Learn How to Register a Business in USA

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 fulfill 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
  • And, finally maintaining your business and making sure it remains compliant.

Select the business structure:

The most important decision you would need to make is to choose 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:

  1. Limited Liability Company (LLC)
  2. Corporations (Professional/Profit/Non-Profit)
  3. Sole Proprietorship

We have covered the difference between the above business structures in this post.

Short Answer: LLC is the most popular and preferred business structure (Read why).

The sole proprietorship offers no liability protection. While the corporation requires a lot of paperwork and is administratively challenging.

Below we’ve done a  side-by-side the comparison between the three business structure:

llc vs corporation vs sole proprietorship

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 sometimes 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.

State Laws

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

LLCs and Corporations must regularly file annual reports.  This is required to maintain good standing with the state’s Secretary of State Department.

Conclusion

While it’s not difficult to form a business in USA, but each state has their own set of requirements.

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: 30/11/2018