The first step of starting a business is going through the registration process. It’s not easy, it requires a lot of paperwork, research, and tax preparation. Some businesses can be partly registered online which makes it a little less hectic. The following are great tips that will help you when registering your business.
Choose a Business Structure
The business structure you choose affects the way to file for taxes and also your daily operations. It is important to choose a perfect business structure. The laws and registration for all business structures vary state by state. The various business structures are; a sole proprietorship, limited liability company (LLC), corporation, or a nonprofit.
The steps for each type of registration are similar but the documents required are different. For a big business, a C-Corp structure is good as it offers the most protection for the owner’s assets. The dividend is shared among shareholders.
Identify your Company Name
You should have a name that will define your business. There are so many complications getting a name for a private firm. The legal name should be the owner’s full name if you are a sole trader. For a partnership, the legal name is the last name of the partners or the given name in your partnership confirmation. The company’s legal name for a limited liability corporation (LLC) should be the one provided by the government.
You have to determine that your business name has not been taken by anyone else to avoid facing legal ramifications. Hire a lawyer to help you find out if your business logo doesn’t violate a copyright. Go ahead and trademark your business name to protect the name from being reused elsewhere. If you want your business name to be something else apart from your full name you may need to file a DBA ( doing business as).
Get Licenses and Permits
Paperwork is the most hectic part of registering a business. A license or q permit necessity will depend on the type of business. Each industry has different requirements, for example, the medical and hospitality sectors will require more approvals.
In the US the small business administration has created an easy way to search for permits and licenses and all you need is to enter your location and type of business. You can do a license finder search online to know the documents required. It may take a while to acquire a license but as long as you submit your paperwork in order, once you get your license you can focus on your business fully.
Register with Federal, State or Local Agencies
Most businesses don’t need to register with the federal government to become incorporated. Businesses work with their state or local agencies apart from applying for a federal tax identification number.
If you plan to payroll you may need to register with your state agency to file payroll taxes. When registering with Internal Revenue Service (IRS) requires the business owner to obtain an international employer identification number. A corporation requires the Article of Incorporation and a partnership requires a Partnership Agreement.