What Is The Process For Registering A Business?

In setting up a business, one of the most critical decisions you have to make is to choose the type of business structure you will have such as Sole Proprietorship, Partnership, Limited Liability Company, or Corporation. The type of business structure is an important determinant of how your business will operate for taxation purposes. How to Register Your Business? If you operate as a sole proprietor or partnership, you will need to register the business by filing a form called DBA or FBN (Fictitious Business Name). This is dependent on the state where the business is being formed where you have to apply for the necessary licenses and permits as may be required. If your business is a corporation or Limited Liability Company, you have to register it with the Secretary of State as such and a corresponding number will be given when the formation documents are filed. This number is most likely called the Secretary of State File Number.

If you have employees, you also need to get a number from your state's Employment Development Department to allow you to deal with payroll issues. An Employer ID Number (EIN), also known as a federal tax identification number is used as an identification number for other purposes, including filing state tax returns. This is a legal requirement in order to operate.

Applying for an EIN for your business is very easy by filling in IRS Form SS-4. You can apply for an EIN online, by telephone, by fax, or by mail. If you submit your application online, you will receive your EIN at the same time and use it immediately.

Information regarding the types of business licenses you need to operate may be obtained from the state, city, county, or town where you plan to conduct business. The license requirements depend on the type of business you want to operate. For a comprehensive list of these requirements, you can visit the United States Small Business Administration (SBA) website at http://www.sba.gov, which will provide you with a list of where to obtain necessary information about business licenses for your state. Additional information is also available on your city and county's websites.

Following is a simple checklist you may follow for starting and Registering Your Business:

1. Business License - all businesses need a license

2. DBA/Fictitious Business Name - businesses using a name other than the owner's name have to register a DBA/Fictitious Business Name Certificate. If your business is an LLC or corporation, a DBA is not required.

3. State Tax ID/Employer ID Number EIN - businesses that have employees have to get an EIN and a Federal Tax ID Number (FEIN).

4. Seller's Permit/Reseller's License/Tax ID - wholesalers or retailers of taxable goods and services need a Wholesale License, Seller's Permit, or Resale License.

5. Federal Tax ID Employer Identification Number FEIN - corporations or LLCs, employers, and, in some states, those businesses that are also getting a Seller's Permit are required to obtain a Federal Tax ID Number (FEIN) and a Business License.

6. Corporation or Limited Liability Company - articles of incorporation or articles of agreement.

7. Partnership/LLC Agreement - Operating Agreement.

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