1 - Business Setup

Here is your MUST-DO list to get your business setup. 

Note: We are not lawyers. If you have specific needs, please reach out to a lawyer in your area. 

Step 1: Get your business name nailed down. DON’T MAKE THIS PART HARD. So many people get stuck on a name...you can always change this later on. Choose a name and get this going!

Tip on name choosing: Kids can come up with some pretty creative names if you get stuck.

Step 2: Check to see if the domain is available on godaddy.com and buy it.

1. BUY your domain when you find it. If you come back to it later, more than likely someone else will have purchased it. I can’t confirm, but I'm pretty sure they have systems built it for what people are searching for...so people can buy them up and then resell them to you for top dollar.
2. Get the privacy option. It will save you from 2 a.m. random spam calls. It costs around $10. WELL worth it!
3. Buying a domain should only cost around $20 with a year or two and privacy protection. DON’T Spend big bucks here.
4. GoDaddy will also try to sell you everything under the hood. Don’t get it. Just a domain. That’s it.

Step 3: If you don't already have an LLC or need to setup a new LLC, you can go the DYI route or use LegalZoom. 

If you're going to do it yourself, see the additional steps below under "What if I want to setup my LLC on my own?".

Step 4: Set up a PayPal account under your business name. It's free.

Step 5: Get your social account names set up. YOU MAY NOT WANT or know how to use them now, but it will save you a lot of trouble if you do in the future. Get your INSTAGRAM first and then Facebook. If one of your accounts doesn’t match up, then feel free to add ‘official’ to the end. That is what I had to do on my instagram because I waited 6 months to get it :(

Step 6: Get your business bank account set up!

If you get to a point where you want/need a bookkeeper, you can check in the Facebook group to see if there are any recommendations from others in the group.

FAQ: 

What is an LLC?

A LLC is a legal way to protect your personal "stuff" by separating your business.  

Do I need a registered agent?

An LLC needs a registered agent.  It can be you or a third party.  The purpose is to collect legal and government papers. 

Do I need a DBA? What if I end up wanting to change my business name?

If you end up hating your business name, it's okay. Just get what is known as a DBA (Doing Business As). It costs around $22 here in Utah. Go to your state's gov page and search DBA and there will be a form to fill out. I personally have a lot of DBA's so they are not bad to have.

What if I want to setup my LLC on my own? 

Each individual state is different. Search your specific state for step-by-step instructions. In a perfect world, they'd all be the same but they don't play that way.

Here's the breakdown of what you need to do:

1. Name and form your LLC

• Most states will have a website where you can check to see if your LLC name is available.
• You will need to identify a registered agent for your LLC. This can typically be the owner of the LLC as long as the owner lives within the same state as the LLC is being formed.
• You will need to state whether your LLC is going to be a single member pass through as a sole proprietorship. Later on, as the business grows you may consider changing the tax status to an s-corp. This is where it is key to speak with a local business attorney and your personal accountant so that it best meets your individual needs.

2. Get your EIN

3. Certificate of Formation (This is typically done through most states' Secretary of State departments.) 

4. Create an Operating Agreement (Not all states require this and you should check with your Secretary of State department.)

5. Register for your State Sales Tax (Your state tax ID is what wholesalers will refer to as your reseller permit or seller's permit number) Other local considerations:

• Unemployment Insurance Tax (some states require this)
• Business and Occupation tax (some states require this)
• Withholding Tax (some states require this)

6. Check with your local city and county for additional licenses and permits (if selling in-person - craft shows, fairs, markets, etc.)

• Typically done through the local city or county clerk
• Your city or county business license is what most people refer to as their “business license”