Especially if you are used to the usual 9-5 routine in a day job, being your own boss can be a great source of life satisfaction. Unfortunately, however, it doesn’t always come served on a silver platter. More often than not, you have to drop a few liters if not tons of sweat right from the word go for it to be successful. In other words, it takes great effort, and it all starts from coming up with an idea, conducting research, raising capital, creating a business plan, and the list goes on.
Most importantly, your business has to be registered with the appropriate authorities for it to become a legal entity. The popularity, reputation, and recognition of your brand heavily rely on it. When your business is registered, your target consumers, potential clients, and potential investors consider you legit. Especially when starting an LLC, business registration can help keep you from trouble with the laws of the land within which you operate. But most people don’t know where to start when registering their businesses or starting a limited liability company. Here is a brief guide for willing entrepreneurs on how they can register a business and take on the path to success.
Pick a Business Name
Do you know that your business name has a push and pull force to your target audience? Moreover, if your business is higher in the alphabet, you have higher chances of being spotted than when your business name is at the tail. Names higher up in the alphabet have a higher billing. When you are picking a business name, there are a few factors you need to consider to avoid issues soon. Consider the availability of the name and adhere to the set rules. Overlooking these rules can get your paperwork rejected.
Work With an Expert Incorporation Service
When starting a business, you may not be familiar with all the legal and regulatory requirements put in place by your local authorities. This means that you may have to visit countless offices in the process, considering the bureaucratic society we live in. This is where professional incorporation services come in. As we will see below, this depends largely on the kind of business you intend to start. As Jon D explains in a recent review piece, forming an LLC with CorpNet takes just a few steps and you’re done. By working with a widely recognized incorporation service, the entire process becomes easier and less frustrating. You also eliminate the legal risks involved in the process, and everything can be done from the comfort of your home.
Choose Your Business Structure Carefully
Regardless of the type of business, there has to be a structure that governs its livelihood. It can either be a partnership, an LLC, or a corporation. Corporations and LLCs have limited liability protection, but the latter allows you to pass through taxation from the company’s profile to the owner’s personal income. This makes it easier to lower and file taxes. You have options to choose on which category your business will be placed. Factors to consider when choosing a legal structure include:
- Availability- Permitted growth and limitations
- Complexity-Their growth support level
- Costs- formation and Maintenance
- Financial Capacity-Ability to access funds
- Control- Active roles owners play in the business
Find Your State of Domicile
Paying taxes, voting, and claiming benefits are an important part of any business entity, and that will not go unmentioned. However, a domicile has different definitions depending on the grounds of what is at hand. You must not register your business where you live. At the end of the day, the success of your business is what matters most. Find a business-friendly environment that has favorable regulatory requirements or measures in place. Additionally, you have to ensure that your taxes are favorable and the regulatory requirement burdens are those that favor your business.
Register With the Authorities
Regulatory paperwork can drain the energy out of you if you do not know what direction to take. If you know the best channel, the process will be painless if not entertaining. The secretary of state will need your business information on his database. This includes info about the board of directors, bylaws outlining the business articles of incorporation, and the most obvious part of any legal requirement – the fees. Thanks to technology, you no longer have to walk up and down the authorities’ corridors to submit information. You can use a portal to make all the applications electronically.
Register For Taxes
Give to Caesar what belongs to Caesar! In short, if they taught you well, you know that you must pay your taxes as an entrepreneur. What does that exactly mean? You need to own your business property, legally account for transactions, the business’s running facilities, hire employees, and have a significant impact on the growth of your state economy. In line with taxation, there are a few factors to consider when registering your business:
- State income and Franchise taxes
- Sales and use tax
- Employment taxes
- Local taxes
All the above depends on your operation as a business, which generally involves the state revenue department’s periodic filings.
Business registration is required from every business that is operating legally. If local law enforcement closes down on you when you lack proper registration documents, you could easily find yourself in hot soup. The few tips above should enlighten you when thinking of registering your business.