Having their own business and startup is the dream of many, but only a small number of people can actually confirm this utterance. It is super cool and exciting to be a business owner or startup owner. However, very few people actually know what it takes to get a profitable company and legalize it.
Very often, entrepreneurs get caught up in the glitz of fame and do not realize that there are people who are about to become their first clients. So, having to register and legalize your business is the first step before you start operating, and knowing how to do this will save you a lot of time. Here are a couple of easy steps that will help you legalize your business without too much hassle.
Identify Your Business Structure
First and foremost, you need to be clear about the structure and type of your business. This will help you to understand how your taxes are calculated, how your day-to-day operations are handled and how they function, how to handle personal assets, and how to control your business. Identifying your business domain will help you with business registration.
There are various business structures that are super important and you can choose among them, and you need to find the one that will suit your needs the best. Some of the most common business structures include DBA, sole proprietorship, partnership, and limited partnership.
Find the Proper Location
Once you are clear about the type of business, it is high time to choose the location where you will settle it. Even though your company operates mostly online, you will still need to register the place or location where you will be filing taxes, government documents, and some others.
If you happen to be registering your business in Hong Kong, you can be more clear about this based on the example of the difference between Hong Kong company and business numbers, which represent two of the most important business parameters. You can also use the address to easily communicate with the suppliers or customers. Besides, government agencies do require possession of the business’s street address.
It is mandatory to come up with a unique name for your business. In the future, this name will become the ID of your brand, so, you should give it a thought. There are a couple of steps on how to register your name.
If you are registering your name as a separate entity or even LLC or corporation, you will need to register the name as an integral part of the registration process. These entities are registered through lawyers or through agencies. Also, you can operate through a name other than the legal name. The first step to this is to file the DBA which in some states should fill the business owners.
Registering With IRS
One of the crucial steps in your business registration is to register it with the IRS (Internal Revenue Service), where you will receive a federal EIN (Employer Identification Number). This is actually an essential social security number that is required for all businesses.
This number is sometimes referred to as the federal tax ID. An EIN is necessary for a variety of things, including the processes of employing workers, filing taxes, and opening bank accounts. With the IRS number, you will be able to report taxes such as income taxes, sales taxes, franchise taxes, and some additional business taxes.
Business Licence and Permits
All of this hassle was in order to get the necessary business permits and licenses that will enable you to operate your business without any problems. In addition, specific types of businesses require specific permits and licenses, and these may vary depending on the state and the industry you are working within.
It is a strategically smart move to obtain all the permits and licenses before you start your business so that you can avoid all future problems. If you want to know what special permits you will need, it would be best to contact the Business Administration. They will help you identify the type of industry and will lead you toward meeting all the requirements.
Register With the Local and State Agencies
Last but not least, you will need to register with some of the local and state agencies, such as the Secretary of State, Department of Revenue, Franchise Tax Board, and Better Business Bureau. All of these agencies have their own demands that must be followed and fulfilled. So, it is best to work with an attorney on this issue so that everything can be done perfectly and within time limits.
Registering your business is a whole process, full of details that must be carefully filled out so that you can avoid the stress of filling out documentation more than once. If you want this process to be handled painlessly, then consulting a professional seems like the best option.