Many entrepreneurs, whether it be on the Net or off, in their haste to get started, fail to sit down and think of the future and/or some of the problems they may encounter. One area, which is one that I have gotten many questions about over the years, is the question of whether they should use just their own name or a business name. Either one is okay, but you have to think of several things first.

A number of years ago I started publishing a tabloid newspaper called "The Clipboard". At the time, for business purposes I used the name J.F. Reinbold, which of course is my name. I used a personal checking account, which was cheaper. But as my business started expanding, I started to receive increased advertising orders and some of the checks were coming in made out to the "Clipboard" which was the name of the newspaper. This was occurring even though I clearly stated on the order form to make payments out to J.F. Reinbold. And guess what, my bank wouldn't cash them because "The Clipboard" was a separate entity and it wasn't listed on my account. And because it was a business, I would have to open a business account in order to cash the checks. In addition I would have to present a DBA(Doing Business As) certificate to the bank from the county showing I was doing business as "The Clipboard". So for a while I was returning checks and asking for new ones.

You might want to check out your local banking policies before you use some unique business name and start getting checks made out to that name. Also check out your local requirements for getting a DBA certificate. It might be called by a different name around the country. Getting one here was pretty simple. We just went to the county offices, filled out the application, checked the county files to make sure that the names weren't in use and then paid $60 for them to process the certificate.

Then it was on to the bank to open up a business checking account. You need to shop around for those too. The fees were different at all the banks I went to and some of them really penny and dime you to death. So make sure you shop around. And each of them required a copy of the DBA certificate.

Once you register your business name with the county, it becomes a matter of public record. In our area there are a couple of newspapers that list new businesses in a news column each week. They list the name of the company, the owner and the address. This can generate questions from neighbors, so be aware of what can happen. You might also want to check whether you might need a Sales Tax Certificate if your State has a sales tax. Tax people read the newspaper too.

If you are going to apply for a merchant account so that you can accept credit cards online or offline, they may require some business documentation too. Most may want to see a DBA certificate, business license and/or sales tax certificate to show you are a valid business.

So what's my point? This! Before you launch your new business, draw up a little plan covering the things you need to check out. Don't just think up a name, get the web site up and running and then find you have some problems. Check out some of the basics I mentioned above. If you are serious about the business and not doing it as just a hobby, do it right in the beginning. I would hate to see you get a very successful business off the ground and have some serious problems with some of the Federal, State and/or local authorities or your banking people. Believe me, I know it's a pain, but doing a little homework will payoff in the long run

Joe Reinbold, webmaster of The Entrepreneur's Home Business Link, publishes a free weekly email newsletter "Home Income Quarterly E-dition" which is dedicated to assisting online marketers.
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