It’s another year, and you’re ready to start that business you always dreamed of, but how to go about starting it? Start with business registration. You can’t officially form a business until you’ve filed all the paperwork needed and paid all of the fees involved.
These business registration tips are a must-read. I have discussed what you need for registration of your business start-up such as business name, license, use of legal service, etc.
- Select a Suitable name for your Business
Choose a Unique Name
Choose a name for your company that is unique and easy to remember. Make sure that the name has not been used by another company in the same industry, even if it is spelled differently.
Keep It Short and Simple
The shorter the better when it comes to choosing a company name especially if you plan on using social media platforms such as Twitter or Facebook where character limits apply.
Be Descriptive but Catchy
When selecting a company name, look for something that communicates what your business does and who it serves, but also something that’s memorable and easy to pronounce.
You can always try getting assistance from a legal service or website if you find it difficult to come up with a suitable name on your own.
- Select an appropriate business structure for your needs
Before you register your business, you need to determine what type of legal entity you will use.
The type of structure you choose will determine how much paperwork you have to file, what taxes you pay and whether or not you are liable if your business fails.
The most common types of businesses are sole proprietorships, partnerships, and corporations. There are also other structures that can be used as well such as limited liability companies (LLCs), which are discussed below.
Know which state laws apply to your business
Each state has different laws governing which type of entity can be created there, so it’s important that you understand these rules before making any decisions about what kind of structure works best for your needs.
The biggest advantage of a sole proprietorship is that there’s very little paperwork involved in starting and operating the business. The main disadvantage is that you’re personally liable for any debts incurred by your company.
Two or more people can join forces to form a partnership in which they share ownership and responsibility for managing their business operations.
Partnerships have some of the same tax advantages as corporations but they don’t offer personal liability protection from lawsuits or creditors.
Limited liability company (LLC)
An LLC is a hybrid entity that provides some of the benefits of a corporation and some of the benefits of a partnership or sole proprietorship. LLCs are formed by filing articles of organization with the secretary of state in whatever state you want to operate in
The LLC offers protection against personal liability, which is why it’s so popular with small businesses.
A corporation is a business entity with a separate legal identity from its owners. The owners of the corporation are called shareholders and they own shares in the company.
The shareholders elect directors, who then appoint officers to run the day-to-day operations of the corporation.
- You’ll Need to Choose a Registered Agent
Choosing a registered agent is one of the first steps in forming your LLC. The registered agent is the person or company that will be responsible for receiving legal papers on behalf of your business.
When choosing an agent, you want to select someone who can provide the services you need and who has experience with the state in which you plan to register your LLC. You should also make sure your agent is accessible by mail and email, as well as by phone.
- You’ll Need to Apply for A Business License
A business license is official permission to operate a business. It’s a legal document that lets you open a bank account, hire employees and pay taxes.
Most states require businesses to register with them before they begin operating. This ensures that all businesses are paying their fair share of taxes and following other rules and regulations set by state law.
How do I know whether or not I need a license?
If you’re unsure whether you need an occupational license for yourself or your employees, check with your state department of commerce or labor or equivalent to find out what requirements apply in your state.
You should also check with your local government because some cities have their own licensing requirements separate from those of the state government.
5. Select a Suitable Location for your Office or Business
Select a suitable location for your office and make sure it meets all safety standards set forth by local and state laws. Also, make sure that it is easily accessible by customers who may want to visit or call in for information or services needed in their homes or offices.
Is there enough parking space available at the place?
Parking space is essential for any business because people will not like walking long distances just to reach their destination. You should also check if there are any restrictions on parking or if there are any fines imposed on parking in certain areas near your office.