Steps for Starting a Business

Many people are interested in starting their own business. Here are three critical first steps to making your business official.

1. Register your LLC

The first step in creating your business is to apply for an LLC with your state. In Ohio you apply through the secretary of state website (Homepage – Ohio Secretary of State (ohiosos.gov).

Click “Submit Your Business Filings Online” and walk through the steps and pay the fee. In Ohio the fee is $99.

Ohio Business Filings (ohiosos.gov)

2. Obtain EIN

Once you have established your LLC and have a state charter number you can now obtain an Employer Identification Number (EIN) from the IRS. Even if you do not plan on hiring employees right away it is still a good idea to go ahead and get your EIN number now. You will most likely need it for the next step of opening a business bank account.

Apply for an EIN directly on the IRS website here: Apply for an Employer Identification Number (EIN) Online | Internal Revenue Service (irs.gov)

You will receive your EIN number immediately at the end of the process.

3. Open a Business Bank Account

Once you have your EIN you can now open a business bank account. A separate business bank account is a good idea for making it easier to keep your business books and accounting.

You can use any bank you like but as an accountant I have a strong preference for Chase Bank. One thing I love about Chase is that that they will upload pictures of the checks you deposit in the online banking system. You can always view pictures of the checks you write but Chase is the only bank I have seen that allows you to view pictures of the checks you deposit as well.

Conclusion

Of course, there are many other steps in starting and operating a business but if you are stuck on what to do first, start with these three steps.