One of the most exciting endeavors is starting your own business, the thrill and the excitement of implementing your on paper ideas to your actual business is insurmountable. Now there are some simple steps to register a business in the USA, and this article will guide you to do the same easily without losing any sweat.
One important question that arises in the mind of a prospective entrepreneur is that why should he or she register their business, the answer to this is quite simple. It is not compulsory for a sole proprietorship company to register but we’d recommend you do so since it would recognize your company as a legal entity and would make a lot of processes such as tax filing simple.
However before we move on to the methods by which you can register and start your business in the USA, it is imperative that you collect all the necessary documents and information before we start out.
Documents Required for Business
Irrespective of the company structure you are gonna be registering, there are some basic documents required which would facilitate the registration of your respective companies, these documents are:
- Articles of Incorporation;
- The Official Name of your Business;
- An Official Address for your Business;
- Information about the owners of the respective company;
- Other relevant documents such as share certificates or partnership agreements depending on the business structure;
Now moving on to the steps where one can register and start their company and start their business, these steps may sound a little more complicated than they sound however, rest assured they are as simple as they come. These steps are:
Deciding your Company structure
Choosing your company structure entirely depends upon the type of business you’re going to start and the number of people involved in it. These are some of the options available to you to choose from regarding the company’s structure in the USA:
- Sole Proprietorship: As the name says, this business structure implies the fact that you are the sole owner and the only person who runs this business. In this type of business, there is no distinction between the owner and the business and hence in case of any trouble your assets also be taken into account together with the assets of the company. Sole Proprietorship is considered as the stepping point towards building a bigger business in the future.
- General Partnership – A general partnership company is formed when two or more people jointly decide to start a business. The partners have full responsibility and liability for running the company and hence in case of an issue, their personal assets may be frozen as well.
- Limited Liability Companies (LLC) – In case a person wants to separate their individual entity with their business. Opening an LLC is the best way possible since then the person wouldn’t be directly liable for any mishaps occurring within the company.
- Limited Partnership – In limited partnerships, there are two divisions of powers. There is one General Partner who carries out the day-to-day businesses of the companies and is personally liable. And then there are limited partners whose liability in the particular company is limited to a certain extent.
- Corporation – A corporation is the biggest company structure among all. In a corporation, the company is a completely separate entity from the owners.
Choosing a Company Name
There are four different ways in which you can submit and register a company’s name in the USA, however, the rules may vary a bit for different states. In order to register your company’s name, you need to register it each in the Domain Name, the Entity Name, the Trademark, and the Doing Business As (DBA) Name. Now you can register all four of these under a single name.
Deciding the State to register your Business in
In the USA it is not compulsory to register your company in the state you reside in. Since most of the states have different rules regarding the registration of businesses and different tax schemes, it is important that you choose the state accurately depending on your business type.
Registering with the Local Authorities –
Once you are done with deciding the Business Structure, Name, and the State in which you want to register your business, now is the perfect time to fill in all the required forms and register your business with the local authorities.
Acquiring Licenses and Permits
This particular step is very subjective to the type of the business you are planning to open. For example, if you are opening a restaurant, you’ll have to apply for a food permit from the relevant authorities before you start your business. Hence it is important for you to research in case your business requires a certain type of a license or a permit.
Opening a Business Specific Bank Account
Once you get the Employment Identification Number (EIN) after registering your business with the local authorities, it is now time to open an official bank account for your Business. Now it is not compulsory for a sole proprietorship company to have a business bank account however, it would make things simpler if one kept their personal finances separate from their business and it would also make the whole tax filing process much more simpler.
Filing for your Intellectual Property
Depending on the type of company being operated, you may or may not file for Intellectual Property based on either a Trademark, Copyright, and Patent. Now, this can be in the form of your Company Name, Logo, any sort of Web Content, a new Product, or a film.
These are the simple steps in which you can start and register your own business. It may seem overwhelming in the beginning however that is not the case at all.
Within a week or two, your company would be registered if you submit all the documents and information accurately, and then you are good to go with carrying out the operations of your Business with all the crazy ideas you have to make your business into a great success.