Small Business and Self-Employed Business Owners Help Center

A 10 Step Guide to Successful Small Business Management

Print out the Step-by-step Checklist

Make your business run better and more profitably

Table of Contents

Ten Building Blocks
to Success:
 1. Starting a Business
 2. Financing a business
 3. Company Name
 4. Office Equipment
 5. Hiring
 6. Business Insurance
 7. Advertising
 8. Efficiency
 9. Pension Plans
 10. Succession Plans

 Checklist for Success

 More Useful Advice:

▪Life Insurance

▪Disability Insurance

▪Medical Insurance

▪Long Term Care

▪Travel Insurance

▪Dental Insurance

▪Auto Insurance

        Resources

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Step 3: The Company Name

Your company name tells people many things and all are important. The name is also a form of advertising
and care should be taken to choose the name that best fits you and your business. For many small businesses the company name will appear on a business vehicle like a truck or van. So choose a name that sound professional and tells people who you are. Your company name will become your trademark.

When deciding on a company name you also mush decide on the form or structure of the business. There are five choices:

Sole Proprietor, Partnership, Limited Liability Company, C Corporation or S Corporation

Each entity type has advantages and disadvantages. But first you should do a little research on the Company Name. If you decide you want to be a Limited Liability Company or a Corporation you should check with
the Secretary of the State in which the business is domiciled to see if the company name you chose is available. Use this link to find the website of your Secretary of State:

www.statelocalgov.net/50states-secretary-state.cfm

    (1) Check on the availability of the Name.
    (2) If it is available then download the forms to hold the name for your business and to apply.

Highly Recommended: Check with you accountant or tax advisor for advice on the best form of business for you. While some forms of business sound good (i.e. Setting up a corporation) you might find that you are NOT saving any money at tax time and in fact may be incurring additional fees, taxes and a higher bill from your accountant who must file the paperwork with the IRS for you!

Types of Business Structures

(I) Sole Proprietor.
● One owner who operates under his own name (i.e. John Smith) or uses his name in conjunction with a business name (i.e. John Smith doing Business as (dba) Smith Contractors).
● The owner has unlimited liability for the operation of the business.
● Documentation not needed. Highly recommended: Obtain Certificate of Adoption of Trade Name with
your Town Clerk.
● No tax return is filed and the profit (or loss) shows up on his own tax return.

(II) Partnership.
● Two or more individuals working under a common business name.
● Partners have unlimited personal liability for the operation of the business.
● A Partnership Agreement is usually signed by all partners showing who the partners are and the percentage of ownership for each.
● An Informational Tax Return is filed (no taxes paid by the partnership). Profits (or losses) are reported by each partner on their personal tax return.

(III) Limited Liability Company (LLC). It's a Company and NOT a Corporation.
● An owner is called a Member. Limited number of members.
● Members have unlimited liability for the operation of the business.
● Certificate of Limited Partnership is filed with the state and a Limited Partnership agreement is executed.
● An Informational Tax Return is prepared but profits (or losses) flow through to the members and are reported on their own tax returns.

(IV) C Corporation.
● Unlimited number of shareholders.
● Limited Liability for shareholders.
● Articles of Incorporation filed.
● Corporate Tax Return filed. Corporation is taxed on earnings. Shareholders receive taxable dividends.

(V) S Corporation.
● Limited to 75 shareholders.
● Limited Liability for shareholders.
● Articles of Incorporation filed.
● Informational Tax Return prepared. Corporation not taxed. Profits and losses flow through to shareholders.

Applying for an Employer Identification Number (EIN)
At some point you will have to apply for an EIN (except for a sole proprietor) for tax purposes. Either ask your accountant to file for you or go to the IRS website and file online. The web address is http://www.irs.gov/businesses/small/article/0,,id=97860,00.html

Move on to Step #4: Office Equipment.

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