Tony
12-08-2009, 11:27 AM
Selecting your business name is a very important and the first thing to be done. From that point on, everything is registered with this name and it becomes the "face" of your business. Everyone you deal with will remember you as the guy from "ZXY Transport", even if they know your personal name. Your business name will be displayed on all of your paperwork and on the side of your truck. All of your licensing will be done in the business name. All of your customers will need to know this name as well. Select a name that is "timeless", or does not become irrelevant due to being associated with a point in time.
You will need to decide on a business structure at the same time. There are several options including: Sole-Proprieter, Partnership, Corporation, or LLC(Limited Liability Corporation). I typically suggest the Corporation route, and for tax purposes the "S" Corporation as it taxes you as an individual. You need to know the differences between these company structures before making a decision. Do not simply pick one just to have picked one without understanding them. This again will stick with your company from this point on. If you select "Sole-Proprieter", then your name will be on everything and you may have to file a DBA or Assumed Name forms with your local government.
As a Corporation you have the benefit of being able to complete forms and applications in the company name, with you being the responsible person by signing the forms. The company cannot actually sign forms, so you are a representative of the company. This form of business will also protect you from possible legal liabilities in the case of an accident or other. You can be protected from losing your home, etc from an unpreventable accident and the such. There are many reasons for the various structures. My biggest and foremost suggestion is to contact an attorney for a consultation to determine the best for you. You do not have to hire the attorney at that time and file the papers, just make sure you understand everything previous to deciding.
Also, keep your business name short! Completing all of the paperwork required ona daily basis could make your hand very sore if you have to write out a long company name. On the plus side, the shorter and simpler, your customers or potential customers will remember you easier!
You will need to decide on a business structure at the same time. There are several options including: Sole-Proprieter, Partnership, Corporation, or LLC(Limited Liability Corporation). I typically suggest the Corporation route, and for tax purposes the "S" Corporation as it taxes you as an individual. You need to know the differences between these company structures before making a decision. Do not simply pick one just to have picked one without understanding them. This again will stick with your company from this point on. If you select "Sole-Proprieter", then your name will be on everything and you may have to file a DBA or Assumed Name forms with your local government.
As a Corporation you have the benefit of being able to complete forms and applications in the company name, with you being the responsible person by signing the forms. The company cannot actually sign forms, so you are a representative of the company. This form of business will also protect you from possible legal liabilities in the case of an accident or other. You can be protected from losing your home, etc from an unpreventable accident and the such. There are many reasons for the various structures. My biggest and foremost suggestion is to contact an attorney for a consultation to determine the best for you. You do not have to hire the attorney at that time and file the papers, just make sure you understand everything previous to deciding.
Also, keep your business name short! Completing all of the paperwork required ona daily basis could make your hand very sore if you have to write out a long company name. On the plus side, the shorter and simpler, your customers or potential customers will remember you easier!