Incorporation process

[Name of the Professor]

Table of Contents

INTRODUCTION3

DISCUSSION3

Purpose of EIN3

Procedure for acquiring EIN from IRS3

Limitations to acquiring EIN4

Obtaining Insurance for the Business4

Property Insurance4

Liability Insurance5

Finding the right insurance for yourself5

Finding a niche for your restaurant business5

Legal Structure6

Location of Restaurant6

Management6

Marketing plan6

Licenses, Finances6

CONCLUSION6

REFERENCES8

Incorporation process

Introduction

The restaurant industry is a booming industry in the US. It offers a tremendous opportunity for prospective business owners. We look in depth about the things to be considered when launching a new business. Clear directions are provided related to the steps for successful launching of a business.

Discussion

Purpose of EIN

Employer identification number is used solely for the tax administration purposes and should not be used for any other activities which include the sales, lotteries and auction for tax lien. Businesses can use the online system to make tax payments and to file for tax returns. Employers can make payments for EIN through online or via telephone means (IRS, 2012).

Procedure for acquiring EIN from IRS

For getting an Employer Identification Number business owners need to go to the Internal Revenue Service website and apply online. A set of questions are there on the website, which a business owner needs to answer. Once all the verifications are completed by the IRS, the business will get the EIN immediately. Once a confirmation for the EIN number is made from IRS, businesses can then download, save and print their EIN numbers.

The application for the EIN needs to be made in one go. Once you are filling for the EIN, inactivity on the form page for 15 minutes will mean that the whole procedure will have to restart due to the security reasons. The business will have to determine its legal structure that whether it's a sole proprietorship business or a public limited company. Then details will be asked for the purpose of acquiring ETN. Authentication will be done by asking for ITIN, then other details such as address will be validated and then finally ETN number will be issued (SBA, 2012).

Limitations to acquiring EIN

For obtaining an EIN number the business must be located within the premises of the United States. Foreigners those not having an individual tax identification number cannot file for the EIN. If the business has been incorporated outside the United States territory, employers can not apply for EIN online and will have to apply for it through IRS telephone hotline. If a third party has been assigned by business to obtain EIN number on its behalf, issuance of EIN will not be possible without full authority being given to the third party. There is also a limitation that one party in a day can only apply once for the EIN.

Obtaining Insurance for the Business

It is always a good idea to obtain insurance for the business, even if the firm is incorporated as a limited liability company. The most widely acquired insurance policy being acquired by businesses comes under the banner of property and liability insurance.

Property Insurance

Any damage inflicted to the business property will be covered under the property insurance ...