The following steps provide information on bureaucratic and legal obstacles to register a new business in the US with up to 50 employees. To start-up capital of 10 times the economy’s per-capita gross national income (GNI).
Registration of New Business
1. Ascertain the legal configuration of your Company:
The right legal configuration depends on a number of things, including your new company’s vulnerability to lawsuits and financing needs. The legal structure chosen by you will determine additional registration requirements with your state or local government. It also depends on various considerations that need to be taken into account which changes from state to state.
- A corporation
- A non-profit organization
- A limited liability company or partnership
It is necessary that sole proprietors use their own name, which is referred to as you Doing Business As (DBA) name. You can initially register as a sole proprietorship, and as your business expands change your business to an LLC.
2. Register your Company name:
DBA, Assumed Name, and Fictitious Name is referenced when describing the procedure of registering a legal name for your new company. By default it is the name of the person or organization that owns a company. The legal name will be your full name if you are the exclusive proprietor of your business. However, if it is a partnership, the legal name is the name outlined in your partnership agreement. The legal name is the one that was registered for LLCs. Your new business documents include your application form for employer tax identifications, licenses, and permits. If you decide to set up a shop, then you might need to file an “assumed name” registration form.
- The legal name of the business is your full name if you are the sole proprietor
- The legal name is the last names of the partners if your business is a partnership
- The business legal name is the one that was given for LLCs.
Your legal business name is needed for your application for employer tax IDs, licenses, and permits. An assumed name formally registered the name of your company.
3. Acquire your federal tax ID:
Employers with employees, business partnerships, and corporations are required to acquire an Employer Identification Number (EIN). This is issued from the US Internal Revenue Service (Phone: 1-800-829-4933), which is needed to distinguish a business entity.
4. Register with your state revenue agency:
If you decide to sell products, you will probably be required to acquire a Sales Tax Permit. This can be obtained from your state or local government.
Tax Permit
In the majority of states, business owners need to apply for the relevant tax permits. It is a requirement to collect sales tax from customers.
Income Taxes
Almost all states place a levy on corporate income tax. Your tax obligation is an LLC that gets taxed independently from the owners.
Employment Taxes
Company owners with employees are also accountable for paying the appropriate taxes, as well as federal employment taxes. Thus includes state worker’s compensation insurance and unemployment insurance taxes. The states listed below require paying for temporary disability insurance:
- California
- Hawaii
- New Jersey
- New York
- Rhode Island
- Puerto Rico
5. Acquire licenses and permits:
You may be required to be licensed at the federal, state, or local level, depending on your business. You might need an environmental permit. It’s vitally important to adhere to the regulations for licensing and permitting. If not, it can result in costly fines placing your company at serious risk.
