Do you have to create a business plan before starting the actual business?

Starting a business and don't know difference between different types of corporations, LLC, DBA, etc.?

• Starting a t-shirt business and need a tax I.D. # to order supplies. I will have a website and take orders on the internet, etc. Not sure exactly what steps I need to take and what type of business entity to create. I am not going to really have any employees, at least initially, I will have a graphic designer and a screenprinter doing my jobs and helping me, but this will just be contractual employment, so I don't think this will have any effect on the legal portion of what I am trying to create. I'm really in the dark when it comes to what needs to be done and the steps I have to take. I have checked out www.legalzoom.com and plan on doing the registering of my business with them. If anyone has any advice it would be much appreciated. I am looking for the easiest and cheapest way to become legal and move forward with my business. Thank you

• Answer:

  You need at least these 4 things: 1. DBA (doing business as) or FBN (fictitious business name). -get this so that you don’t have to run a company under your name. File this at your county clerk's office. [$30. But about $60 to get it printed in the local newspaper...which is mandatory] 2. EIN (employee id number). -get this so that you don’t need to use your social security number. Get this on your state's board of equalization's website or office. [free] 3. Seller’s Permit or Tax ID- get this to pay taxes to your state or buy wholesale or sell products. Get this from the irs, online or other. [free] 4. Business License. Get this from city hall. [price varies] Get those in that order! If you will be filing for a business entity besides sole proprietorship, do so after filing for your DBA and before getting your EIN. You should NOT start a business "in the dark". 70% of ALL small businesses fail within the first year. Take a business class at the local community college. That's the best advice I can give. Do it before spending your money and using your energy and time. Good Luck. Any questions? Feel free to email me on here. PS; If you sincerely thought that DBA was a business entity... Do NOT begin a business. You need to learn much more. Do as I advised and take some business classes. Also, Check with SCORE. It is a great resource for aspiring entrepreneurs!