Forums: Discussions for entrepreneurs and small business.

Hi all,

I`m in the process of preparing my sole proprietorship business to incorporate as an LLC in NH. I also have yet to create a business bank account, which I`ll need to do in the next couple of months.

I`m wondering whether it would be better for me to create the bank account first as a sole proprietorship and then incorporate as an LLC, or incorporate first and then set up the bank account? Maybe it doesn`t matter either way, but I`d like to minimize hassles with paperwork and expense if possible.

Thanks,

Scott

Hi Scott
Incorporate FIRST, then the bank account .....
Bank accounts are tied to social security numbers or EIN #s
After you start the INC or LLC, apply for a EIN number. It will be something like 37-#######. This is the number the IRS will use when addressing your business. 

Scott,

After you form your LLC, you`ll receive a certificate of formation (or similar designation in NH).  Once you receive that, in addition to your EIN#, you would then go into a bank with those documents to open your account.


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Pepper Law Group, LLC
21 E. High Street, Suite D
Somerville, NJ 08876
informationlaw.com
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The Legal Considerations of Starting an Online Business

I agree with above:

1- get mailbox (for a registered agent)

2- get LLC

3- get EIN

4- get business bank account

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Travis Tschepen
Hibachi Bros. LLC

--My goal in life is to be as good of a person my dog already thinks I am.--

I would just add that some banks will want to see your Articles of Incorporation from your state`s Secretary of State office. Basically what pepperlegal said; different states call it different things.

Thanks for the replies - it looks like there`s a strong consensus in incorporating first. I will make that my next step, then.

Regards,

Scott

LegalZoom.com, my friend. Best $249 I ever spent; well, at least that I would admit spending...

Dont make this mistake of using yourself as the registered agent. I used to for one of my companies and recently had a scare. I own an apartment building in Los Angeles and am trying to evict a tenant. the tenant counter sued me and my LLC was served. I was acting as the registered agent for my own company so they served me at my home adress "1st mistake` of course I wasnt there to accept it ( I an constantly on the road working or traveling) and the sheriff came and left. a few weeks later a Sheriff buddy informed me he saw me on the list of people they served.

I imediatly went to the court house, pull out my case number and realized that if I hadn`t found out the judgement was going to default against me. I contacted my lawyer and he ripped me a new one for acting as my own registered agent. He had me switch my entities to a company that does this, they even prepared the change of agent form for me. I found out that by putting myself as the registered agent for my company I am require to be there from 8-5 m-f if in case i ever get served, and also my home address is on public record. (this explains someone breaking into a home of mine in GA where I listed myself as the registered agent). it ends up on a new business list that states sell. New business means new computers, desks, ect.

Here is a really informative article on this http://www.myllc.com/how-to-choose-registered-agent.aspx

just passing on some new knowledge.