How to Register a Business in the US

Becoming your boss and starting a business undoubtedly comes with a lot of benefits. For one, being self-employed gives you room to choose your working hours. Also, owning your business means that you can control the type of environment you work in.

However, let’s not forget that starting a business also comes with plenty of responsibilities. One of the most crucial steps you’ll need to take care of is registering your business. Although registering your business is not a must, there are plenty of benefits you’ll enjoy if you do so. 

This post serves as a handy guide on everything you need to know about how to register your business in the US. Let’s get into it!

Step-by-step Guide on How to Register a Business in the US

The following part of this post will give a step-by-step outline of what you need to know about registering your business in the US. Keep reading. 

Choose a Business Structure

The first step in registering your business in the United States is choosing a business structure. The best choice for your business structure will depend on the type of business you’re starting and whether you have long-term plans to expand. Keep in mind that the type of business structure you choose will affect your business operations, taxes, and business risks. So, this step is an essential step before setting up your business plan. 

Here’s a brief overview of some of the most popular business structures:

Sole-Proprietorship

In many countries, this is the default business structure. A sole proprietorship is a form of unregistered business in which you run your business operations by yourself. In a sole proprietorship, you bear all the costs associated with assets, liabilities, and risks. 

Partnership

A partnership is any form of business that’s owned by two or more people. In this case, the partners are fully responsible for the business’ operations and they’re liable for covering debts and taxes as well as associated risks. 

Limited Liability Corporation

Popularly known as LLC, the Limited Liability Company creates a legal separation between the business owners and the business itself. This means that your assets can’t be used to satisfy business liabilities. 

C Corporation

A C Corporation is a separate legal entity from the owners (shareholders). This implies that the business can be taxed, make profits, or be held legally liable for its actions separate from its shareholders. It is for this reason that this structure offers the most protection for an owner’s assets. 

Sometimes, knowing which business structure suits your business plan can be a walk in the park. At other times, the decision is not clear. That’s why it’s important to seek out input from trusted experts or co-founders. Once you have decided the best choice of business structure for your business, you can move on to the next step.

Find a Suitable Location

When choosing a business location, it doesn’t mean that your business has to have a brick-and-mortar location. As far as registering your business goes, it simply means a dedicated address that you use for tax filings and your business bank account. 

Choose and Register your Business Name

The next step is to register your business name. Remember that your business name will impact your brand identity and create the first impression with customers. So, you should pick a name that reflects your business and is easy to remember.

The rules for registering a business name vary in different states so you’ll need to check the requirements of the state you want to register in. However, there are three main routes you can follow to register your business— Entity name, Trademark, and Doing Business As (DBA). Each of these routes is specific to your entity’s needs and circumstances. 

Register With the IRS

Next, you need to obtain an Employer Identification Number (EIN) which involves registering with the IRS. An EIN is a unique nine-digit number assigned by the IRS to help businesses establish their legal identities. You’ll need an EIN for tax and bank purposes, and it can also protect your business from business debts and liabilities. 

You can apply for an EIN online through the IRS website by providing some basic information about your business. The information includes your business’s legal name, address, and business structure. Once you have completed the application, you’ll receive your EIN immediately. Ensure that you keep your EIN safe because you’ll need it for business processes like opening a bank account or filing tax returns. 

Apply for Business Licenses 

You may need to apply for various permits and licenses to operate your business legally. In the US, the process of identifying and applying for a business license might look slightly different based on location. However, it’s mostly similar throughout the country. 

Let’s take a look at how to go about this process:

• Identify the necessary licenses 
• Check with the issuing agency
• Gather the necessary documentation 
• Complete the application 
• Pay the application fee
• Wait for approval 
• Display your license 

Register With State Agencies

Once you’ve completed all the federal registrations, you may need to register your business with one or more local/state agencies. Registering with a state agency typically entails the following:

• Registering your business identity
• Filing for taxes
• Obtaining any necessary insurance
• Complying with other state requirements

How Changera Can Help

We are aware of the constant problems that international business owners face, especially when it comes to payment processing. That’s why it’s our mission to ensure that these problems have permanent solutions. Thankfully, we’ve been doing a fantastic job so far. 

Here’s a summary of how Changera Business is helping businesses all over the world. With Changera Business, you can:

• Build a global team of experts that you can pay for seamlessly.
• Pay remote workers from everywhere at any time.
• Send and receive payments all over the world using your Changera Business account.
• Pay statutory disbursements.

These are only a few of the benefits you’ll enjoy when you sign up for Changera Business. 

What else are you waiting for? Open a Changera business account today to learn more!