The Benefits of Registering Your Business
Once you have chosen your business, christened it and have a business plan in place, the next step is to register your business. Unless your business is registered you cannot apply for business license or even a bank account. If you want to conduct business in the US you need approvals from the IRS and DLA. There are Certified Registration Specialist across the country that can get you access to the database. Getting your company registered can make you eligible for government contracts, awards, grants and assistance. There are number of registrations including registering business structure, registering for permits, registering to pay taxes, etc.
How to register your business
Finalize your business structure
Decide on your business structure and check out the legal entities. This will determine the registration requirements. A business structure can be Proprietorship, Partnership, Corporation or LLC.
Registering with a legal name
Choose the right name for your business and get it registered with the government. Once this is done you need to register with IRS and apply for Federal Tax ID. A sole proprietorship firm does not require you to register at the state level. Once the business structure is categorized it is easy to register. If your business is not of permanent nature you can register it as sole proprietorship firm; as your business grows the structure changes.
Register your business with a legal name. Name of the individual/individuals are used to register sole proprietorship or partnership firms. For a Corporation or LLC the legal name of the business is used. The legal name is used on forms and other government documents. In case of using a brand name you need to register the assumed name separately. The legal name of your business will feature in all transaction documents including licenses, permits, employer tax identifications, etc. Assumed names can be used to sell products or for running a shop.
Applying for Federal tax identification
All employers, partnerships, corporations have to acquire from the US Internal Revenue Service Employer Identification Number (EIN) also known as Employer Tax ID and Form SS-4. This will help distinguish your business entity. Applying for EIN is easy; it can be done online and the service comes for free. The service is offered by Internal Revenue Service.
Just like how you registered for Federal Tax ID it is important to register with state revenue agency for Tax IDs. In case you are selling a product you have to acquire Sales Tax Permit. Taxes have to be paid at State and Local levels as well. Paying taxes at the state level will make you eligible for certain incentives.
Applying for licenses and permits
In order to operate in any country license and permits are essential. State or local government agencies can be approached to obtain general business license or industry oriented permits. Based on the type of the business Federal, State and Local licenses can be acquired. Some may require environmental permit. Acquiring proper licenses and permits can keep you away from expensive fines and penalties.
Read also Obtain Business Licenses & Permits