Entity Formation - Overview
You have just finished Domino’s Franchise Management School and are ready to form a business as a new Domino’s franchisee, where do you begin? A functional entity with its own Federal Employer Identification Number (FEIN) can open a bank account, obtain a loan, purchase property (store), receive payments, pay bills, and employ individuals. Navigating internet websites can be confusing for first time and even advanced business owners. Although certain procedures vary by state, we at D & S Management Services Inc have compiled the following 6 steps to help you properly create the foundation for your Domino’s franchise business. We recommend reaching out to D & S Management Services Inc to help you through the process.
Pick an entity classification.
The first step is to pick a proper entity classification. A proper entity selection determines how your business will be taxed for federal purposes and can provide valuable liability protection to the owner(s). Available business entity classifications we recommend are as follows:
Select an entity name.
Your entity name can be anything you choose, with the proper identification at the end of the name, as long as the name is not actively being used by another state entity.
File the proper forms with the state you intend to do business within.
We recommend a new business to file the forms to create an entity with the state your business will operate in as soon as you decide to pursue your idea. In addition, we recommend concurrently filing a Doing Business As (DBA) “Domino’s”.
Apply for a Federal Employer Identification Number (FEIN) with the IRS.
This step is critical and has proven to be tricky when done without the guidance of an accounting professional.
Open a business bank account with the bank of your choice
In order to open a bank account, a bank will require acceptance from the Secretary of State you filed your entity in and your business’s FEIN (IRS SS-4).
Begin accounting for your business
There are many accounting products and companies available, varying in their price and capabilities. It is important to choose an accounting provider that can meet your current and potential future needs. Having to switch accounting providers down the road, due to a lack of crucial features, will lead to higher expenses and headaches. D & S Management Services Inc, owned by a current Domino’s franchisee, has designed their accounting system specifically to meet Domino’s franchisee’s needs.
We recommend reaching out to a qualified accounting service as soon as possible (before step 1) to aid in the selection, creation, and accounting of your business. Running a Domino's franchise is no easy task, as a team with industry specific knowledge we at D & S Management Services Inc know this first-hand. You have a lot on your peel, let us help you with all your accounting needs.