Starting a business can be an exciting and rewarding venture, but it’s important to ensure that you go about it in the right way. While it is possible to conduct business as a sole proprietor without registering your business, there are many benefits to choosing to incorporate and register your business. Not only does this inspire more confidence in your customers, but it also offers protections that a sole proprietorship doesn’t provide.
If you’re still in the planning stage with your business, it’s essential to have a clear roadmap to guide you through the process. Shopify offers a helpful guide on how to start a business that can assist you in getting off the ground. Once you’re ready to take the next step, it’s crucial to learn how to register your business with state and local agencies.
1. Pick your business name:
Choosing a legal and available business name is the first step in the registration process. It’s important to select a name that is both on brand and unique. Conduct a search in your local jurisdiction’s business database to ensure that your chosen name is not already in use. Additionally, check for the availability of relevant social media handles and domain names to establish a strong online presence.
2. Choose a business structure to register:
Before you can register your business, you need to decide on a business structure. Popular options include limited liability company (LLC), corporation, general partnership, and limited liability partnership. Each structure has its own registration process, so it’s essential to understand the requirements for the structure you choose.
3. Register for an employer identification number (EIN):
Regardless of your business structure, obtaining an employer identification number (EIN) is crucial. This number protects your Social Security number and establishes your business as a separate legal entity. You can apply for an EIN on the IRS website.
4. Check requirements for each business location:
Each location has its own registration requirements, so it’s important to check with federal, state, and local government agencies to ensure that you meet all necessary criteria. This may include obtaining permits, licenses, articles of incorporation, and paying fees.
5. Register for taxes:
Most businesses are required to pay sales tax and other applicable taxes or fees. It’s essential to register for taxes in each state where you plan to sell your products. Some states do not collect sales tax, so be sure to check with each state directly to understand the process.
6. File for any trademarks:
If you have a unique brand or product name, logo, feature, or slogan, you may qualify for trademark protection. Registering your trademark ensures that your intellectual property is protected from infringement by other businesses.
As you navigate the process of registering your business, it’s important to stay organized, seek help from experts when needed, and stay up to date on registration requirements. By following these steps and tips, you can ensure that your business is properly registered and set up for success.
In conclusion, registering your business is a crucial step in establishing a legitimate and protected entity. By following the proper procedures and guidelines, you can ensure that your business is compliant with all legal requirements and positioned for growth. Shopify offers a range of tools and resources to help you manage every aspect of your business, making it easier to focus on what you do best.
