Many budding entrepreneurs have the ideas and drive to start their own businesses, but many are unaware that their business also has to be registered as a legal entity. If you plan to start your own small business for the first time or starting another business venture, you must be aware of the steps that are necessary to properly register your business. The Small Business Administration offers five important steps for registering your small business at the local, state and federal agency level.
1. You will need to register your business as a legal entity. There are several different legal structure options available, each with different financial, legal and tax considerations to keep in mind. These options include a partnership, sole proprietor or limited liability company.
2. Next, you must choose a name to register your business under, if you choose not to use your own full name. The requirements for registering a fictitious or trade name vary from state to state, so you should check with your state government for further details.
3. You’ll need to obtain an Employer Identification Number or an Employer Tax ID from the Internal Revenue Service. An EIN is mandatory if your business has employees and is structured as a business partnership or a corporation, otherwise you can use your Social Security Number for business purposes. You can apply for an EIN at the IRS website.
4. You’ll also need to register your business with your state’s revenue office. Depending on state tax registration requirements, you may have to apply for a sales tax permit. This permit allows you to legally collect sales tax from your customers.
5. Last but not least, you will have to apply for the appropriate business licenses and permits. The exact licenses and permits you need depend on the type of business you plan to operate.
Registration can be a lengthy process, but it is a necessary step towards starting your small business. At UnsecuredBizLoan.com, we can help you get your business started on the right foot with SBA Loans of up to $35,000 for qualified businesses. We also provide unsecured business loans, cash advances and other financial tools to help your business succeed.
To apply for funding for your small business, use the form on the right to begin the application process.