Starting a business can be an exhilarating and fulfilling pursuit. However, the task of business registration might appear intimidating due to the numerous steps involved and the vital choices to be made. It’s not uncommon for entrepreneurs to feel overwhelmed by this process. But fret not; knowing how to register a business need not be a challenging job.
This blog post will provide you with a step-by-step guide and useful tips and resources to make the process of starting a new business or registering an existing one easier. The guide consists of seven simple steps that will give you the confidence to navigate this process with ease.
In case you still find it overwhelming, we have compiled a list of some of the best business registration services, including ZenBusiness, that can handle the job for you when you want to register a business.
How to Register Your Business in 7 Simple Steps
Business registration is a straightforward process when you’re aware of the steps involved. By following these seven steps, you can launch your business in no time.
Step 1: Choose Your Business Structure
The type of business structure that would suit your needs best relies on the nature of your business and your aspirations for growth. As we have previously stated, there are several types of incorporated and unincorporated businesses that you can consider. To further understand which option would work best for you, let’s delve into each of these choices and their operations.
Remember that business registration is only necessary if you opt for a structure that demands incorporation, such as the ones mentioned below.
Sole Proprietorship
In this form of unregistered business, there is no distinction between you and your business. You will be entitled to retain all the gains, but you will be required to pay taxes on them. Additionally, your properties may be utilized to settle business obligations or expenses incurred as a result of its operations (such as if a customer is harmed while using your product or service).
General Partnership
A general partnership is a type of business structure where two or more individuals own and run the business. Just like a sole proprietorship, every partner is fully responsible for the business’s actions, and they’re personally accountable for paying off debts, taxes and fulfilling legal obligations that may arise.
Limited Partnership
A limited partnership involves a general partner who manages the business and is responsible for all debts and losses incurred. The limited partners, on the other hand, provide financial investment and have limited liability based on their investment. Their involvement is restricted to providing funds, and they’re not involved in the day-to-day operations of the business.
Limited Liability Partnership
An LLP, short for Limited Liability Partnership, is a type of incorporated business where all of the partners are joint owners of the company. Their liability for the company’s debts and actions is proportional and limited to their initial investment. This means that they can only lose the amount they’ve invested. It’s important to note that Limited Liability Partnerships may have restrictions in some industries and professions in certain areas of the US, so it’s crucial to check local regulations.
Limited Liability Company
A Limited Liability Company (LLC) creates a legal separation between the company and its owners. In other words, it becomes its own legal entity once it’s incorporated.
This option is particularly appealing to small business owners as it provides asset protection and certain tax advantages. The registration process for an LLC is also relatively straightforward compared to that of a full corporation.
C Corporation
C Corporations are typically sizable organizations with numerous investors and shareholders. Comparable to other incorporated companies, a C Corporation provides legal separation of the owners and the company’s assets and liabilities.
Establishing a C Corporation entails several obligations, such as conducting annual meetings and electing a board of directors through shareholder votes.
Step 2: Register Your Business Name
There are multiple options for naming your business, including registering a legal entity name or trademark or operating under a different name while still registering a legal name. The rules and regulations regarding naming vary by state, so it’s important to research the requirements for the state in which you plan to register a business.
The choice of naming route will depend on the specific needs and circumstances of your business.
You have the option to follow all three routes to ensure the exclusivity of your name, but you may also opt for just one. While it’s not mandatory, it’s advisable to use the same name for all registration methods.
Now, let’s delve into each naming option in more detail.
Entity name
In most states, businesses are obliged to register a legal entity name, which serves as the state’s identification for the company. To avoid any potential conflict, entity names must be one-of-a-kind.
State naming laws may vary slightly, with some stipulating specific company suffixes (like incorporated, limited, or corporation), while others mandate that the name reflect the nature of the business being registered.
Trademark
A trademark can safeguard your business name on a nationwide level. When you trademark a name, it becomes exclusive to your business, and no one else can use it when they register a business in the US.
It’s a smart move to check the US official trademark database before finalizing a name to ensure it’s not already trademarked. This step is crucial because violating another party’s trademark is a criminal offense that can lead to legal consequences.
Doing Business As
You have the choice to register a business with a particular name and use a different name for operating it. This is commonly known as a Doing Business As (DBA) name. These names are bound by federal trademark laws, however, it’s not mandatory for a DBA to have a unique name at the state level.
Step 3: Consider Taxes and Other Costs
Each state has its own set of regulations regarding business registration and taxation. This implies that business registration in a specific state could result in certain tax advantages and other cost savings.
If you intend to operate in various states, it’s essential to ensure that your business meets the requirements for each state. To simplify this process, you can take advantage of business registration services such as ZenBusiness.
Step 4: Register and Acquire Licenses and Permits
The steps to register a business depend on the regulations of the local authority where you plan to register a business. While the requirements may differ from state to state, there are some universal prerequisites.
To begin with, you must acquire an Employer Identification Number (EIN), which is a tax identification number that guarantees your business is in compliance with tax laws and able to take advantage of tax benefits, hire workers, and carry out other operations. In addition, you will need certain essential details and documents, such as:
- The business’ registered address
- Identifying details about the owner(s) of the company
- An official business name
- Articles of formation or incorporation
The documentation that you’re required to provide to your local governing body will vary depending on the kind of enterprise you intend to own when you register a business.
Document Type:
- LLP: Partnership agreement
- LLC: Articles of organization
- Corporation: Articles of incorporation
Governance:
- LLP: Partnership agreement
- LLC: The operating agreement
- Corporation: Organizational bylaws
Ownership:
- LLP: Partnership agreement
- LLC: Member certificates
- Corporation: Share certificates
Tax:
- LLP: EIN (Employer ID Number)
- LLC: EIN (Employer ID Number)
- Corporation: EIN (Employer ID Number)
Step 5: Open a Bank Account for Your Business
Once you obtain your EIN, you can proceed to set up a business bank account.
Laws that regulate Limited Liability Partnerships (LLPs), Limited Liability Companies (LLCs), and corporations mandate the opening of a business bank account. Conversely, sole proprietors and unincorporated partnerships are not required to have separate personal and business bank accounts.
The process of opening a business account is easy and straightforward. You can visit your local bank and complete the necessary paperwork. However, it’s advisable to compare the rates and benefits of different banks before selecting a particular provider.
It’s a wise decision to have a designated company bank account, even if you operate as a sole proprietor or unincorporated partnership, to keep your personal finances separate from your business finances. This will prevent complications if you decide to incorporate your business in the future.
Step 6: Protect Your Intellectual Property
When you register a business, it’s important to consider whether you have any intellectual property that needs protection. This will depend on the nature of your company.
Most businesses aim to protect their name and logo from being replicated and utilized by others. Depending on whether your business sells products or services, you may want to secure the design of your goods or the creative works, such as writing, designs, or music, that you produce.
There are multiple methods to accomplish this task, and it’s advisable to initiate these applications promptly to prevent your intellectual property from being utilized by others.
Trademark
A trademark is a unique identifier, such as a word, phrase, symbol, or sign, that distinguishes a product or service from others in the market. Examples include Nike’s Swoosh and McDonald’s “I’m lovin’ it.”
To gain recognition, trademarks need to be registered. This process typically takes four to six months to finish. Once your trademark is registered, it’s safeguarded across the USA, and you have the right to sue anyone who uses it without your permission.
Copyright
Copyright law safeguards a wide range of creative works, including written pieces, software, website content, movies, audio recordings, photographs, and other creations. The exclusive rights to distribute, reproduce, create derivatives, or sell intellectual property belong to the original creator alone.
Copyright protection is automatically granted when a new work is created, and the rights can be transferred to another owner through sale, gift, or other legal agreement.
Patent
If you have created a new product or machinery, it’s highly recommended to secure a patent for it. This legal protection grants exclusive rights to the owner, prohibiting others from producing, selling, or importing the item for a certain period.
The patenting process can be lengthy, spanning up to five years, making it crucial to initiate early if you possess an original invention that requires safeguarding.
Step 7: Set Up Your Payment Infrastructure
If you want to be prepared to serve your customers right after you register a business, it’s important to have a simple and convenient payment method in place.
Pay.com provides a comprehensive payment infrastructure that includes no-code solutions and APIs that are developer-friendly. The platform is highly adaptable and can be easily tailored to meet your business objectives.
Pay.com offers a convenient payment solution that accepts a diverse range of payment methods. Our secure platform allows your customers to pay using their preferred payment method, be it ACH transfers, credit or debit cards, digital wallets like Apple Pay and Google Pay, and more. This flexibility allows you to sell your goods or services from anywhere while providing a hassle-free payment experience to your customers.
Best Business Registration Services
Business registration services provide crucial support to entrepreneurs and small business owners who are looking to establish and manage their companies. These services assist with business registration for new entities, obtaining licenses and permits required by law, and ensuring that all state and federal regulations are being followed. They provide a range of solutions to help businesses start and stay on the right track.
Furthermore, some services even offer personalized consultation and ongoing support to ensure that businesses thrive.
ZenBusiness
ZenBusiness is a digital platform that assists entrepreneurs and small business owners in launching and expanding their companies. It provides an array of services at a reasonable cost, including registered agent services, annual report filing, and additional features. ZenBusiness also offers continuous guidance and resources to ensure businesses comply with regulations and prosper.
Swyft Filings
Swyft Filings is an online platform that offers business registration services with a focus on fast and effortless business formation. They provide a comprehensive range of business services, such as LLC formation, incorporation, and compliance. Moreover, Swyft Filings offers customized support to assist businesses in navigating the formation process and ensuring compliance with state and federal regulations.
Tailor Brands
Tailor Brands is an online service that specializes in branding and design for businesses. They assist businesses to establish a professional and consistent brand identity by offering various branding packages such as logo design, business card design, and social media branding. Tailor Brands offers a variety of design tools and resources that allow businesses to customize and create their own branded assets.
Northwest Registered Agent
Northwest Registered Agent is an online platform that provides a variety of business registration services to support entrepreneurs and small business owners in establishing and expanding their companies. The company’s services include personalized assistance, registered agent services, compliance management, and document filing. They also offer business formation services for a variety of entities such as LLCs, corporations, and nonprofits.
With an unwavering focus on quality and exceptional customer support, Northwest Registered Agent is a reliable partner for businesses of all sizes.
Incfile
Incfile is a company that offers quick and reasonably priced services for when you want to register a business. They have various packages that include registered agent services, compliance management, and document filing. Their platform is straightforward and easy to use, making the business registration process simple and stress-free.
Furthermore, they provide continued assistance and resources to help businesses remain compliant and advance. With a focus on affordability and convenience, Incfile is an excellent choice for entrepreneurs who want to establish a new business or register an existing one.
Other Ways to Register Your Business in the US
Register with Federal Agencies
Most businesses don’t require federal registration to become a legal entity, with the exception of obtaining a federal tax ID. Small businesses have the option to register a business for trademark protection or tax-exempt status with the federal government.
If you wish to trademark your business, brand, or product name, you can register with the United States Patent and Trademark Office after you register a business. To achieve tax-exempt status for a nonprofit corporation, you may choose to register a business as a tax-exempt entity with the IRS. In order to establish an S corp, you will be required to submit form 2553 to the IRS.
Register with State Agencies
If your company is classified as a nonprofit corporation, limited liability company (LLC), partnership, or corporation, it’s likely that you’ll need to register a business with each state where you engage in business operations.
When it comes to engaging in business activities, it’s usually deemed that you’re doing so within a particular state when:
- Any member of your staff works within the state’s borders
- Your business is physically located within the state
- You frequently hold face-to-face meetings with clients within the state
- Depending on the state’s laws, you may be able to register a business online or you may have to submit physical copies of the necessary documents in person or via mail
- A substantial portion of your company’s income is generated from the state
To legally operate a business in the United States, registration with the Secretary of State’s office, a Business Bureau, or a Business Agency is mandatory in most states.
Register with Local Agencies
Usually, it’s not mandatory to register a business with county or city governments to establish it. However, if your business is a partnership, LLC, corporation, or nonprofit corporation, you may have to apply for licenses and permits from the county or city.
In some cases, if you have a DBA or a trading name, certain counties and cities may require you to register it. Every locality has its own set of regulations concerning registration, licensing, and permitting, so it’s best to check with your local government’s website to learn more.
Benefits of Registering Your Business
In the United States, it’s not mandatory to register a business, but there are several advantages that you can reap by doing so.
The act of business registration can have a significant impact on various aspects of your enterprise, such as:
- The deductions you’re allowed to make
- Your required reporting
- Your taxation rates
- Who is responsible for your company’s commitments
Find Out If You Need to Register Your Business
When starting a business, it’s important to consider your location and business structure as they determine the process necessary to register a business. Once you have determined these factors, the registration process becomes straightforward. For small businesses, choosing to register a business name with state and local governments is usually sufficient.
However, if you conduct business using your legal name, you may not need to register a business at all. It’s important to note that choosing not to register a business could result in missing out on personal liability protection, legal benefits, and tax benefits.
Do I need to Register an Online Business in the US?
In the United States, both online and physical businesses are subject to the same regulations. As a business owner, you have the discretion to determine whether or not to register a business. Sole proprietors and general partners are not required to register a business, but limited liability partnerships, limited liability companies, and corporations must be registered.
Before making a decision, consider where you intend to conduct business. Choosing to register a business that’s wholly online can enhance its credibility if you plan to sell goods or services on a national or international scale.
Online shoppers are quite knowledgeable nowadays and prefer to conduct research before buying a product. To enhance the legitimacy of your business, you can add a company suffix like limited, incorporated, or corporation to your business name.
If you find it challenging to navigate through this process, you can seek assistance from online registration services such as ZenBusiness, Swyft Filing, or Tailor Brands. These services can provide valuable support and guidance to your business.
How to Register Your Business – Frequently Asked Questions
What Do I Need to Register a Business in the US?
Business registration in the US is a straightforward process. To start, you must choose a name for your business. Next, you must select the state where you want to incorporate your company. Based on your selection, you will have to gather the necessary paperwork and funds to register a business.
How Much Does It Cost to Register a Company in the US?
The expenses involved when you register a business in the United States differ depending on the state you choose. Typically, you can anticipate paying anywhere between $250 to $1,500. To ascertain the accurate costs of incorporating your company and completing all necessary documentation, it’s best to consult with your local authorities.
How Can a Foreigner Start a Business In the US?
If someone from another country wishes to register a business in the United States, they can follow the same procedure as an American citizen. It may be advantageous to establish a corporation or an LLC based on your visa conditions. This will make the company a separate entity that can operate even when you’re not present in the country.
Can a Non-citizen Start a Business In the US?
Yes, it’s possible for non-citizens and non-residents of the USA to register a business in the country. The USA is often referred to as the “land of opportunity” for a reason. Majority of the states do not ask for citizenship or residency as a prerequisite for entrepreneurship.
Bottom Line on How to Register Your Business
Business registration in the US can be daunting, particularly when it comes to filling out paperwork that could make or break your operations.
However, understanding what needs to be done and following the simple process we’ve outlined above can significantly reduce your stress and ensure that your registration is correct the first time. If you’re considering business registration services, we highly recommend ZenBusiness, as they offer a range of services that can take your business from registration to obtaining a Business license and permits to report filings.
![How to Get a Business License? [A Comprehensive Guide]](https://citizenside.com/wp-content/uploads/2023/11/how-to-get-business-license-300x169.png)
