How to start a small business

[skittledoo]

Ugh ok I'm confused.

I'm working on starting up a photography business... legit photography business. I've always done occasional photoshoots on the side and made a little money here and there, but never made anywhere near enough money to consider it a business exactly. I rarely ever advertised... it was more or less someone saying, "Heyyyy you take pictures right? can you do my kid's portraits?" or something like that.

Well... I'm taking a giant leap forward and I'm going to turn this into a business... specifically a dog sports and dog fine art/studio photography business.

Here's my confusion. I know how to purchase a domain name... simple enough.

However... there's the step of making it a business part that confuses the crap out of me. My dad mentioned me getting a DBA (Doing Business As) aka fictitious name so that if people want to write checks to the business name they can and I can legally cash the checks or whatever. I have no idea how that works or what it is exactly.

But I've got to register my business with the state of Virginia since that's where I'll be operating this company so to speak. Between that and getting a fictitious name I'm just lost on how to go about doing this.

In this website about DBA:Doing Business As (DBA) a Fictitious Business Name: Why and How

It also lets you use a typical business name without creating a formal legal entity (corporation, partnership, LLC, etc.). You can even open a business checking account and get a business phone listing for the name. For sole proprietors, this is the least expensive way to legally do business under a business name.

^^^ I thought you had to have a legal entity at the end of your business name???? So... does this mean I can get a fictitious name and that's all I have to do in order to register as a business or is there more than I'm not understanding????

I really don't want to screw this up and do this wrong so I could really use a little input here. And if you don't mind... dumb it down for me. For some reason I'm just really not understanding how this works

 

[Beanie]

I'm not totally sure I get the question, but you are a sole proprietor - nobody else owns the business with you, so you don't have to worry about LLC and stuff. My business name in Illinois is BeanieArt. That's it.

Besides a DBA you will also need to register as a business with the state so you have a tax ID number to file your taxes at the end of the year. You can probably just call your county clerk's office and I bet they will have somebody help you and tell you which forms you'll need and stuff.
I don't think I had anything at all when I went to the bank and opened a checking account with BeanieArt on it. They also put a note on my account that I can cash checks to that account written to either the business name or my real name.

Does that make sense?

 

[skittledoo]

Ya I'm pretty sure I'd be doing it as a sole proprietor.... though I do want my husband's name on it as well so that he can cash checks if need be. Sorry if I didn't ask the question clearly. I'm so confused that I think I made my question confusing lol.

Basically... I'm owning this business on my own though I want my husband to have some sort of legal standing in the business because he handles the finances and will more than likely be handling the finances involved with this business. I'm going to go ahead and give the county clerks a call tomorrow.

 

[release the hounds]

Have you checked this out?

Starting a Business in Virginia

But it appears your name will be your registered legal name in VA.

Virginia Department of Taxation

To advertise or whatever using a name other than your name, you'll have to register a DBA with your county clerk. I didn't see any link online that went right too it, but I didn't look much either. I'd just call your country clerk and ask her what forms you need, but you'll first have to register with the state.

Creating an LLC is easy too, here it's just 130 filing fee, but you don't have to do a DBA then, unless you have multiple places and want to. I just registered the LLC under the name I wanted to use, and myself as the sole member. Not sure how it works in VA

 

[release the hounds]

if you just want your husband to do banking stuff, just register him with the bank as eligible to cash checks and take care of finances. I wouldn't worry about putting him on legal stuff to register with the state.

 

[ChrisWB]

Amber,

I've started two small businesses so I'm pretty familiar with the legal, accounting, and management aspects. My accountant recommends sticking with a DBA if your business makes under $50,000 a year. To form a DBA you go to your county clerk's office and fill out a form. Voila. You have your company. You do not need a tax ID number. When you file your taxes you'll use the self-employed options.

If you form an LLC you will need to get a lawyer involved. You'll want the following documents prepared:

A limited liability agreement
Certificate of formation
State filing document(s)

Additionally, if you have any employees you will need to file (or have your lawyer file) an IRS SS-4 form. The SS-4 form will ask the IRS to provide you with an EIN (employee ID number) which is similar to a social security number, but for corporations.

Keep in mind that forming a "real" corporation (LLC or S company) is damned expensive. You'll have to pay a corporate renewal fee every year, even if your company makes no money or loses money. Good luck.

 

[release the hounds]

it varies from state to state, but I don't find 130 to be expensive and that's to file, no renewal fee for an LLC

In VA it's 100 bucks to file an LLC

http://www.scc.virginia.gov/publicforms/322/llc1011.pdf there's a number at the bottom to call with questions about renewal or anything else.

You can obtain an EIN without a lawyer or filing a form, just go here
Apply for an Employer Identification Number (EIN) Online

as a sole proprietor here, your soc is your tax ID, so techincally no, you don't have to register because you already have an ID. Not sure about VA, but you must register a DBA.

 

[Beanie]

Illinois law says you DO need to register your business, even as a sole proprietorship, so that must vary from state to state. You're supposed to display your registration wherever you make sales, too, but I will say most small business like mine (folks who set up tables at conventions or the farmer's market or whatever) don't usually display them. I did take my registration form up to Chicago with me when I sold up there just in case, because I had heard very bizarre stories, but nobody ever asked for it...