A Collection of Resources Related to Registering a Business
Once you have decided on the type of business you want to start, you will want to legalize your business and make it official. During the startup process, you’ll be spending a lot of money. You want to record each of the purchases for your profit and loss statements, so you know where you’re at financially as well as for tax purposes.
Registration is an important step. For example, if you’re getting a loan, renting, or leasing a building, it will all be under the business name. Therefore, you need to register and legalize your business before anything else.
Each of the sections below offers resources that go into detail for each of the steps involved. Various authors write each article; therefore, it’s to your advantage to go over a few articles in each section to gain a broad understanding of each step.
How to Register a Business
Here is a summary of the steps to take for registering a business. You’ll find the full details in the numerous sections below.
1. The first step is to decide on the structure you’ll need. For example, will you start as a sole proprietorship and incorporate it later? Or you have partners and want to create an LLC or incorporate. The section “Deciding on a Business Structure,” further down the page offers all the details.
2. You’ll want to decide where you are going to be running your business. Some companies will locate their main operation in a different state for tax and other benefits. Once you decide where your main operation will be, you can get the information for that state or province.
3. You’ll need to register a business name. This is something you’ll want to take some time to decide and research to make sure the name is not registered. See more below on registering a business name.
4. You may need to apply for a Tax Id. Not all businesses require one; once you have decided on the type of business you’ll be running, you can look into it. See the complete details in the Tax ID section.
5. Apply for any licenses and permits you may require. This will depend on the type of business you’re operating. Check with your local authorities to verify what permits you may need.
Deciding on a Business Structure
There are different types of business structures, like an LLC, Corporation, or a sole proprietorship. The articles below go in-depth for each type of structure and as well as the advantages and disadvantages.
For example, the quickest and cheapest way to start is as a sole proprietorship because you and the business are considered one. In contrast, the other types are considered as separate entities.
See below for the pros and cons of each of the types of business structures.
Deciding Where to Register Your Business
Some businesses will set up their main operation in a different state for several benefits, including tax savings. This is more likely for a larger business, a home-based business, or a company offering local services would most likely register in the home state.
The articles below go into the details for registering outside your state. Have a look to see if this is an option you may want to consider.
Register a Business Name
The name you choose for your business must be considered carefully. It needs to be something people can identify what have to offer and allow for the expansion of your products and services in the future.
For example, suppose you are going to start a business that makes pie. In that case, you could name your business Jane’s Tasty Pie’s, but what if down the road you decide to add Fudge brownies and pudding? You might be better off naming your business Jane’s Tasty Desserts.
The name you choose today will be the name you will be using for years to come. Take some time to come up with an appropriate name you like. Building a business name takes time and money. You don’t want to put in the effort for name recognition only to change it in the future.
Once you have a name selected, you must see if it’s available. If someone has registered it, you’ll need to choose a different name. It’s a good idea to come up with a list of names with your favorite choice at the top. That way, you keep going down the list until you find one that is available.
In addition to registering a business name, you’ll want a register a domain name that matches your business name.
See the resources below for more on choosing and registering a business name.
How to Get a Federal Tax Id Number – EIN
Just like a Social Security Number is used to identify your personal tax account, credit score, etc. A Tax ID also is known as an Employer Identification Number (EIN), is used for businesses, estates, trusts, etc.
It’s a nine-digit number the same as a Social Security Number, but the format is different, which makes it easy to distinguish between the two.
Common uses for an EIN include banking, hiring employees, and paying your business tax.
The articles below detail whether or not you’ll need to apply for an EIN and in which situations it is mandatory to have one. You’ll also find out how to apply for one and the information required to apply.
Advice and Help
As you can see, there are many steps and forms to fill out necessary to register a business. There are many setup options and a variety of advantages and disadvantages for each. Unless you have experience in this area, it can become overwhelming to figure out the best direction to take.
I feel it’s best to consult with your accountant and lawyer for the best course to take for the type of business you’re thinking of starting. They have a lot of experience and can advise you on the best route for your situation. In many cases, they can take care of the complete registration process.
Another way to take is to look at the companies below that offer this type of service.
Courses Related to Registering a Business
The Latest about Registering a Business
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