- Are you going to create your own work and sell it?
- Are you going to work for others as a contractor?
- Are you going to comingle any other types of business ventures with the business?
Establising the type of business comes first. If you are going to crate Intellectual Property – you will need to protect it. Each propertyhas its own set of demands for developing, producing, selling and distributing. If you are going to pick up the work of others you will be a contactor and the work that you do will not be owned by you. If you are going to do both, you need to prepare in both ways.
Preparing to Develop both types of businesses Intellectual Property and work as a Sub Contractor
- You will need a comany name. Simple is best. Tryto think of a name that will describe your business and attract others or at least the audience that are your consumers. Pick a name that you will not be tired of in 50 years because if you would be tired of it so would others i.e. The Purple Zipper Sewing and Craft Store isn’t too good where Everything Sewing and Crafts might attract a larger audience.
- Make sure you can get a corresponding url. lime everythingsewingandcrafts.com. If you cann ot get the url think again about the company name because you are likely headed into infringements.
- Go to either the Secretary of State or another company and register you name as an LLC 9likely) (read about LLCs) Limited Liability Company.
- Get an Employer Identification Number or EIN #
- Make a Corporate Resolution
- Open A business checking account using the EIN # and the Corporate Resolution
- Make an operating Agreement (very important)
Now you are in business. All of this should not cost you more than $500. If you can’t invest $500 then keep working for others until you are ready. A word to the wise is that a sole proprietorship, meaning that you are a “solo” is not a good idea. There should be two people and they do not have to be equal members.
If you are developing Intellectual Property
- You must protect the property with the proper authority – copyrights for art and writing and audio production, patents for designable ideas and trademarks for symbols that stand for brands.
- If you want your company to own these, you will have to title them into the company.
- You will need legal advice for selling and distribution. Don’t try to do the accounting, the taxes, the asset protection or the contracts without help from the proper authorities in these fields.
If you are a 1099 Contractor
- You will need to use a subcontractor agreement, which means you work is “work for hire” and that someone else owns the intellectual property.
Always, always sign non-disclosure agreements when dealing with Intellectual Property. This covers you from being accussed and protects your valuable contacts.