Starting a business is an exciting, independent venture with many decisions to make. One important choice is the type of business structure to form. Once the business is established, it’s crucial to register it with state and county agencies. Doing so will ensure the business is properly reported taxes, has access to government benefits and services, and complies with legal standards for bookkeeping and accounting.
There are several different types of business structures, including a sole proprietorship, partnership, limited liability corporation (LLC), S-corporation, and nonprofit organization. Each has its own benefits and drawbacks, and a lawyer or tax advisor can help you decide which is right for you.
The steps for registering your business will vary depending on the structure you choose and the state in which you’re operating. For example, if you form an LLC, you will need to file articles of incorporation and create bylaws describing how the company will be run. Additionally, you’ll need to elect directors who oversee management decisions on behalf of shareholders. The LLC structure also offers limited liability protection for owners or members, meaning their personal assets are shielded from the debts of the company.
You’ll need to obtain any necessary licenses or permits as well, and these will depend on your industry and state regulations. For example, if you sell goods, you may need to register for a sales tax permit. If you import or export goods, you’ll likely need to register for a customs duty. business registration