Purpose: This assignment will reinforce the financial accounting concepts and terms that you have learned so far and allow you to put them into practice. Accounting is a discipline that can help you succeed in business, whether it is a business you own, manage, or wish to learn about for investing purposes. This assignment will help you learn about various websites available to potential business owners such as the IRS and Texas Comptrollers websites with valuable resources to help start a business and information regarding the legal requirements of business owners. Whether you want to own your own business, move into upper management with a company, or just improve a business you currently own, this project will help you get acquainted with many aspects of the accounting and profitability side of business. Task: Determine the steps needed to start a business and the related start-up costs. You will research various websites such as comptroller.texas.gov and IRS.gov to determine the steps that are needed to start a business in Texas.

1. Explain what an EIN (employee identification number) is and whether or not your company must have one.

2. List where you would go to get an EIN number if your company needs one how do you apply for this? How much does the IRS charge business to obtain an EIN number?

3. List how much capital you anticipate needing for the first year of your business. See the SBA website given above in your resources for a list of common startup costs to help you. List each item with an amount next to it. For example, if Im going to open a gym I would list the workout equipment with an amount, rent for my location for the first year with an amount, supplies with an amount, computers, advertising, etc). You may want to do this on an Excel spreadsheet and cut and paste here in the Word document.

4. List how you intend to obtain the capital for the first year of business (e.g., selling stock, borrowing from a bank, etc). Give details such as how much stock you would need to sell, or the interest rate and related interest expense for the first year of borrowing, etc. (In the real world, it is much more likely that you will be borrowing money to finance a new small business rather than issuing stock.)