How to register a business?

If you want to start a business you would, of course, need to register the business before you start. This ensures that you have completed all the legal formalities and do not face unnecessary problems later. How do you actually go about registering the business? What are the steps involved? Read on to know the answers.

Finalize the business form

You may be forming the business as an individual proprietorship or a partnership. You may also register a corporation or a limited liability company (LLC). The decision on the business form depends on factors like finance needed, tax liability, and the control you want to retain.

Decide the location

You may want to start your business from your present location. You may also choose a location depending on the type of business, i.e: availability of resources, customer potential, etc. You may also want to choose a state, which is business friendly. A business-friendly state would give you the benefit of lower taxes and easier procedures.Some business-friendly states in the USA are Delaware, Nevada,and Wyoming.

Registering the business name

The name of the business is important and you need to have a unique name. You may use an assumed name or a doing business as (DBA) name. The name of the business needs to be registered in the local county clerk’s office or the state government. Even if your business form is a corporation or LLC you can register in an alternate name. You need to make sure you are not infringing anyone’s trademark when you register a name.

Register with the IRS and state agency

Once you start a business you would be an employer and would have to get an Employer Identification Number (EIN) from the IRS. This is a unique number for every entity. You also need to register with the state revenue agency (as applicable). This is required if you are collecting sales tax.

For corporations and LLCs

Corporations and LLCs need to have a registered agent who will have a physical presence and be ready to accept any documents for the company. A physical address may also need to be provided to the state authorities. You then can open a bank account in the name of your business.

Get business permits and licenses

The license and/or permit that you need depends on the state where you operate and also the type of business you are in. A license may be needed at the local level, state level and/or the federal level. So you need to find out the applicable permits required and ensure you acquire them. For some businesses, you may need an environmental permit.

You can use the services of an attorney or an agency to complete all the legal formalities. This makes it easier as you don’t have to worry whether you have missed any license or permit. You can, of course, do all this yourself, but have to put in some effort.

Make sure all your licenses are in order. Running a business without a license is illegal and can affect your business prospects.

Other basic formalities

Every business in today’s world needs to have a website. Other requirements you need to fulfill include designing a logo and developing the brand name.

Registering a business has many steps that need to be completed. All the legal formalities need to be done before the business can start.