Starting your business can be exciting. You are pumped to take your venture to success. But before you get on with it, you need to complete some regulatory requirements. The most important being legally registering your business.
Registering your business is an easy process but not a straightforward one. There are a number of things to keep in mind while registering your firm, such as,
- What type of business structure to choose (LLC, Corporation, Sole Proprietorship etc)
- Which state should you register the business in
- Fulfilling state business registration requirements
- Maintaining your business
Select the business structure:
The most important decision you would need to make is to select the structure for your business. Choosing a business structure depends on the nature of business, size, number of employees, funding source etc.
Broadly following types of business structures are available for registration:
- Limited Liability Company (LLC)
- Corporations (Professional/Profit/Non-Profit)
- Sole Proprietorship
Short Answer: LLC is the most popular business structure and most of the entrepreneurs prefer it.
The sole proprietorship offers no liability protection. While the corporation requires a lot of paperwork and is administratively challenging. We have shared the comparison between the above 3 business structure below:
Location of formation of Business
We recommend starting your business in the home state as its more easier to manage. But registering the business in other states can help in saving tax or lowering the regulatory cost to maintain the business. That being said, there is no such thing as the best state to start your business in. It totally depends on the business type and requirement. We recommend talking to an attorney or certified account for further clarification.
Each state has its own set of laws for registering the business. The requirements must be fulfilled to successfully register the business in the state.
Maintaining your business
Businesses must regularly file annual reports to maintain good standing with the state’s Secretary of State Department.
While it’s not difficult to form a business in USA, but each state has their own set of requirements. Choose the state which you have selected from the list below.
We have provided step by step instructions on how to register the business including forms to be filled, fees to be paid and things to keep in mind while registering.
Best of luck Starting Up!
Select the state in which you want to register your business:
Last Updated: 24/07/2018