So you think you're ready to jump into the entrepreneurial world and start your own business? Before you start shopping for Lambos online. you need to take a chill pill for a second and actually understand what it takes to start and succeed your own business. That's because so many people jump into a new business and have no idea what they're doing without learning the initial steps. That's why 20 of businesses fail in their first year, 45 percent of businesses fail by year five, and 65 percent fail in 10 years.

Look, I'm not trying to scare you, but only one out of four businesses actually make it to the 15-year Mark And these stats are getting even worse as our world gets more and more fast paced. I Created my first business when I was 16 years old. yo what's up guys? Sean Here and uh, it's my crib and that business is still standing. 11 years later and I've launched a couple other businesses along the way.

And it's because I have very fundamental practices for launching and starting a business. And once you understand these, it makes your life a million times easier for finding success success with your business. So if you're not serious about building an awesome business, then click off this video because this is not for you. This is for the people who are serious about getting to the next level.

We don't have time for the wannabe entrepreneurs, right? So if you're ready to rock and you're serious about getting to the next level, then I'm going to be breaking down the five necessary steps to starting your own business in today's video. Step one: you're going to want to plan your business and Reserve yourself a name. Two, you're gonna need to register your business, three, obtain a federal EIN number and any state tax IDs four, which isn't always mandatory, but you need to apply for certain licenses and permits, and then five, you need to open yourself a business bank account and before I jump into each step-by-step walkthrough. For each of those steps, you need to understand what a actual business is.

99 of people watching this video is gonna fall into the same category of just having a simple LLC business. So what is an LLC Well, an LLC stands for a limited liability Corporation Register in your business as an LLC essentially tells the government that hey, my business is a separate entity in comparison to me. As a personal individual, this comes with a whole slew of benefits because it essentially says hey, everything that happens on the business is separate for me personally. Like, if someone gets hurt on the job or you run into an issue with the lawsuit with the business, you are going to have a lot harder time being personally liable for that.

Which is a good thing. You don't want someone suing your business and then taking everything you personally own. You only want the business assets at risk and more importantly, from a mortgage standpoint. Same goes for the income.

When your business generates income. it's your business that is generating income. When you personally generate income, it is your personal income. They are separate.

I Know that a lot of people starting out you are the business, but you need to understand that the business functions completely separate in comparison to you. And this is hands down the most important thing to understand when you are starting out in an entrepreneur life. The sooner you can separate your business from being a legit business to you personally, the better off you're going to be. Not only from a qualification standpoint we're going to get credit cards and loans and all that good stuff, but also from a liability standpoint for when you run into issues.

It's not if you have issues with your business, it's when I can't stress how important this is, but before we go into how to actually start that LLC Let's start with step one and step one is the most fun you'll have in creating a business out of this entire list. It is where your creative juices come into play and that's figuring out what your business actually is and more importantly, naming. I Know this sounds simple, but you're going to want to spend the most amount of time in this part of the process. The sooner you can figure out what your value proposition is, the better.

and essentially all that is is figuring out what you as a company are going to do in exchange for money. And once you figure out how you're going to be bringing this value to customers, you can name it. This is surprisingly extremely hard to do because of how many businesses actually exist in today's day and age. There's like 32 and a half million registered businesses in the United States So I Know it sounds simple just to name a business, but there's a really good chance that whatever name you want is probably already taken.

So creative. Listen names. and once you've narrowed it down to maybe five or ten names, you're going to want to secure that. Get the website domain, get the social media handles, Check your state Regulators office to see if there are other businesses already registered as that trade name.

But once you've got all that dialed in, you can move to step two. At this point, it's time to actually register your business with your local government. And to do this, Every state is going to be slightly different. However, Most states are going to require just two things: one your operating agreement and two your articles of organization.

Your operating agreement sounds very complex, but it's very simple. It's essentially just a document that states who's going to be doing what with the company. So it pretty much eliminates that group project term mentality where one person's doing all the work, but everyone in the group's getting the good grade for it. This operating agreement prevents that.

Now most people when they're starting their first business, they're starting it solo. They don't have Partners So most of the operating agreement is going to say hi, my name's Sean Malku These are the things that I'm doing and this is how the business is going to function. Boom Simple. If you have partners, then this document is going to basically state which partners are responsible for what and at which ownership percentage they have in the LLC.

Now this is a binding contract. You're going to want to grab a template from online? just Google Operating Agreement: There's going to be tons of simplified versions on there. You'll be all right. Then The Articles of Organization is just a super simple document that you get from your local government.

You fill out and you submit it to them. This is what actually establishes your LLC with the state. Every state typically has a templated form that you just fill out. So just Google Articles of Organization for insert stay here.

So for us, Articles of Organization for Arizona it's super easy. Once You have that filled out. You're going to submit it with your State's corporate commission. To do that again, go on.

Google type in state of insert State here. Corporate Commission Entity filing. It'll be the first page for nearly every single stage. This is where you upload that document and it goes into their queue to be reviewed.

Keep in mind, this is going to have a very small fee depending on your state. If you're serious about growing your business, then this fee means nothing to you. Easy peasy! Now moving on to step three: You need to get federally registered so Uncle Sam can collect this piece of the pot. This is where you get your official EIN number.

Now EIN number is essentially a Social Security number. but for your business. So remember we're separating things business. Personal Business has an EIN number.

Personal has a social security number. We are separating those in the eyes of the IRS. Good news is that EIN numbers are 3.99 so you can enjoy that savings before you absolutely lose all of your profits to the government. And to get your EIN.

It's very simple. You go to the link I'll leave a link down below or if you just Google of course Google's our best friend. EIN number Registration: It'll take you to the IRS website. It'll walk you through the form that you fill out and you'll get your EIN number instantly.

Funny how they're like really quick in getting you an EIN number so you can pay taxes. but anything else that they do is gonna take forever. All right. Moving on to step four: This one does not apply to everyone, but at this point you need to be getting your license, lenses, or permits if it's applicable to your business.

Technically, you are a legit business. Now you have your LLC filed at the state, you have your Federal EIN number. So now you can go ahead and get any sort of license or permit for your business to be in good standing. And really, you're just doing this so you don't have any fees or penalties with your specific industry.

If you're a contractor, get your contractor's license. If you're selling Goods then you need to get your transaction privileged tax license I Can't really give guidance for this in this specific video because of how different it can be I Know what it takes from a mortgage company standpoint. We have so many licenses state and federal and all these other bonds and Surety things that we need. but again, it's going to vary based on your specific industry.

And then step five, it's time to start making some money moves Now that you have everything set up that we just went through, you can now open a business bank account. And yes, you need a business bank account. I Know there's going to be some minimum amounts you need in the account or maybe some startup fees for a business bank account. but I promise you you need it.

Remember Everything about this video video is setting you up for: Success You need to separate your business from your personal. You're gonna have your personal bank statements and your business bank statements and all of your business income needs to go in there. And anything your business pays, you can be transferred to your personal. but do not make the mistake of taking business income and putting it in your personal account.

You need to separate them and it's super easy to get one. I Personally recommend Mercury I'll leave a referral link down below I Think if you put like ten thousand dollars in that account in the first three months, then we both get 250 bucks. you know? I'll scratch your back, you scratch mine. but I Love Mercury Because it doesn't cost anything to get set up, they have basically no fees for anything that you do and they are super modern.

Bank Do not pay me to say that besides the normal referee they give to everyone. I Just really, really, really love their platform. However, if you want a more traditional bank or you want to do more stuff in person, then go to your traditional Wells Chase Bank of America They will have minimum bank balance accounts. they might have startup fees, and they might have certain amounts you have to hit each month to stay in good standing with them.

Do your research on banks, it doesn't really matter at the end of the day, However, you do want to get set up with a business bank account and when you go to do that, they're going to ask for a couple of items. They're going to want: your articles of organization, your operating agreement, your EIN number, and any licenses or permits you need to operate your business which is essentially the exact same things we just did throughout this video. So that brings it all full circle. Look: Setting up an official LLC and doing these necessary steps I Promise you will set you up for success in the future and open up way more opportunities for you as an entrepreneur.

It's weird, but the sooner you get serious about your business and you do these five steps, the better off and more successful you'll be. So don't be another statistic. Get started today and get serious about your business. It doesn't cost much to do it and you'll thank me for it later.

Anywho, that's it for this video I Hope you enjoyed it I Hope you learned something new if you did like. Button, comment all that good stuff and check out some of the other great videos I have on this channel that will continue to set you up for Success See in the next one Thank you Foreign Foreign.