As an entrepreneur, registering your business is important if you want it to be identified as a legal entity. Let’s find out you can legalize your business and register it.
Opening a new company involves a lot of regulations and tax laws that need to be followed. You will need to fill out a few forms and register with the required state/national agencies to legalize your business. Different sets of rules apply to sole proprietorships, partnerships and companies – so you need to thoroughly check through the requirements of your respective state before registering your business. Let’s take a look at the steps you need to go through to register your business.
Identify your business type: There are many options to choose from when registering your company. Identify if you are a sole proprietorship, partnership or a limited liability company. Depending on which business platform will suit you best, you should decide on the best option. If you are planning to run the company all by yourself, then you need to register as a sole proprietorship. If you are working with one or more business partners, you will need to register as a partnership.
Choose a company name: You should shortlist a few names that you want to register your company with. You can consult local state agencies who are responsible for registering your name to find out if the names you have chosen have already been taken or not. You will not be allowed to register a business name that is completely the same as another business. Failing to comply with the regulations might see you being sued for copyright violations.
If you are a sole proprietorship, you do not need to add a suffix to your company name. For every other type of business, you need to provide a suffix like LLC, LLP, Co., etc.
Prepare an agreement:As a business, you need to draw up an agreement thatdescribes all of your organization’s policies, mode of operation, place of operation, etc. If you are going to register a partnership company, then you need to state the profit sharing ratio in a partnership deed. For preparing an agreement, you should consult a business, lawyer.
Complete all necessary paperwork: After you have prepared an agreement you need to file all tax and paperwork that are required in your city/state as well as national agencies. This is quite simple if you are a sole proprietorship business. All you need to do is register your business name and publicize it in a newspaper. For partnerships and other forms of business a tax, Identification Company is required for the company as well as an operating agreement.
Ensure you fill out all the necessary tax forms. If you will be operating in multiple states, you need to register your company in each of them and also comply with all the nuances in legal aspects for each of the states. If you are keen on taking your business online, you should consult with a business lawyer who will be able to guide you with all the regulations of online business. Once you register your business, you will be able to conduct all business operations legally.