GETTING STARTED IN COMPUTER RESELLING

Choosing a name for your new business should be your first step. This is important because choosing a good name will help generate more sales for your business. A business name that accurately represents your business will give others the impression that they can trust and have confidence in you.

Think about it! If you were going to buy a computer from someone, you would have more confidence in "David's Micro Center," then "David's Gadgets & More." If the business name is anything other then your own name, you will need to file for a Fictitious Business Name registration (Also known as "Doing Business As" (DBA).

You will need to register with your state as a reseller. In California it's the State Board of Equalization. In Arkansas, where we did business prior to CA, it was the Department of Finance - Sales and Use Tax. Call the information line of your County offices to obtain the name of the agency. Or look at any resellers License posted in a local business and see what Department issued it.

YOU CAN ORGANIZE YOUR BUSINESS THREE WAYS

1. PROPRIETORSHIP: A proprietorship is the least expensive to form and usually nothing more than a D.B.A. (doing business as) name and possibly a local business license.

This type of ownership allows you to have the maximum control over the operations of the business, but also creates maximum liability. You will be personally liable for all debts by your business. This is a popular choice for a one-person operation.

A basic resellers license is the key part to start buying from any manufacturer or distributor. A proprietorship would also meet these requirements.

2. PARTNERSHIPS: If you need a business partner, either for financial or expertise reasons, the best way to outline your business relationship from a legal standpoint, is to form your business as a partnership.

Maybe you have one or two partners wanting to join with you in your decision to sell computer hardware. You may be the outgoing salesman, and your other two partners love to just be working in the back room configuring client's systems. Maybe you have someone with more accounting abilities. Let them take care of ordering or helping wherever needed. These roles should be worked out between all involved before you get started.

3. CORPORATION: A corporation is the most formal form of business that one may consider. You can have a corporation even if you're the only one in your business or even have partners involved This is the more expensive way to go, but offers the least liability.

You can still do this after your company has successfully started and become profitable on a consistent level. I recommend seeing an attorney at this point to help in forming your corporation. They will assist you in filling out the proper forms and sending them to the right government agencies.

FICTITIOUS BUSINESS NAME

Your state will probably require you to search for a fictitious name statement to make sure there is no other businesses with the same company name as yours. In California this was a $10.00 service fee. Next, we were required by law to have our new company published every day for 4-weeks in a local paper. Later, we found out that it could also have went in a local neighborhood paper, saving us $20.00 off the $40.00 we were charged in our local paper.

BUSINESS CHECKING ACCOUNT

You will also need to open a BUSINESS checking account. Make sure you bring in the original copy of your resellers permit, they will need that before you even try to open an account. There might be other things, like a copy of the fictitious name statement receipt. Call ahead and ask.

Pick a bank dedicated to serving the business community. This way if you plan on doing business outside the U.S., they will be more inclined to accept checks from foreign companies.

Should you open a store front business, getting established with a merchant account is needed. Most banks don't deal to kindly with home based businesses wanting a merchant account, even if their credit is perfect. We found a company by the name of Cardpay, that has a 97% success record getting home businesses approved.

When contacting a manufacturer and distributor of hardware, these companies will mail or fax you forms to fill out on your business. They will need the name of your bank, a copy of your resellers permit in order for you to buy wholesale.

LINKS TO HELP YOUR RESALE BUSINESS!

Probably the first question you might have is, where do I go to get my resale permit? For years, we told people to just look up the state agency in their local phone book. Each state agency will be called something different. Here in California it's called the "Board of Equalization". Other offices might be called the "Department of Finance and Administration." Each state is going to have their own rules how to get your company set up. So check out the following government link to the state agencies which are now online. Look for sales tax information for your state.
http://www.nasire.org/stateSearch/displayCategory.cfm?Category=states

Chambers of Commerce Directory:
You can also Search for Chambers of Commerce or Cities-States-Provinces around the world Includes hotlinks to their Websites and Email Addresses. This is another good way to find tax and other information for each online city.

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Find out if you have what it takes to start a business? What business is "right" for you. What it takes to get started.

First Steps - How To Start A Small Business (SBA Gov.)
Starting and managing a business takes motivation, desire and talent. It also takes research and planning. Like a chess game, success in small business starts with decisive and correct opening moves. And although initial mistakes are not fatal, it takes skill, discipline and hard work to regain the advantage.

Entreworld.org
Whether you've already started your business or you're still in the planning stages, there's a lot you need to know. This section is packed with the resources you need to build a good foundation for the future of your business.

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