Start business until the LLC company is ready?

3 replies
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I'll be dealing with private label products. I'm currently at a stage where I have an LLC formed but still need to receive an EIN number and a busienss bank account.
The supplier is already waiting to start busienss.
Can I start with the first order with my personal account until everything is ready? Would it be wise?

Thanks in advance
#business #company #llc #ready #start
  • Profile picture of the author dave_hermansen
    The supplier generally does not care about which bank account is paying them, as long as they are paid. Really, all they need is a credit card number. The real sticking point is a sales tax certificate which all U.S. suppliers that I know of require.

    Are you located in the USA? If not, how in the world are you getting a U.S. bank account? The Patriot Act should have made that next to impossible!

    If you ARE in the USA, the LLC and EIN aren't even absolutely necessary. Most suppliers will set up sole proprietors with just social security numbers, provided they have a sales tax certificate. One of our students, who has been extremely successful and launched many dropship websites with suppliers, has always been a sole proprietor with no LLC or EIN for more than a decade.
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  • Profile picture of the author Manifestazn
    If your a U.S. Citizen and in the U.S. you can obtain a Tax ID in minutes if in good standing with your tax filings. To open a business bank account is quick and easy should not take no more than 15-45 min to get done as long as there are not more than 2 people ahead of you and are assigned a well seasoned bank rep.

    For an LLC, you'll need to have your Articles of Organization, Tax ID Cert., Operating Agreement if you have a partner, 2 Forms of Gov ID & $100.00 Depending on what bank institution you go to. The LLC also has to be in good standing. There are a lot more perks of having all your income flow through your LLC versus a sole proprietor. Tax Advantages, Leveraging Corporate Credit, Etc. Depending on your level of being an Entrepreneur. In my opinion as a business, everything is an expense. As an individual, you can only expense so much. I'm not a State Bar License Attorney, CPA or Tax Advisor but please consult with your own licensed professional.

    If you are Private Labeling and importing from China especially via Alibaba, Dave is right they don't care if your a business or not as long as they get paid. But if your dealing with manufactures in the US States then your going to have to get your paper right. Product Liability Insurance, etc. depending on your exit strategy.
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  • Profile picture of the author Kay King
    No, in my opinion, it would be wise. You are not in the US so getting the legalities 'right' is critical to you.

    The supplier can wait till your business is operational. That wold be the best way in my opinion...wait till everything is legally 'ready to go'.

    Is your LLC and all the rest being set up by an attorney? Getting a US bank acct is not simple but can be done. I may be wrong but I seem to recall you are not a US citizen and are not a resident of the US. The process for you may take a bit longer - even with good legal representation.
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