The BLM permit is a bit more difficult. At my last company I was on their permit as a Principal Investigator for both prehistoric and historic resources statewide. So, naturally, I thought it would be easy getting my own permit from the BLM. Not so much. I filled out the application and submitted it with my CV, my NSM permit, a curation agreement for artifacts (also from the NSM) and a supplemental page detailing the type of company I have, or plan to have.
Since I’ve never held my own CRUP before the BLM wants to see some sort of proof that I’m serious about having a real company and that I’m not some quack with a degree trying to mess up arch sites in the Basin (I will delete any comments relating to this statement. You were warned.). So, I’m about to give them all the things I’m going to talk about next. Then, they’ll sign off on the permit.
To Incorporate or Not to Incorporate
That’s not the only question. There are a few
ways you can go when forming a company. There is a
sole proprietorship, a
partnership, a
Limited Liability Company, a
C-Corporation and an
S-Corporation.
Since I’m not a lawyer I’m not going to tell you which one to choose.
What I will tell is to do your homework and check out each option. They all
provide a level of protection should you get sued or cause a bunch of damage
to a client’s site. Attend a SCORE
class. They are free and can be found nation
wide. I chose to go with an LLC because it provides me the level of protection
that a small company like mine needs.
You can, and should, have a lawyer set up the
paperwork for whatever type of company you choose. Since I’m setting this up
as frugally as possible I did my own research. Here in Nevada there is a state
website for setting up companies and obtaining business licenses. It’s called
Silver Flume
(I know, right?) and it’s real easy to use. I was able to set
up the LLC, apply for a State Business License, and get an
Employer Identification Number (EIN) all in about 30 minutes. The cost to set
up the LLC was a total of $200. It was $75 to Charter the LLC and $125 to
submit the list of officers (which has to be done within 30 days and since
I’m the President, Owner, Principal Investigator, Report Writer, Project
Archaeologist, Field Technician, and Janitor it was easy).
If you are worried that your LLC (or whatever
you chose) isn’t set up right because you did it yourself, don’t worry.
You can always have a lawyer look over the paperwork and make any changes
later when you have more money. As soon as I have a few contracts behind me
and some money in the bank I plan to have a lawyer look over all of my documents.
Business Licenses
Notice the plural: business licenses. Here in
Nevada you have to start with the State Business License. The application is
easy and can be done on the Silver Flume website. The cost was $200.
After the state license, you also need a city
license and county license for wherever your business is located. The costs
vary, depending on where you are. Here, it’s another $200 total for my current
city and county. An additional challenge for a statewide consulting firm is
the need for business licenses in other cities and counties. If I land a contract
in, say, Elko County, I’ll need to contact the county and get a business
license quickly. The turnaround is fast and the BL should be less than $200.
The good thing is that most BLs are good for at least one year.
Employer Identification Number
This is the easy one. You can get an
EIN from the
IRS quickly and for free on their website. You need the EIN to pay taxes and
to pay employees. If you don’t know what an EIN is, it’s the number on the
W-2 you get from an employer that you have to put down in the tax software that
you use. I got mine on the Silver Flume website while I was doing the business
license and the LLC Charter.
That’s enough for this post. Check back in a
future post for the remaining steps in the process, including writing a Business
Plan, setting up insurance, and doing all those little things that you take
for granted at other, established, companies.
Thanks for reading and I'll see you in the field!