08 Aug How to Register a Business the Right Way
There are about 32.5 million small businesses in the U.S. alone, making up 99.9% of all American businesses. If that doesn’t tell you it’s a good time to build your brand, then I don’t know what will!
But starting a business isn’t easy. First, owners tend to forget a crucial step, and that’s registering their business. Not all companies are required to register a business, but it’s in your best interest to do so. You will reap the benefits faster than you think.
Are you a business owner wondering how you can register a business structure efficiently? Do you own a small brand and wonder why you should become a registered company? All your questions will be answered in this short guide to getting your business official. Continue reading so you can know how to get your company up and running.
Why Should I Register My Business?
The benefits of registering your business are endless, first starting with the fact you’re officially a documented company by your state. You aren’t “starting” a business; you have one. For owners to cherish authenticity, this can be a huge win.
Otherwise, listing your business offers advantages that would be difficult to do without registration. For example, a registered business will be able to establish business bank accounts, apply for small business loans, and hire full-time employees.
If you’re wanting your business to take off as soon as possible, consider registering so you can have more opportunities to grow.
What Happens if I Don’t Register My Business?
If you start a business and decide not to register it, you are considered a sole proprietor. This means that everything regarding your brand has your name on it. This includes your full legal name, your social security number, and other personal information. This can bring your brand’s authenticity down.
Your business lacks credibility if you aren’t able to solidify a brand. As a sole proprietor, your name is your brand. However, when you register a business, you are fully developing a product or service that people will grow to know.
Nonetheless, as long as you have proper licensure, deciding to not register your business is legal. You still have to register your business for taxes, however. This depends on your state’s regulations on small businesses.
How to Register a Business in 6 Steps
It’s time you take the ‘sole proprietorship’ name off and take on the title as an official business owner. Registering your business can be a tedious task. Luckily, modern technology has made it easier by having online forms. Follow these steps to get your business registered as soon as possible!
1. What’s the Name?
You can’t have an official business if you don’t have an official name. Choose a name that will represent your product or services well. If you already have this step covered, then take extra precautions by making sure your business name is available and not state-restricted.
First impressions are key to your brand, so choose a business name that catches the eye. Don’t be too simple, but don’t be too difficult either. Choose a place in the middle and get started with your registering process!
2. Pick a Business Structure
If you’re unregistered, your business entity is considered a sole proprietorship. There are three other business entities you can sign under:
- LLC (Limited Liability Company)
Most business owners will choose to be a corporation or a partnership. An LLC is commonly chosen because it gives personal liability protection. Choosing the proper business entity is important because this will determine how you will file taxes.
3. Choose a Business Location
Your business does not have to be confined to a specific location, but you need to identify the state of domicile for taxes and government agencies. Figure out exactly where you want your business to be registered so you can gain all the benefits!
4. Register for Taxes and Local Agencies
Now it’s time for the legal stuff, which includes registering with the IRS and state and local agencies. If your business makes significant sales, you must get an Employer Identification Number and register for taxes.
The state you are conducting business in will need you to officially register your name in their system. This can be done online or through paper. Regardless, you must let the state know you are doing business to avoid any complications.
5. Get Your License!
Not only does having a business license increase your credibility but it gives you eligibility for other business essentials, such as a small business loan. You must get your business license so you can always state yourself as a credible small business owner.
6. Research for a Certified Public Accountant
Starting a business comes with heavy financial responsibility. While registering your business, you’ll find yourself stressed about how much money you’re spending on establishing your brand.
Researching for a certified public accountant to assist with bookkeeping, business consulting, and more will help you in endless ways. Dempsey Vantrease & Follis PLLC (DVF) is an accounting firm made for these tasks! By offering high-quality accounting and business services, we’ve been able to turn small businesses into something much larger.
Starting a business is a costly task. As you register your business, the last thing you want to be thinking about is how to manage your money. That’s where a CPA can help! Get some extra assistance from us, and we’ll maximize your financial resources with our team.
Start Your Business the Right Way!
To register a business means to be official; it’s a tedious process, but it comes with so many benefits that your hard work will pay off. Establish your business structure and watch your name grow.
Leave all the finances to an accountant from DVF’s firm so you can live in the now.
Dempsey Vantrease & Follis PLLC has four decades of experience managing other small businesses such as yours. Give us a call and we can start managing your finances as quickly as today!