Last week we discussed the anticipated surge in new businesses opening up this year. Starting a businesscan evoke emotions like excitement and hope, but can also lead to feelings of overwhelm regarding the process. Today we discuss how to register a business, the reasons to register, the benefits of registration, and the steps you need to take to help eliminate any sense of dread while going through this process.
First, choose a business structure. Your business structure is the foundation of your business, including how your taxes are filed, how personal assets are handled, and how day-to-day operations are controlled. It also impacts business registration, including how and who you register with. There are many types of business structures, so it’s important to choose the one that best suits your organization’s needs.
After choosing the structure, it’s time to settle on a location for your business. Even if your company operates mostly online, you still need to register a location for operations like receiving government documents, filing taxes, and more. Next, you’ll want to register yourbusiness nameto prevent other businesses from using it now or in the future.
Next, register with the IRS. Registering your business with the Internal Revenue Service will give you afederal EIN, or Employer Identification Number. This is essentially a Social Security number for businesses (sometimes referred to as a federal tax ID). EINs are necessary for things like filing taxes, opening business bank accounts, and hiring employees.
You may need to register with state and local agencies such as: Department of Revenue, Secretary of State, Better Business Bureau, Franchise Tax Board. Each entity has its own requirements that must be followed, so it’s worth working with an attorney to get things done correctly and in a timely manner. Finally, specific licenses and permits are required to run different businesses, and they vary by industry and state. It’s a good idea to have any necessary licenses or permits before you start your business to avoid future problems. If you want to know what licenses and permits are needed for your business, you can contact your local branch of theSmall Business Administration.
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