posted on December 19, 2000 09:18:29 AM
Hey guys pardon me for my ignorance, but I'm thinking of starting my own little home business and was going to set up a merchant account.
By the way is Charge.com any good..that's who I applied with?
I won't be setting up anything till the first of the year.
On the application forms it says...
Legal Business Name
and then right below it it says...
DBA (Doing Business As)
According to the highlighting, both of these need to be filled out.
posted on December 19, 2000 10:02:09 AM
If I remember correctly, charge.com makes you sign a 48 month lease for $50 a month for the software to accept the CC. This is in addition to the fees and a $10 monthly statement charge. So you will be paying $60 a month on top of the fees. If this is the case, you can do much better. My account was with fleet bank. They charged me $195 one time fee, $395 one time software program which I now own, $5 monthly statement fee. In the first year I am already ahead of what I would be paying charge.com. By the second year, it's even better. Shop around.
posted on December 19, 2000 10:17:57 AM
Much of what you are being asked on that form has to do with how your business is set up. Most people in small home-type businesses are sole proprietors (as opposed to Corporations).
In the case of a sole proprietor, you are the business and you are then operating under a name. How you choose to do this is up to you. If you are making up a business name you must clear that name with the Department of State or Department of Revenue in the state which you live. This will cost a fee for the research and filing as well as expense for publishing in the legal record in your local jurisdiction.
Most states will allow you to use your name in conjunction with the type of business you are operating without filing for a ficticous business name. For instance, Jane Doe's Collectables. That identifies you and what you are selling.
In the case of the form you have, for a sole proprietor they want your name and the business name you are using.
Example:
Lagal Business Name: Jane Doe
DBA: Closet Collectables
As a sole proprietor, you are the business, Jane Doe, doing business as Closet Collectables.
Check with your state agencies for the appropriate business filing information. Many states now have excellent resources on their own web sites to answer most general questions. Keep in mind that if you are selling, your state will require you to collect sales tax (with the exceptions of the few states which do not have sales taxes). You must then file for a Business License/Reseller License/State Tax ID. If you sell to someone in your own state you will be required to collect sales tax on the sale.
posted on December 19, 2000 10:39:02 AM
Legal Name refers to "your name" if you setup your business as a sole proprietor. Or Corporate name for partnerships and corporations. (this name is submitted on your articles of incorporation or partnership and are filed with your state) Usually these are prepared by your accountant or lawyer. (an accountant will generally do it for much less, and possibly free if you use them to do your accounting and taxes. You can also buy a kit at most office supply stores to do it yourself)
The DBA (Doing Business As) refers to your trade name. (the name under which you conduct business and collect payments) This may be the same or different than your Legal Name. This needs to be filed with your state also. This process is required to ensure that the public can determine who is legally responsible for any liabilities.
The fees for both are relatively small, and can usually be completed in one trip. The most time consuming is usually finding a name that someone else is not using already. When we first setup our business, we had a list of 10 possible names. When I sent to the state office buiding to file the papers, I found that all had been taken. After an hour going through the State's computer database, I finally picked one that I liked and nobody was using. We used this name for both our Corporation (with inc. after it) and for our Trade Name. We now also have several other trade names that we have registered with our state, one for each of our websites that we accept payments from. (this is required)
Examples:
John A. Smith (legal name or sole proprietor)
DBA / John's Antiques
or:
John's Antiques Inc.
DBA / John's Antiques
As for Merchant Accounts...
Try your bank, Novus, and American Express first. All three of these may reject your application because your business is brand new, but it will give you a good idea of what the rates and fees should be.
