to take. It is however important that you have a good credit history and also be sure to apply with a trustworthy company.
All in all not only are these processes simple and quick, but they greatly reduce since margin of error since you are filling out your applications directly online.