Before you incorporate your company it is important to evaluate the different states and see which one offers the most benefits based on the type of business you want to open be it a corporation or LLC or even a partnership. Washington DC is a great consideration for starting a business. The economy is relatively steady in comparison to other states. The government, who can become a great customer, is located in Washington DC. The first motorized car was introduced in there in 1888. That is over 125 years of new business starting and succeeding in DC. Consider the steps needed to start your business, opening a bank account, and learning what rules and legislation are in place.
There are many steps to starting a business. The business idea should be evaluated for viability by researching the market. A business owner evaluates projected start-up costs and creates a business plan. There are pieces of information that a business needs to acquire, such as Federal tax ID number, license and permits. A marketing plan and website will increase visibility to the business. Create invoices, service agreements, letterheads for business use. Finally, consider a trip to the bank.
Stop at the Bank
A bank has several things a new business will need. The most basic is an account. Hopefully, you already received that Federal Tax ID number, because it’s usually required. A bank is a business with a service and product to offer. Take caution of limited time offers. Look around for the best interest rate. Find an account that may come with amenities. Some banks offer free payroll processing or a security deposit box. High yielding accounts usually work well for businesses. However, it’s important to know that the business can meet the terms of the account. Some require a high balance. Once you’ve opened your account, consider talking to the bank about other services, like financing and credit.
Follow the Rules
Incorporation is the means of a business owner separating personal life from the business. It can protect against liability of debt and has tax advantages. It also makes stock offerings easier. Becoming incorporated in Washington DC requires a name that includes corporation, incorporated, or company. An Article of Incorporations should be filed. It requires the names and addresses of the officers, stock details, and contact information for a registered agent. The business must declare at least one director. Once the business becomes incorporated, there are record keeping requirements. Records of books and account records should remain at the primary site. In addition, minutes of the shareholders meetings and records of the shareholders names and addresses. Biennially, a franchise tax will be required with an annual report.
Washington DC has much to offer a start-up business. A business owner should follow the steps of becoming established. Find services, such as bank accounts, that benefit the business. Understand and follow through on legislature and rules regarding the establishment of your incorporation. If a business owner follows those points, Washington DC may become the home to a great success.