What is the 1st thing you must do to set-up your business?
KNOW THAT THERE IS NO LEGAL ADVICE BEING PROVIDED OF ANY KIND IN THIS BLOG.
To start off. You must know what you want to serve or produce (in a nut-shell: what is it you want to do every day of your life). If you are unsure of what you want to create on a daily basis you will never be happy. All successful businesses derive from people being happy with what they do. A business is only as great as the “Captain of the Ship”. So pick something you love. You will be surprised how everything else falls into place. Next, understand that you have to be a master at whatever it is you choose to do for the rest of your life. Now that we have that covered, let’s get right down to it.
After you have chosen what you want to do you will have to register it.
NOTE: All organizations are only to tell the state, government, and the customers how they can sue/punish you. It is an agreement that you can be sued for mal-business practices. That is the whole point of filing. It is also illegal to claim you are an organized entity (business: such as saying you are an LLC, but really you are self-employed– not registered to any state or government).
Depending on what type of business you want to do… If you are going to be the only owner of your company and do not want to take the time to become a Master of Law, then your only choices are:
PUBLIC COMPANIES
-Single Owner of a Company:
Sole Proprietor
o Organization
· You can be sued for everything!
Limited Liability Company (aka: LLC)
o Organization
· You can only be sued for what you invested into the company.
If there is more than one owner to a company your only choices are:
- More than 1 Owner to a Company:
Partnership
o Organization
· You and your Partner(s) can be sued for everything!
Limited Liability Partnership (aka: LLP)
o Organization
· You and your Partner(s) can only be sued for what you all invested into the company.
Subchapter S-Corporation (aka: S-Corp)
o Organization
· Major protection but a hefty fee. Taxes are even greater because of it. The shareholders own the company and the Shareholders pay the taxes for the company.
Subchapter C-Corporation (aka: C-Corp)
o Organization
· Major Protection but a hefty fee. Taxes are even greater than S-Corp because it offers the most protection in an organization. The shareholders own the company and the Shareholders pay the taxes for the company, and they individually get taxed (basically get taxed twice). Why do you think major companies got a bailout during the 2007 stock market housing crash? Because, they paid insurance for it– Approved and supported by the IRS).
Non-Profit Organization
o Organization
· Note: There are many types of non-profits one being “Foundations”. Foundations are required to only give 5% of their profits away and the rest they get to keep. Why do you think Politician’s have you donate to their Foundation when they are running for office, or why do you think sports teams such as the Dallas Cowboys, Chicago Bulls , etc…have you donate to their foundations– think about it.
* There are 2 levels of tax exemptions:
– Partially
– Fully
· Afterwards you must file with the IRS for your Non-Profit to be tax exempt. If you have 25 employees or less you can file for an E-Z form, which takes 30-90 days for approval. If you have more than 25 employees then you have to file for the regular tax exempt form which takes about 90-180 days. Any profits (assets) you receive before your Non-Profit is approved to be taxed exempt, is subjected to full taxes!
Incorporated (aka: Inc.)
o Organization
· You have to still file under:
* Sole Proprietorship
* LLC
* Partnership
* LLP
* S-Corp
* C-Corp
* Non-Profit Organization
· Then when you incorporate it you will say which business owns the business you are trying to incorporate. The company that is under (owned by) another company is a company under an “umbrella”. Such as: Youtube™ is incorporated by Google™. In other words, Google is an “umbrella” company.
PRIVATE COMPANIES
- Now for those who want to be a private entity, there are other options.
Private Association (aka: PA)
o Organization
· Have to file with state. It is still considered an organization by the government, but not by State Laws. So this one is a little tricky. Best for doctors who want to practice alternative medicine. Just hope you do not get sued on a federal level.
Private Members Association (aka: PMA)
o Non-Organization
· This is the only one that you do not register with the state. It is recognized by the government as a non-organization (“organization” is a legal term and not a law term. It can be confusing, but all legal statues fall under Water Laws. Think of it like this: All bourbons are whiskies, but not all whiskies are bourbons. As Liquor is to Laws, whisky is to Water Laws, so is Legal Statutes are to Bourbons). This is the only one that is sovereign, but in order for it to be fully protected you have to be sovereign too. Otherwise, they’ll come after you. This one you need to know the law, not the legal system. This is the only one that you only pay sales tax and sales tax only. You are still required to file with the IRS, and pay sales taxes for state and government…that’s it. How you create it is by having all of these forms:
NOTE: Banks can notarize. You also can only go for a “For-Profit” Bank, such as:
- Chase
- Bank of America
- Frost
- Wells Fargo
- Etc…
You cannot submit your documents to a Union bank, such as:
- Velocity Bank
- Teachers Credit Union Bank
- Texas Union Bank
- Etc…
You will have to create your own documents (can find templates online).
- A Memorandum and notarized
- A Business Agreement and notarized
- A Membership Agreement and notarized
- An Articles of Association and notarized
- A Business Trust and notarized
You will have to file on your own (or with your business partner(s), and make sure they become sovereign too, or they can go after them for any mistakes. Not worth it! So you all have to be fully in it or not at all.)
- File for Sales tax only.
- Get an EIN from www.irs.gov
- Get an e-File NUMBER (aka: TIN Number) from the IRS by filing online at www.irs.gov
- Get a Dun & Brad Street number for your business at www.dnb.com
For all organizations you must register with a state of your choosing. In order for it to work you must have a physical address. This is because they need to know where to serve you if your entity is being sued. It only cost to register with your state you are registering your business in. You can file online for free, though the state will charge you. You only file with one state and one state only.
If you plan on being a non-organization you must first make yourself sovereign. You can look it up online, there are businesses that do all the paperwork for you now, if you are pinched for time. You still want to learn it though. You cannot have a lawyer represent you. You have to represent yourself or you automatically (voluntarily) are giving up your Water Rights and no longer sovereign, until you claim it right back. So, learn the 3 main LAWS: WATER, LAND, and AIR.
TO SUM UP
ORGANIZATIONS:
1. PICK an ENTITY from the list provided
2. FILE for an EIN with the IRS
3. FILE for a TIN (Tax Number) with the IRS
4. FILE with desired STATE
a. (A physical address you can receive mail that is NOT a PO. BOX).
5. OPEN a BANK account with ANY BANK
NON-ORGANIZATION:
1. PICK a P.M.A
2. FILE for an EIN with the IRS under “Trust”
a. (choose either Revocable or Irrevocable)
3. FILE for a TIN (Tax Number) with the IRS
4. CREATE a Business Trust and get it notarized
a. (Revocable or Irrevocable only, whichever one you filed your EIN as)
5. CREATE an Articles of Association and get it notarized
6. CREATE a Business Agreement and get it notarized
7. CREATE a Membership Agreement and get it notarized
8. CREATE a Memorandum and get it notarized
9. OPEN a BANK account with “For Profit” Banks Only
10. REQUEST a Dun & Brad Street Number for your business
In conclusion, it is simple with Organizations because the state did all the work for you. Just go online and do it. It really is like a 15 minute filing max, for all 5 steps.
For a Non-Organization it will take a little longer on account you have to be dedicated into knowing the Law not the Legal system. You also have to create your own documents and take it to a bank for approval. That is really it.
ONCE AGAIN THIS IS NOT LEGAL ADVICE. THEY ARE DISCOVERIES MADE AND OUR OPINION, BASED ON PERSONAL EXPERIENCE AND RESEARCH.
