Why Do You Need Registering Your Business?
There are two main determinants of how you will need to register your business: your location and business structure. The registration processes depend on the type of your business entity and what state your business is operating in. Registering your business can refer to register your business name, trademarks, register to pay taxes, or register for licenses or permits.
Does Your Business Need to Register with the Federal Government?
Except for getting an EIN, most businesses do not need to register with the federal government to become a legal entity. In some cases, small businesses register with the federal government for tax-exempt status, trademark protection, and IPRs. You could miss out on personal liability protection, legal benefits, and tax benefits if you do not register your business.
The legal structure of your company and location directly affect the registration process of your company. In our previous blogs, we explained the legal structures of businesses. The county and state of your business may differ in tax procedures. Your business structure will affect the entire registration process. If your business is regulated by federal institutions and regulations, you need federal licenses and permits. You can find detailed information about federal licenses and permits from expert consultancy firms or business administrations.
Decide Your Business Structure
After deciding to start a business, it is time to register it to obey the local and federal rules. Your business structure affects the way you file for taxes, how much your personal assets are at risk if your business fails, and legal obligations. Your business structure affects nearly all the process of registering your business. Each state imposes its own laws and registration process for sole proprietors, LLCs, partnerships, and corporations. As an example, you must record as a new business entity with the State of New Jersey by filing a certificate of business formation with the Division of Revenue if your business is going to be a legal entity, such as a Corporation, Limited Liability Company (LLC), or Limited Liability Partnership (LLP). You do not need to complete this step if your business is a Sole Proprietorships and General Partnerships.
Choose A Location
Your business location is one of the two main factors that affect registering your business.
It is important for tax filings, receiving important documents from government agencies, your business bank account, and other legal obligations.
You are considered to be operating in a state or county if:
- Any of your employees work in the state or county,
- You have frequent face-to-face meetings with customers in the state or county,
- Your business has a physical presence in the state or county,
- A significant portion of your company's revenue comes from the state or county.
Local Tax and Regulation Concerns
After deciding your business location, owners should contact the municipality and county where the business is to be located to understand if the company needs to comply with:
- Local zoning ordinances,
- Local mercantile licenses,
- Municipal or local tax obligations,
- Local regulations,
- Local permits,
- Other necessary requirements to register a business.
Local licenses and permits you need from the state, county, or municipality will depend on your business location and business activities. Local authorities tend to regulate a broader range of activities than the federal government. Business activities that are commonly regulated locally include construction, dry cleaning, farming, plumbing, retail, vending machines, and restaurants. Local regulations can impose financial and red tape burden upon recording your business.
Registering Your Business Name
If you are starting a sole proprietorship or a partnership operating under your own name, you do not need to register a business name. A part of registering your business, the business name registration is usually part of the process of registering separate entities like corporations and LLCs. A DBA registration is mandatory in some states or counties. If registration is mandatory, the registration fee must be paid with the registration form. If your business’ name is already in use by another business in the state, you must adopt a ‘Doing Business As’ (dba) name within the state. You must fill out the business registration form, write your business’ full legal name, followed by the letters ‘dba,’ followed by the intended dba name.
Getting an Employer Identification Number (EIN) and hiring a Registered Agent are also parts of registering your business. We explained these topics in detail in our previous blogs.
As an example, the main elements required in the Application for Registration as a Registered Limited Liability Partnership for North Carolina are:
- Name of the LLP,
- Registered Agent and Registered Agent Office,
- Principal Office,
- Fiscal Year End Date,
- Optional E-Mail Address,
- Effective Date,
- Execution or signing the document.
Registering Your Business: Trademarks
Trademark is the instrument that prevents the products or services that you actively use in commercial areas or intent to use in a short time by being used by others and making unfair profits. This can sometimes be name, logo, design, sometimes composite. It is even possible to put some special sounds, odors, and shapes under Trademark protection. By registering your trademark, you solve possible conflicts, and you will be in an advantageous position. The registration process can take an average of 6 months. More detailed information on the subject can be found on the official website of the USPTO, the official authority in the USA. If one of the trademarks, patents, and intellectual property rights is part of your job, you must register it. Trademarks if any, affect your process of registering your business. Getting help from expert law firms saves you time and money.
Open A U.S. Bank Account Now and Start Your Business
Personal bank accounts and business accounts must be separate from a successful business. Separating business and personal accounts is crucial to keeping track of your business’ finances, however small your business is. Having an accurate accounting of your business is indispensable for maintaining your company’s limited liability status. Failure to do so may lead to your personal assets being at risk in the event of a legal dispute. You can click the following article to find more detailed information about it: opening a bank account in the USA.
In summary,
Registering your business can refer to register a business name, trademarks, register to pay taxes, or register for licenses or permits. Your location and business structure are two main factors how you will need to register your business. The registration processes depend on the type of your business entity and what state your business is operating in. Small businesses register with the federal government for tax-exempt status, trademark protection, and IPRs in some cases.
If your business is regulated by federal institutions and regulations, you need federal licenses and permits. You do not need to complete this step if your business is a Sole Proprietorships and General Partnerships. Getting an Employer Identification Number (EIN) and hiring a Registered Agent are also parts of registering your business. Trademarks can be a crucial part of your business and must be protected. By registering your trademark, you solve possible conflicts, and you will be in an advantageous position. Having a business account separate from personal bank accounts contributes to your business success.
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Onal Gallant and Partners PC is a law office specializing in Real Estate Law, Intellectual Property, Corporate and Business Law, Immigration Law, and the US Visa Processes. We deliver reliable advice in a large variety of subjects ranging from forming a corporation, and buying a house in the US to trademark registration and Green Card applications (e.g., EB3 Visa or DV Lottery). With exceptional knowledge and insight into immigration law, our experienced lawyers at Onal Gallant and Partners PC are ready to help and respond to all of your inquiries.
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