Registering a business is the first real step towards full business incorporation and ownership. The process of business registration is also called business incorporation, and it turns your business idea or business into its legal entity. Therefore, your business will function as a living thing, capable of transacting with people and other business entities, lodging and facing legal suits, and giving ‘birth’ to other small companies in the form of subsidiaries. The process of incorporation is, therefore, a legal process that must have the following steps:
Name Registration
You must first reserve your name, and after reservation, proceed to register it as your business name. A unique business name identifies your company names as exclusively yours.
Incorporate your business under LLC or a C corporation
You can either incorporate your business as a limited liability company or a pure C Corporation. In both formats, you, as the director(s), are separate from the company’s legal liabilities. It is vital to have a registered attorney do this step for you because any small mistake may jeopardize your business legal structure and protection. Some law firms such as STO Attorneys offer advice on legal structures for companies dealing with emerging technologies.
Get a Federal Tax ID (EIN)
Any resident in the United States who has a Social Security Number must also register a tax id for their business. This ID will serve as the company’s social security number.
Obtain Necessary Business Permits and Licenses
Depending on the business you want to engage in, you must get the required licenses or permits. These permits enable your local government to know your business, raise revenue, and to serve you better.
It is vital to seek legal advice before registering your business because different states have different requirements and regulations regarding how businesses should operate within their jurisdiction. These differences affect how your business will run in one State as compared to another state. For example, tech companies register as Delaware C corporations, meaning they register in the state of Delaware even if their headquarters are elsewhere. The reasoning behind this is because the regulations in Delaware are investor-friendly and give start-ups and secure framework to protect their Intellectual Property.
In conclusion, following the above steps will protect your business from unforeseen complexities that may spell doom for your business.
