Starting a Business While on Active Duty in 2021

Starting a business while serving on active duty is a goal for many active-duty entrepreneurs, just like myself. For some, the very thought of doing so can be overwhelming and confusing. However, I’m here to tell you that starting a business may be much easier than you think.

With the right information and tools, you can take your passion and create a business, even while being on active duty! Make sure to read until the end. In this article, I will break down exactly how you can create your own business in 2021.

Active Duty Entrepreneur

The first step in starting your business while on active duty

Get started by visiting your state’s Secretary of State website to learn more about specific filing requirements where you live.

Here are quick links to the business filing websites and phone numbers for the Secretary of State offices for all US states and territories:

Once you have successfully filed the appropriate documents for your business, you will receive the articles of organization. This document makes your LLC an official business entity with the state. The articles of organization typically include the name of the LLC, the registered agent, whether the LLC is managed by members or managers, and the effective date.

What type of entity should I form?

Active Duty Entrepreneur

Many new businesses consider creating a limited liability company (LLC). This is because an LLC is a simple and adaptable business structure and is perfect for many small businesses. While a corporation and LLC offer their owners limited personal liability, owners of an LLC can also take advantage of tax benefits, minimal recordkeeping, and reporting requirements.

Keep in mind, the Secretary of State cannot help with identifying the best entity type for your specific business requirements. However, they are able to provide general information about types of business organizations. For personalized assistance, you should consult with an attorney.

The next step in starting a business while on active duty is applying for an EIN

Active Duty Entrepreneur

What is an EIN? An Employee Identification Number. An EIN is a unique nine-digit number that identifies your business for tax purposes. As a business owner, you’ll need an EIN to open a business bank account, apply for business licenses and file your tax returns.

Is it free to apply for an EIN? Yes, this is a free service offered by the IRS and you can receive your EIN immediately.

Now that you have filed the necessary documents with the state and applied for your EIN, you have successfully created a business!

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