Disclaimer: The information below is provided as a general guide to help in your entity formation and not as legal or tax advice.
As an independent Associate, you will form your own legal entity and have a “Corp to Corp” business relationship with Empower Associates, legally becoming a vendor of Empower Associates. Below are the basic steps to take to form your own legal entity.
Below are the steps to form a corporation or LLC, which are similar for all 50 states. Depending on your personal tax situation, if you form an LLC, it is likely your CPA will recommend that you classify your LLC as an S-Corp. This S-Corp designation is simply a way you want the IRS to tax your LLC, and you don’t need to do anything for that until you file your taxes each year. You will need to fill out and mail in IRS form 2553.
Again, consult with your CPA. For the purposes of joining Empower Associates as an Associate vendor, you will only need to form the company and obtain a federal EIN.
- Search for an Available Business Name in Your State: Every state has their own “corporation commission” where you can search and register business entities. See full list by state below, complete with hotlinks. Oftentimes, state sites will tell you to check the name first using some form of a “name availability” page. Many states opt to not do this, because it takes longer and their Business Search site provides accurate enough information. See a complete list by state below.
- Fill Out & Sign All State Forms: Every state will require you to fill out and sign various forms, including your Articles of Organization. If you are forming a partnership, they will likely require a partnership operating agreement as well.
- Obtain Federal EIN: It takes 5 minutes to obtain an EIN from the IRS website. IRS.gov site: “How to Apply for an EIN“.
- Register with Franchise Tax Board: This is not required in every state. You will not be paying franchise taxes in any state as an Associate/Vendor of Empower Associates, but many states, like California, require you register either way.
- Register for Business Tax Permit: Similarly, some states require you register to pay city taxes when selling goods in their city. Even though you are not selling goods and paying sales taxes, some states require you to at least register.
REGISTRATION BY STATE
Below are all 50 states’ business entity search & corporate record search pages, as well as the District of Columbia and Puerto Rico: