Collecting payments without first registering your biz name

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Is it possible to collect payments for services rendered before you register your business, dba, win etc?
#biz #collecting #payments #registering
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  • Profile picture of the author OptedIn
    Originally Posted by uberpreneur View Post

    Is it possible to collect payments for services rendered before you register your business, dba, win etc?
    If you are going to have checks as a form of payment, your bank will want a fictitious name registration or business license from your local municipality in order to open a business account and won't allow you to deposit business checks unless they are made out to you, personally.. So, collecting payments is not the problem, it's what do you do with the payment after you collect it?

    My PayPal account is a business account. I can't remember if I was forced to do that or if I did it to have access to more services.
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    • Profile picture of the author uberpreneur
      Thanks for the reply. I thought about using PayPal but I wanted something that gave a more "professional" look and feel.

      Stripe is another option I'll look into. But I'll probably just do the whole dba process.
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      • Profile picture of the author OptedIn
        Originally Posted by uberpreneur View Post

        Thanks for the reply. I thought about using PayPal but I wanted something that gave a more "professional" look and feel.

        Stripe is another option I'll look into. But I'll probably just do the whole dba process.
        Long-term, that is a very prudent decision. If you're going to do something, do it correctly. Living in the moment is great, but preparing for future eventualities shows good judgement.
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      • Profile picture of the author agmccall
        Originally Posted by uberpreneur View Post

        Thanks for the reply. I thought about using PayPal but I wanted something that gave a more "professional" look and feel.

        Stripe is another option I'll look into. But I'll probably just do the whole dba process.
        What is not "Professional" about paypal. they are accepted by some/most of the major retailers out there. As I have also mentioned numerous times here, paypal has a gateway and merchant account you can get. It is the same as any other merchant account. The benefit is you can accept american express and discover without having separate accounts.

        al
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  • Profile picture of the author tagiscom
    Originally Posted by uberpreneur View Post

    Is it possible to collect payments for services rendered before you register your business, dba, win etc?

    Sure, l did a business course recently and your name is enough, and PayPal, etc.

    But if you want to take your business to the next level, (board of directors, etc) then it will need to be registered.

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  • Profile picture of the author yukon
    I think a personal Paypal has a max limit of $500 so If the service is under $500 should be ok to get started. You'll still need a long term plan.

    Why is this thread in the OT?
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    • Profile picture of the author uberpreneur
      The service and software is $500 per month, with a $99 set up fee.

      I wasn't sure where to put this under.
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      • Profile picture of the author yukon
        Originally Posted by uberpreneur View Post

        The service and software is $500 per month, with a $99 set up fee.

        I wasn't sure where to put this under.


        Ok, I doubt you can get by with any personal account, not even for a single sale.

        Maybe contact a local SCORE office and they'll probably be able to hook you up with someone that can help with the LLC, etc...
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  • Profile picture of the author MikeFriedman
    Originally Posted by uberpreneur View Post

    Is it possible to collect payments for services rendered before you register your business, dba, win etc?
    As a former banker, yes you can collect payments before you register a business entity or DBA, but you cannot collect payments in the name of that business. Only your personal name.

    No bank would let you deposit a check in a business name into any account other than one that is titled in that business name.

    The problem with that is I think you lose some credibility in the eyes of the business. They are going to wonder if you are a legitimate business owner, and if so why would you not have a business entity setup.

    Registering a DBA is free and takes very little time. Then you can set up a bank account, which also shouldn't take much time. In the U.S., you can do this online and print off the documents the same day.

    In the U.S., you can set up an LLC through something like LegalZoom for about $300. The price will vary from state to state. You would have the necessary documents to set up your bank account in about 2 weeks.

    Or you can go to a local lawyer. Most of them will charge anywhere from $500 to over $1000 to set up an LLC for you.

    You can set up an LLC yourself also, but unless you are familiar with the process, I wouldn't recommend it.

    Same goes for setting up a corporation, but you need to double or triple the fees and understand the difference between an S-Corp and C-Corp.
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    • Profile picture of the author uberpreneur
      Thanks for the thoughtful reply. My target market are local businesses. I am a little reluctant to do this with my real name because I don't want to lose any credibility.

      I'm in Arizona. It's relatively cheap to set up a dba and LLC here.

      Thanks again.
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  • Profile picture of the author DWolfe
    Do not forget to get a federal tax identification number. Should get that first just go to the IRS. - https://www.irs.gov/individuals/inte...on-numbers-tin
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    • Profile picture of the author uberpreneur
      Thanks Dwolfe! I've had an ein number for a while now.
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  • Profile picture of the author amuro
    I think for moral values and providing trust to your prospects / customers, it will be best to register your business first.

    Before providing any service.

    Let alone payments.
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  • Profile picture of the author JohnMcCabe
    Originally Posted by yukon View Post

    Ok, I doubt you can get by with any personal account, not even for a single sale.

    Maybe contact a local SCORE office and they'll probably be able to hook you up with someone that can help with the LLC, etc...
    I second this advice. SCORE is a terrific resource that is sadly underutilized. They'll hook you up with someone who can help you figure out which business entity you need, along with how to get it set up properly.

    Oh, and SCORE is free -- paid for by your tax dollars.
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    • Profile picture of the author squeebo
      Originally Posted by JohnMcCabe View Post

      I second this advice. SCORE is a terrific resource that is sadly underutilized. They'll hook you up with someone who can help you figure out which business entity you need, along with how to get it set up properly.

      Oh, and SCORE is free -- paid for by your tax dollars.
      Does the agency pay the mentors? I see a bunch of mentors' profiles online and have a hard time imagining how these successful people would give up their time. SCORE can't be paying that much, can they?
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  • Profile picture of the author gjfukit
    Also check out square at https://squareup.com/


    Can't remember what all the differences are between them and Paypal but I know a big one is the ability to take a client's credit card # and process it on your end whereas I believe with Paypal, you have to send them the invoice to pay and/or have it all set up on your website.


    Also, just found out today that Square has their own CRM and/or integrates with Zapier to Hubspot CRM so for clients who are old school and have NO existing CRM, I think this is a good system for them to start collecting client data from taking payments which shouldn't impact their existing workflow too much other than now they can ask for an email but helps us as marketers since we can now use that data for retargeting and lookalike audiences. Just today, I had a guy show me two cabinets full of files where he never inputted the info into any computer, so while this might be a hassle, for someone like me, this is an easy sell since I'm not only selling them marketing services, I'm selling them organization.
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  • Profile picture of the author celente
    i teach people this, use someone else funnel and their site, but collect names.

    I did this when I was broke and had $100 dollar days, these days i am having $500 dollar days, cause i just ramped it all up.

    But base this around email marketing you do not even need a domain name, just use the AR sites.
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  • Profile picture of the author wahoowad
    Absolutely. Sole proprietor
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  • Profile picture of the author JohnMcCabe
    Originally Posted by gjfukit View Post

    Can't remember what all the differences are between them and Paypal but I know a big one is the ability to take a client's credit card # and process it on your end whereas I believe with Paypal, you have to send them the invoice to pay and/or have it all set up on your website.
    If you have a business account, you can get the PP dongle that plugs into a cell phone or tablet. This enables you to swipe a credit card onsite.
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  • Profile picture of the author DollarFunnelClub
    Don't worry about biz names when you first start.

    Worry about collecting money and doing good work. Once you start to grow you can create the biz name and steamline it to your work.
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    • Profile picture of the author OptedIn
      Originally Posted by DollarFunnelClub View Post

      Don't worry about biz names when you first start.
      Any person serious about running a legitimate, legal business will do their due diligence and get a business license or at least a fictitious name registration.

      Obviously, to some people, it's just a money grab.
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      "He not busy being born, is busy dying." - Bob Dylan • "I vibe with the light-dark point. Heavy." - Words that Bob Dylan wishes he had written.

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  • Profile picture of the author ChrisBa
    Originally Posted by uberpreneur View Post

    Is it possible to collect payments for services rendered before you register your business, dba, win etc?
    Yes, you can collect money as an individual as well.
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