Forming a business is exciting, challenging and sometimes frustrating. It is an early hurdle for a hotel owner because it is the moment when a dream bumps into reality. At that moment, you wonder if you really want to become an owner and the scope of the project can suddenly seem daunting. However, forming a business is straightforward. Once you have it in place there is something tangible that says, “this will happen.”
In the process of forming a business, you will name your new company and purchase a URL for that name so you can set up your company email. You will choose a business structure for your new company and you will create that business as a legal entity in your state. As part of that process, you will work with an attorney on the operating agreement or bylaws that define your relationship with your new company and its other participants. Then you will apply for a TIN (Tax Identification Number) with the IRS and you will be in business.
It’s a step-by-step clearly defined process. While there is a learning curve and a bit of bureaucracy to navigate, it is very straight forward. Because most state and local governments want to encourage business formation, in most places, you can readily follow these steps through well-organized online portals.