I am a sole proprietor for a small (very small!) service business. No inventory, etc. We have filed Chap 7, no asset. None of the debts are business related.

In order to keeps things clean and neat, I have stopped working and am closing down the current business, even though the trustee said it wasn't necessary in my case. I'm creating an entirely new business, new business name and expanding my services. One of the reasons for this (and the reason we're having to file to begin with) is because I was employed full-time by another company. My business was part-time, after hours... almost more of a hobby than true profitable business. I was testing the waters, if you will, to see if there was a market for my services and if I could make a go of it. The nature of the work as a contractor meant I was using an EIN for the business, even though I had no employees (nor do I intend to have any for a while yet). My full-time employment was cut in half several months ago and I'm receiving a tiny bit of unemployment it help compensate. At any rate... I want to expand my business and offer related services which will require a business name change anyway, and additional licenses.

Because of that, I've found it will be easier to just shut down the one and create a new one. It will officially shut down as soon as I collect the remaining accounts receivable that are outstanding (< $200).

Now, I will not actually be working or conducting any actual business until after the discharge. But, I'd like to start setting up the paperwork and working on my licenses so they're ready to go when I start up. Two of the licenses I will be obtaining require fingerprinting and criminal background checks that can take time. This also includes setting up new bank accounts, dba, business license, bond, etc.. the whole thing.

The thing that I'm wondering is this. It is wise to start doing this before the discharge? I have to request a new EIN... and that EIN needs to be used for a lot of the follow-up paperwork. I will not be utilizing any credit for this new business.

If I wait until the discharge to start, it will definitely delay my ability to run this business for a good month or two. And given my already reduced income it's a bit of a crunch I'm not sure I can handle. Also, I won't be signing and contracts or anything that creates a debt burden or liability before the discharge. For example, I may shop for insurance but I won't actually activate any policies until after the discharge date and just prior to the business start state.

So yeah... sorry that's so long. Any ideas for direction? Should I wait or would be be okay to start now provided I keep it to preliminary paperwork needs to start up?