Registering your business makes it legal and protects you from personal liability should something go wrong with your business. It also gives your business credibility and helps you secure a bank account. Getting started is simple and free. Respond to a few questions, and we’ll help you.
Taxes
When you register your business, the state will require that you pay taxes. These may include sales tax and income tax, depending on the type of business and the location where you operate it. In addition, many states require that you have a registered agent. A registered agent receives official papers and legal documents on behalf of the company. Some states allow you to register online for this position, while others have you fill out paperwork in person. Once you have a business name and structure, it’s time to apply for an Employer Identification Number (EIN). A tax ID number distinguishes your business as its legal entity. It protects your assets from liability, simplifies bookkeeping and taxes, and allows you to build credit for your business. You can request an EIN on the IRS website.
Before completing any application, make a list of all the information you’ll need to provide, including your business information, name and address, principal owners, and EIN. If you have any questions, consult a qualified tax professional or lawyer. The marketplace connects you with top-rated lawyers from around the country. They come from top law schools and have an average of 14 years of experience, including working with startups and large corporations.
Licensing
Whether or not you register your business online, you will probably have to obtain local and state licenses and permits. These are usually based on the type of goods or services you offer. In addition, you will most likely have to file taxes and other paperwork. It is important to know all the requirements for your particular state, as they can vary considerably.
If you form a corporation or limited liability company, Articles of Incorporation or Articles of Organization must be submitted to your state’s Corporation Division. It formally creates your business entity and allows you to receive an Employer Identification Number. It can be done online at the state’s corporation website in most states.
You must also file tax forms and obtain a business license if you operate a professional service, such as a law, medicine practice, or accounting firm. If you need clarification on the licensing requirements in your state, you should consult with a lawyer or another expert before proceeding. For a complete list of business registration requirements for your state, visit the government’s website and check with your city or county’s tax office to determine what steps you need to take.
Credibility
Online business registration helps give your company credibility, and it’s essential for e-commerce entrepreneurs. Whether you sell ebooks, software, an online marketplace, small tools, or physical goods that you ship to people, you should register as a business to protect your assets and give your brand credibility. It also enables you to make payments for orders directly into your business bank account instead of your own, which is more professional and instills customer confidence that your online store is legitimate. The other reason for registering your business is to limit your liability. Without a registered company, you are responsible for the activities and debts of your company. If the business goes bankrupt, your assets can be used to settle the debts. Registering as an LLC or corporation limits your liability and saves money on taxes by separating your business assets from your own.
Another advantage of registering your business is that it helps you comply with state regulations. If your state requires you to document business activity and keep accounting records, registering as a corporation will help ensure you meet those requirements. A commercial online registration service can help you incorporate as an LLC or corporation, secure a DBA name, get your EIN Tax ID number, compose an operating agreement, and more. Additionally, most commercial online services have staff on call 24/7 to help you with any questions or problems with the process.
Insurance
Registering your business becomes a legally separate entity, and you must obtain insurance coverage to protect yourself from liability. It is a requirement for registered companies and a good idea for all entrepreneurs. It will not only save you time and money, but it will also give you peace of mind that your assets are protected. The insurance requirements for your business will vary by state and type of business structure. However, you will need to have at least general liability and workers’ compensation coverage in most cases. In addition, it is a good idea to carry professional liability, auto and property insurance.
Another reason to register your business is that it will allow you to open dedicated business bank accounts. It will help you keep your personal and business finances separate, reducing tax liability and making bookkeeping easier. It will also improve your company’s credibility with clients and customers. If you need help registering your business, consider working with an experienced small business attorney.
