Do you want to establish your own business in the USA but aren’t sure where to start?
You’ve come to the right place.
Let us simplify the processes for you.
In this post, we’ll list all the legal requirements for running your own business.
Contents
Registering Your Business Name
Once you have a concrete business idea, it’s time to find a unique name for your business that is also easy to remember. You may later want to scale your business, so keep that in mind while picking a name.
After deciding on a relevant name, be sure to do some research to ensure that nobody else has a similar name. Also, check if your chosen name is available on social media platforms and as a domain name. Maintaining an active online presence is important to attracting more customers and growing your business.
It is also recommended that you get a trademark after registering your business name. This way, other entrepreneurs won’t be able to copy it.
Requirements For Federal and State Filing
To get your business started, you need to form a legal entity. Only after it’s authorized can you start closing deals. For that, you need to decide which business structure best aligns with your operational needs, ownership arrangement, and other such factors.
Some entity types that you can choose from include:
- Limited Liability Company (LLC)
- Corporation
- Sole Proprietorship
- Partnership
- Non-Profit Organization
Each of these entity types has a different set of requirements when it comes to documentation. Based on your choice, get the required documents and get them filed with the Secretary of the State (wherever you’d like to conduct your business).
In addition to this, you’re required to get your own Employer Identification Number (EIN). For taxation purposes, it’s necessary for you to have an EIN. Only after getting it can you open a separate bank account for your business, hire employees, and pay taxes.
Additional Requirements
It’s also a good idea to create contracts and legal agreements for everyone that you will be involved with, including partners, employees, and contract-based workers. Setting clear expectations is important to avoid disputes in the future.
Keeping your personal finances and assets separate from those of your business is also a healthy practice. So, you should open a separate account for business transactions.
If your business is related to alcohol, medicines, or transportation, you may have to get special permits and licenses. Again, the requirements differ depending on the state that you are in. So, you should check with the local authorities which documents are required to set up your business.
Want more details about setting up your business?
Please check out this doc by GovDocFiling:
