merchant account with llc?

[ryanpal]

hey guys. it seems this is somewhat of a hot topic these days. i'd like to know if those with online businesses could share some of their start to finish details regarding their business entities, merchant accounts etc.
from the info i've gathered thus far, this is what i came up with...please share your thoughts or correct me if i'm wrong on anything.

setup an llc
obtain a merchant account for this llc (i read this might be difficult to obtain, will it be hard to get a merchant account for a newly created llc?)
choose service that will handling online payments (cc processing)

thanks in advance!

 

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[biophase]

hey guys. it seems this is somewhat of a hot topic these days. i'd like to know if those with online businesses could share some of their start to finish details regarding their business entities, merchant accounts etc.
from the info i've gathered thus far, this is what i came up with...please share your thoughts or correct me if i'm wrong on anything.

setup an llc
obtain a merchant account for this llc (i read this might be difficult to obtain, will it be hard to get a merchant account for a newly created llc?)
choose service that will handling online payments (cc processing)

thanks in advance!

What you really need instead of an LLC is a business license. Then with the license you can open up a business checking account or merchant account. Of course, will an LLC, the bank will probably assume you have a license and are running a business and open up a biz account for you also.

A merchant account to me is just a business checking account that will be tied to a credit card processor. There are a few things all the CC processors ask for.

1) phone number of business and address clearly available on the site
2) return/refund policy in writing
3) private policy information

Many large chain banks should have a one stop shop for something like this.

 

[ryanpal]

What you really need instead of an LLC is a business license. Then with the license you can open up a business checking account or merchant account. Of course, will an LLC, the bank will probably assume you have a license and are running a business and open up a biz account for you also.

A merchant account to me is just a business checking account that will be tied to a credit card processor. There are a few things all the CC processors ask for.

1) phone number of business and address clearly available on the site
2) return/refund policy in writing
3) private policy information

Many large chain banks should have a one stop shop for something like this.

thanks for the reply kenric. quick followup questions.

you mentioned a business license... this is the first time i'm reading about this. would you mind elaborating?

in regards to "1". is a phone number necessary? how about sites like amazon or paypal which having no numbers listed

 

[biophase]

thanks for the reply kenric. quick followup questions.

you mentioned a business license... this is the first time i'm reading about this. would you mind elaborating?

in regards to "1". is a phone number necessary? how about sites like amazon or paypal which having no numbers listed

Maybe its in my line of business (retail), but I have to get a city license and state license to sell my stuff. Technically, people who rent out homes are suppose to get a business license also.

Yes, a phone number is necessary. Just put your cell on there. P.S. some credit card processors don't allow cell phone numbers either.

 

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[ryanpal]

maybe what i should have asked is. how can i get around putting my phone number on there? if truly necessary i believe i can put a 1800 forwarded to a recording. however, most of my inquiries would most likely be via email.

i'd rather avoid the number all together. any work arounds?

 

[PEERless]

An 800-number REALLY adds credibility. RingCentral will forward 800-calls to your cell for about $100/year.

 

[yveskleinsky]

Hi Ryan!

Glad to see you are going full speed ahead with your idea. Since you will be selling a product that may require tech support/customer service I would have an 800 number. We were also trying to get around having a phone number listed as we were going for site that was more automated- but that's not happening. The good news is that I think most people who are finding and using your product will be able to answer the questions themselves, just include a good FAQ section. You may also want to strongly consider a patent for your idea as well as a copyright and trademark.

Go Ryan Go! :fastlane:

 

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[biophase]

maybe what i should have asked is. how can i get around putting my phone number on there? if truly necessary i believe i can put a 1800 forwarded to a recording. however, most of my inquiries would most likely be via email.

i'd rather avoid the number all together. any work arounds?

I would go get a phone number, I use the cheapest Vonage package + 800 number for $25/mo. Set up a voicemail box. You don't have to answer any of the calls. Just listen to the voicemails and return the calls if you want.

 

[ryanpal]

Hi Ryan!

Glad to see you are going full speed ahead with your idea. Since you will be selling a product that may require tech support/customer service I would have an 800 number. We were also trying to get around having a phone number listed as we were going for site that was more automated- but that's not happening. The good news is that I think most people who are finding and using your product will be able to answer the questions themselves, just include a good FAQ section. You may also want to strongly consider a patent for your idea as well as a copyright and trademark.

Go Ryan Go! :fastlane:

thanks for the feedback:smxA:

do you have a business license as biophase suggests? i'm going to try and get the llc stuff together today and the cc stuff right after.

Edit: you provided some food for thought. i created another post: http://www.thefastlanetomillions.com/showthread.php?p=42786#post42786 regarding copyrights etc. one thing i do recall reading is that you can't patent ideas. let's see what members have to share...

 

[PEERless]

I would go get a phone number, I use the cheapest Vonage package + 800 number for $25/mo.

RingCentral does the same thing for $9.99/mo.

 

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[rsant]

business licenses don't apply in every state. Here in NY, those are non-existant.

-set up your llc
-get ur tax id's and resale numbers
-set up your business bank account . when you go for the first time .. bring your articles of incorporation and all those necessary papers to open an account.

-ask your bank which merchant account they deal with. My bank is commerce bank and they deal with heartland payment systems. which deal directly with authorize.net. Heartland is a huge company and is the same merchant to stores such as bloomies and macy's purchase transactions.

Try to have your site finished up before you fill out merchant applications so everything flows.

to sum it up..

1. you don't need a business license to set up a merchant but you do need to be formed.
2. you NEED to set up a business bank account for the bigger merchants.

try to do everything right the first time, don't skimp out on these things if you want to take your biz seriously.

What you really need instead of an LLC is a business license. Then with the license you can open up a business checking account or merchant account. Of course, will an LLC, the bank will probably assume you have a license and are running a business and open up a biz account for you also.

A merchant account to me is just a business checking account that will be tied to a credit card processor. There are a few things all the CC processors ask for.

1) phone number of business and address clearly available on the site
2) return/refund policy in writing
3) private policy information

Many large chain banks should have a one stop shop for something like this.

 

[biophase]

RingCentral does the same thing for $9.99/mo.

Ringcentral is a virtual phone number that forwards to one of your existing phones. I don't believe that this is a good choice for your only business line.

If someone calls you and it goes to your cell phone, how do you know if its a call to your business or for you personally? Are you going to answer the call, "hello" or "ABC company?" Also, when it goes to voice mail is your message going to say, "Hi this is biophase" or "Hello, you've reached ABC company"

 

[LightHouse]

Ringcentral is a virtual phone number that forwards to one of your existing phones. I don't believe that this is a good choice for your only business line.

If someone calls you and it goes to your cell phone, how do you know if its a call to your business or for you personally? Are you going to answer the call, "hello" or "ABC company?" Also, when it goes to voice mail is your message going to say, "Hi this is biophase" or "Hello, you've reached ABC company"

Thats not true for all companies. I use gotvmail.com (from a suggestion on here) and it forward to my cell. It comes up as the comapny and it asks if i want to accept or send it to virtual voicemail which all has my business Vm set up and then lets me know there is a VM there Via email. when you call in it sounds li9ke you are calling a phone system and you have to press 0 for it to get a "representitive".

 

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[PEERless]

If someone calls you and it goes to your cell phone, how do you know if its a call to your business or for you personally? Are you going to answer the call, "hello" or "ABC company?"

LightHouse gets it...

Thats not true for all companies. I use gotvmail.com (from a suggestion on here) and it forward to my cell. It comes up as the comapny and it asks if i want to accept or send it to virtual voicemail which all has my business Vm set up and then lets me know there is a VM there Via email. when you call in it sounds li9ke you are calling a phone system and you have to press 0 for it to get a "representitive".

Yep. I can set up different "lines." For a representative, it comes to my cell. For now, all else goes to company VM. If I get big, w/lots of call volume, I'd be able to forward those calls to an answering service. But the virtual PBX is working well during startup.

I even paid $30 extra for a vanity number. WAY easy to remember with my company name and everything!

 

[ryanpal]

business licenses don't apply in every state. Here in NY, those are non-existant.

-set up your llc
-get ur tax id's and resale numbers
-set up your business bank account . when you go for the first time .. bring your articles of incorporation and all those necessary papers to open an account.

-ask your bank which merchant account they deal with. My bank is commerce bank and they deal with heartland payment systems. which deal directly with authorize.net. Heartland is a huge company and is the same merchant to stores such as bloomies and macy's purchase transactions.

Try to have your site finished up before you fill out merchant applications so everything flows.

to sum it up..

1. you don't need a business license to set up a merchant but you do need to be formed.
2. you NEED to set up a business bank account for the bigger merchants.

try to do everything right the first time, don't skimp out on these things if you want to take your biz seriously.

great response. one problem i see here. what if i am advertising on my site to join now and i do not have the ability to process credit cards yet?

this seems like it could pose a problem. i'd rather have it in place before i do the next big release for my site.

 

[biophase]

You can use paypal for now.

 

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[Hoop]

Once you form your entity and it is registered with your Secretary of State (or equivalent), you will get more mail about business credit cards and merchant accounts than you will know what to do with.

Also, if you banker is any good at sales, he/she will not let you leave the bank without suggesting their merchant services.

CS

 

[ryanpal]

so if i chose to go through authorize.net...i will still be using a bank that i'm a member of? i'm a little confused as to how the system works here.

 

[LightHouse]

Dude, stop thinking and take action. Call authorize and they will tell you what you need and how to get it done. You will need to send your papers in as well as have a business bank account open. Authorize does the program end and a bank associated with them (i used wells fargo) will process the money and it forwards to your biz bank account.(mines with chevy chase) . its simple, you just need to call them and get it worked out. this thread should have your update of everything completed in it already!


Sorry if this came off harsh but if you are going to run a business you are getting way to caught up on first week stuff. you should be selling right now not worrying about how to accept credit cards.

If you are not doing web based sales, buy quickbooks pro for $120-160 (whatever it is) then get quickbooks merchant services or go through your bank to do it.

 

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[ryanpal]

i have no problem taking action. i just like to look before i leap. poor planning can cost you money down the road.

i just wanted to get an understanding of the process. it seemed that there were some conflicting suggestions and i was unclear as to what was the first step.

 

[AroundTheWorld]

Set Up LLC
Get Biz License if necessary
Open Biz Checking Account
Apply for Merchant Service Account
Accept Paypal in the mean time

The Merchant Service Company will ask for your business checking account information. They will want either a voided check - or if you have only counter checks - a letter from your bank and/or some other confirmation.

Also - Make sure that the phone number you get is listed in 411 (under your business name). Even if you are using a cell number, you can do a "foreign" listing with your local book - and get the number listed as if it were a "real" number. The fee is about $10 a year to get it done that way.

 

[ryanpal]

thanks sonya ;]

 

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[Yankees338]

(Just for reference: I'm building an eCommerce site selling products in a particular industry.)

In order to acquire a business license, do you go through the Chamber of Commerce or a specific department of the town gov't?

I called the CoC today, and the woman I spoke with said I just needed an LLC to operate a website. Can anybody clarify this for me please?

Thanks in advance.

 

[CactusWren]

The biz license is a govt thing. Call your local city, county or state govt. Here in AZ you need an AZ license and a city or county license too. Usually the same that you will be charging sales tax for local sales.

Your local SBA office is a great source for this info and all first steps. Good luck!