Learning how to start a business may be one of the toughest things for entrepreneurs to learn. Once they start on this path it’s can hard to go back, but it can also be really exciting and worthwhile for them. Learning how to register a business entity is a great start, and it will help you operate legally. Plus, it will mark your entry point in the industry.
Register the business name
When you begin starting a business, you will need to register a Doing Business As or Fictitious business name. This is very important because it makes it easier for the government or state to know the type of business that you have. The DBA registration doesn’t offer trademark protection, so you have to do that separately. What it does provide you with is a way to use the name you want for branding, without going through the process of setting up an incorporation. Without registering a DBA name, the business name will default to the legal owner’s name.
You don’t have to register a DBA name if you are a sole proprietor or if you choose to use your own name. Also, if you don’t want to have a business structure like a corporation or LLC, the business name will register automatically within the state. Again, as we mentioned above, if you want to trademark your business name, you will have to do that separately. To do that you need to apply for a trademark with the US Patent and Trademark Office.
State and local taxes
You will have to pay state and local taxes such as property tax, sales tax, income, payroll or self-employment taxes. When you register business entity you always need to focus on figuring out the local costs for your business entity, so always try to keep that in consideration. If you hire other people, you will also have to pay state unemployment taxes.
Aside from local taxes, you also have to pay federal taxes. What this means is that you need an Employer Identification Number, which you can get from the IRS. Your EIN can be used to open a bank account, apply for a business license, file tax returns and so on. You can get that online via the IRS EIN Assistant. While sole proprietorships don’t need an EIN, it’s still a good idea to get one if you want to stay away from personal liability.
Licenses and permits
Every industry requires different permits. So whenever you learn how to start a business you need to study the required permits in your area. Usually, there will be required federal and state-level permits. In order to make sure that your business activity is legal and regulated you will need permits, so it’s a good idea to talk with local company registrars to see the type of permits you may need for your business.
Hire a lawyer
Business law is very tricky, and there may be cases when you need legal assistance. That’s especially the case in the beginning when you apply for a business. At this time you will need to be dealing with legal reports, details, forms and more, which is why hiring a legal professional can be a very good idea.
As you can see, learning how to start a business does have its fair share of challenges. It’s never easy to create your own business, but it’s very satisfying and gratifying once you get the hang of it. With enough patience and focus, you’ll be able to register your business entity with great ease, and the results will be extraordinary!