Are you planning to start a business soon? It’s a fulfilling experience. However, opening a company brings forth different challenges, such as business registration you must overcome as a budding entrepreneur.
To begin doing business on the right footing, make sure that you register your company with the authorities first. Why take this step? It’s necessary so that you can legally begin operations, avoid paying hefty fines concerning non-compliance, and so on.
Do you want to know more about registering your company successfully? Below is a guide to help you out. Read on.
Table of Contents
Choose A Business Structure
When dealing with business registration, you need to pick your ideal company’s structure.
A business structure refers to an organization’s legal structure, management, and operation criteria. Most, if not all, states require you to categorize your business formally. Doing so guides you in properly dealing with tax payments, dispute resolution, profit and loss sharing, and other matters.
Choose the business structure that’s ideal for your business, its operations, and its interests. Common business structures include partnerships, sole proprietorships, Limited Liability Companies (LLCs), and corporations.
Different business structures have varying features ranging from the number of business partners allowed to the owners’ liability level. Choose an LLC business structure if you don’t want to be liable for business liabilities.
It’s important to note that states have different business registration processes. How to open an LLC in California might differ from how to open the same in Texas. Do your due diligence beforehand.
Choose A Business Name
A business name is an official name you’ll register with the authorities. It’ll be the title your company will be known by and will be recorded into official legal documents. Also, your company’s name will be your organization’s official identity, and the public will know too.
Hence, choosing a business name shouldn’t be taken lightly. Ensure it’s unique, simple, and memorable.
Regarding uniqueness, some jurisdictions don’t allow two businesses to have the same name upon registration. If registering your business in America, check the United States (U.S.) Patent and Trademark Office (USPTO) database first so that you won’t register a business name that’s already been filed.
Lastly, some states have certain guidelines surrounding a company’s business name. Do your research and make sure to follow such rules.
Register Your Business
After confirming that your business name is available for use and choosing your business structure, proceed to register your business.
Depending on your chosen structure, there are documents you must provide. For an LLC, you must file articles of organization; meanwhile, a certificate of incorporation is necessary for a corporation. It’d help to research information about what documents you must file depending on your preferred business structure.
Then, you’ll have to register your business depending on the state where it’ll run its operations. Reach out to the state authorities to find out more about their processes.
Get An Employee Identification Number
The Employee Identification Number (EIN) is your business’s tax ID number. The Internal Revenue Service (IRS) will assign you this number after applying for it.
Running your business in the U.S. requires that you have an EIN; you’ll use it when filing your payroll and business income taxes.
You can apply for the EIN online via the IRS website, fax, or mail. Ensure you provide the necessary information, like your chosen business structure, the highest number of workers you expect to have in the next 12 months, and more.
Online EIN applications get you the number almost instantly after submitting the necessary documents. Nonetheless, you must wait four weeks for mailed applications and four days for faxed ones.
Apply For Different Licenses And Permits
After successfully registering your business, what’s next for your company? Before being legally allowed to commence operations, you need to apply for and obtain different licenses and permits. These are documents authorities hand over to business owners certifying that they’ve met different business operations, requirements and standards.
The permits and licenses you’re required to provide for your business depend on where your business operates, the nature of your business operations, and the like. In fact, businesses dealing with special goods might need to apply for special permits from different government agencies.
Business permits cost differently from one another. Do consult with the issuing agency and coordinate with them so that you’ll be granted permission to do business.
Business registration is the starting point of launching a company. Henceforth, it’s indispensable, and one should take it seriously.
If you’re a would-be company owner that wants to start doing business soon, don’t forget to take time and register your startup with the authorities. Luckily, the guide above will help you out; it has listed the different steps you need to take. The points mentioned, nonetheless, are meant as general advice.
Different businesses may need to undergo different processes in business registration. Reach out to a business lawyer, business mentor, and the like to help you if you have specific concerns concerning the whole business registration process.