Do it to learn…

I went through a very interesting experience today and it was something I have never done or experienced before.  But I want to share it because as I was sitting there experiencing this experience (haha) i came to the conclusion that this was something that everyone should experience as a way of learning.  It cost very little money and its something that by doing can be a learned skill and used to add tools to your tool belt so to speak.

THE CHALLENGE:

I am presenting a challenge to everyone.  My challenge is to think of a business you can start.  It can be anything you may have always wanted to do or something you come up with that might be fun or interesting (You can even make a business with your name as the business and you never know what you can turn it into.)  Come up with a business name for it and make it an LLC to make things simple so that your personal belongings can’t be affected just in case you get sued and you can’t sue me for giving you this crazy idea

Once you have your business name go and register it in your state and make it a legal business and get an EIN for it. This will cost about $50 to do.  Then depending on your business you might need some licenses.  Most businesses unless your providing a specialized service won’t need any specific licenses.

Once you have done this you now have a registered business in your state.  Once you have done this head to the bank of your choice and open a business account.  You will need your articles of corporation and EIN number which you will get when you register your business.  Open up a business checking account.  Get the basic checking account so that it is totally free.

This is the challenge and I would love to hear from you if you actually did it and tell me about your experience.  Here are the benefits:

1) You have now learned how to create a legal business with no risk and so when you start something that may be for real you will know exactly how to do it.

2) You have created a legal business which you can now do things as a tax write off that are business related.  Another good skill to learn when you start making big money and you need to know how the earnings and tax system works for personal businesses.

3) Many banks will upgrade your personal accounts for free that you have with them if you also business bank with them.

4)This might push you to actually start something you have always wanted to do but have been scared or just have not been able to take the first step.  This is the first step.  When you have a formed actual business you might be surprised how your mindset and work ethic might change towards your business or idea.

The overall experience will be positive and worthwhile.

If you decide it was a waste of time then you don’t renew your business at the end of the year, you have not made any money so there are not any taxes and you have lost maybe $100 and have the hands on experience and knowledge that you did not have before and would not have gotten until things were actually serious.  So why not learn when the stakes are low? But you never know, it just might be that first step you were always afraid to take….

Good luck and please share your experiences with me!!