After opening a bank account and getting everything setup with the company, we decided that we needed to register as an S corp – Small Business Corporation.
Here is how we did it, we filed the IRS form 2553 and mailed it to:
Department of the Treasury Internal Revenue Service Center Ogden, UT 84201
We did a certified mail and kept a copy so we can verify that the form was mailed in accordance with timing restriction.
Here is the reference website,
Once we decided on company name and registration process. We filed the articles of incorporation with Secretary of States – here is the reference website
Once we received our registration confirmation – we needed to get an EIN number so we can open a bank account on the company’s name. So we filed the EIN Individual Request – Online Application. Here is the reference website,
Once we filled the application we were able to get the EIN approval by mail within a few days, which contained our EIN number and instructions on how and when to file the taxes.
At this point we were ready to open the back account. You can shop around for that, different banks offer different benefits and negotiation is always an option. Here is the reference website,
PS: Our articles of incorporation was returned once because we had forgotten to put the address in, so make sure to fill in the information accurately. We also requested a copy of registration – it is an additional fee but we wanted a copy.
You can always consult a CPA or a lawyer to help you with this process.
We had formed the idea of toysshare around 3 years ago, never got a chance to pursue it. But when we decided that I was going to quit my job I thought let me pursue the “toysshare” idea further now that I might have time! Well I was not too accurate on time but that story some other time, we did decide to go along with toysshare.
The first thing we did was to ofcourse come up with the domain and register the domain name – I already had a blog earlier on godaddy.com so I went ahead and registered the domain name toysshare.com – unfortunately toyshare.com was not available. But we went with the simplest one – you might want to try and come up with a creative one, we did try that but we couldn’t agree on any other name!
We did not own a company at that point and we reside in California, so we went ahead and registered a company in CA. Here is a link on what you need to do if you want to register a company in CA:
We went with a different name for the company, we had another domain already registered and hosted on godaddy so we went with helidigizen as a company name. At this point helidigizen was the company which is going to launch the portal toysshare.com.
Both of us being in the technical field we thought we would be able to buy some off the shelf software and modify it to fit our needs. But we did not end up liking any of the off the shelf software as we wanted to have the option of “Swap” which was not supported in most of them and a lot of those software did not come with the code that you can modify. As a second step we thought we can try to do it ourselves and we did start working on it and had a few different prototypes done, but that is when I realized, with 2 little kids I won’t be able to put as much time as I thought earlier for this project. And that is when it hit us that we might have to outsource the development even though we both might be able to do stuff on our own, we did not have enough time to get that done on our own!!
So moral of the story in this first part was : Even if you think you can do it – you might still have to end up outsourcing some things as you might not have enough time to do it.
Finding the right outsourcing company and having the right resources to provide them was a whole another story, and I will cover it in my next post
PS: Later we found out that we might have saved some money if we would have registered a company in some other state where the annual tax might have been waved! You should probably do that research if you are interested in saving the tax money.