06/28/2022

Registering a Business In The USA Master Guide

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Starting a business is an exciting adventure with unexpected twists. This includes creating a business plan and researching the market.

Registering a business is an important step. Click here for a step-by-step guide.

Registering a business is smart.

Registering your business is formal, but there are certain activities you can’t do without it. 

Personal Liability Protection

You can protect your assets against bankruptcy and debt by registering as an entity. Owners can be held personally responsible for any bankruptcy or other debt. However, many businesses, including limited liability corporations (LLCs) and corporations can be treated as separate entities. This will protect your finances in the event that these business structures fail or go under.

Your business’ legitimacy is ensured

Investors will verify your legal status before they invest in your company. Investors are more likely not to approve businesses that aren’t yet registered or incorporated.

Establishing trust at the beginning of your business venture is essential. 

This allows employees to be hired

Do you want to hire employees? This will enable you to route the tax payments of your employees. It also allows you to offer benefits like pension plans or health benefits.

Protect your business and brand

It is important to register your business name after you have worked hard to build your company. Registering your business name ensures that you can use it only. This can lead to legal issues and confusion for customers if another person opens a local company with a similar name to yours.

Register your company in 5 simple steps

Let’s take a closer look at how to register your company.

1. Create your business plan

Writing a plan is the first step to starting a business.

2. Locate your business.

While it might seem obvious that your company’s address will be the place you are located, you need to take into account what requirements each state will have. You can move to other states or you may be interested in another location. Before you decide on the address for your company, it is important to determine your market.

3. Select a business structure

There are many business types that you should be aware of. This list will help you to understand basic business structures.

  • Sole proprietorship – Your personal and business assets are intertwined when you become a sole proprietor. This is because you will be responsible for the management of the business’s financial affairs.
  • Partnership Each partner has the same responsibility for the company. 
  • Corporation An independent legal entity, a corporation is ideal if you want to give shareholders the right to control your business.
     
  • Limited-Liability Corporations (LLCs: LLCs allow owners to separate their assets from business assets and protect them against liability. 

4. Register your name

Make sure you confirm that the name you choose has not been taken. Check with the U.S. Patent and Trademark Office before you register your company name. Search social media and Google for your name and confirm if it’s in use.

The first step in registering your company name is to create an entity such as an LLC. It will vary depending on where your home is.

5. Register your company and obtain the permits

Next register with the relevant entities to obtain the permits you need to operate your business. 

  • Register with the IRS. To file taxes on your business, you will need to have an EIN.
  • Register with your state. Register with your state. The fees and paperwork required for registration may vary depending on how your business is structured.
  • Register locally
  • Register trademarks
  • It is important to have the right permits and licenses. This step will vary depending on your industry. The U.S. Small Business Administration website is a good place to find out if permits are required.

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