Starting a new business is an exciting, yet sometimes overwhelming prospect. To make your company official, there are a few important steps that need to be taken. To make sure you are on the right track, it is important to understand the registration process to ensure your business has all the necessary paperwork, licensing and taxes in order.
Naming Your Company
The first step in the registration process is choosing an appropriate name for your company. This should be memorable, descriptive and legally acceptable. To ensure your chosen name is legally suitable, research the laws of your state and industry, as some words and phrases may be restricted. Additionally, check to see if there are any trademarks or copyrights on the proposed name. Lastly, make sure to verify that the domain name and social media handles for the company name you’ve chosen is available.
Determining Your Business Tax Responsibilities
In order to properly register your company, it’s important to understand your business tax responsibilities. Depending on the type of business and its annual income, there are a variety of taxes that may need to be filed, including federal income tax, state tax, payroll tax and local business tax. To figure out the total amount of taxes owed, it may be necessary to hire an accountant who is familiar with the specific ordinances of your state. A good accountant will be able to help you determine the amount of taxes owed and how often they need to be paid.
It’s also important to understand the tax credits and deductions for your business. Doing some research can help you find applicable credits and deductions that could save you money. Additionally, setting up an automated payment plan for your business taxes will help ensure that you don’t fall behind on payments.
Obtaining the Necessary Licensing
What kinds of licensing is required for your business largely depends on the type of company and your specific industry. Generally speaking, businesses that are considered hazards or those with the potential to cause harm need to be properly licensed and insured. Examples of these businesses include restaurants, daycare centers and beauty salons. Additionally, certain professions, such as attorneys and real estate agents, need to be registered or licensed to legally practice within their state.
Depending on where your business is located and the type of business, you may need to apply for a license from multiple government agencies. Gather all the necessary documents, such as proof of your company’s registration, and fill out the paperwork. Research local, state and federal regulations for your particular business to understand the necessary steps and requirements for obtaining the right license.
Filing The Appropriate Paperwork
It is important to make sure all of your paperwork and documentation is filed properly and accurately. Since each state has its own set of regulations, it’s important to research the paperwork needed for your particular state. In some cases, the paperwork needed to register your company may be similar to other state requirements, while in other cases it may be unique. Your local Small Business Administration (SBA) office can provide further information and assistance in navigating the paperwork required for your business.
If you’re setting up a business outside the United States, research how to file the appropriate paperwork for foreign businesses. If you’re starting an eCommerce business, becoming familiar with the rules and regulations for online businesses is essential for a successful registration process. Lastly, to ensure your company is registered with all appropriate tax departments, research any sales, payroll and income tax documents you must file for your business.
Making sure your company is properly registered is an important step to ensure the success of your business. From choosing an appropriate name to understanding your tax responsibilities, there are a multitude of important steps that must be taken in order to have a successful registration process. Following these steps correctly and carefully will help to ensure that your company is set up legally and correctly, thus protecting you and your business.