Declassified SCAD Survival Guide

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Getting Started

Desmond Du

Last edited 30 days ago by Desmond Du

Introduction

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Starting and running a business doesn't have to be daunting. It's not just about renting an office space or hiring employees. To me, it's about getting the official license and registration to do what you love and get paid for it. And setting up your own LLC? It's a breeze! If you can sign up for a service account, you can start an LLC just as easily. Here is a short guide to help you get started with forming your own LLC.

1. Business Formation

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When delving into business formation, think of it like this: an EIN is your business's personal license plate, while the LLC is the vehicle itself. Just as a license plate uniquely identifies a car, an EIN distinguishes your business for tax purposes. And much like how a car is recognized by its license plate, an LLC operates under its own unique legal identity provided by state registration.

EIN (Employer Identification Number)

An EIN is a unique nine-digit number assigned by the IRS for tax purposes. While not mandatory for LLCs, it's often needed for banking, taxes, and other business activities.

To apply for EIN, provide your business's legal and trade names, entity type, reason for applying, principal address, contact information, responsible party's SSN or ITIN, business type, estimated employee count (if applicable), start date, and accounting year closing month.

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Apply for an EIN⁠

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LLC Business Registration

To register a Limited Liability Company (LLC), you'll need to provide the business name, registered agent, business address, ownership details, purpose of the LLC, NAICS code, and filing fee (~$125). Consider drafting an operating agreement to outline internal workings. Check state-specific requirements and consult legal advice if necessary.

In New Jersey, you can register your business online through the New Jersey Business Formation portal:

New Jersey Business Formation⁠

Registered Agent

What steps should I take if I plan to start an LLC in New York or another state while currently living in Savannah, with the intention to relocate later?

If you're starting an LLC in New York from Savannah but plan to move there later, appoint a registered agent in New York. They'll receive legal documents on behalf of your LLC, as required by state law. Choose someone reliable with a physical address in New York to fulfill this role.

2. Financial Infrastructure

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Business Checking

Capital One Spark Business or

Chase Business Complete Banking

Business Credit Card

Chase Business Ink

Accounting Software

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`Wave`⁠
- Invoicing

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Wave is great for invoicing because it's free, user-friendly, offers customizable templates, automated reminders, various payment options, secure transactions, integrates with accounting software, and includes expense tracking.

9. FAQs

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What are the benefits for international students in starting their own LLC?

As a student on F1-visa and OPT, you can start and own a business.

This allows you to stop the 90 day unemployment clock,

and it also allow you to make a business bank account to separate your business and personal funds.

What to do after you start an LLC to retain your OPT status

Update on the SEVIS website

Inform ISSO that you have formed an LLC and provide your Employer Identification Number (EIN) for your business They will enter the number into your employer entry in the SEVIS System in your record

When in doubt, always consult ISSO.

Can you make your LLC E-verify?

Yes, but you can't do a STEM extension for yourself; an employer-employee relationship is required.

Some have transferred LLC ownership to a business partner to qualify for the STEM extension under their company.

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