| Register Your Business |
| In setting up a business, one of the most important decisions you have to make is to choose the type of business structure you will have such as Sole Proprietorship, Partnership, Limited Liability Company or Corporation. The type of business structure is an important determinant on how your business will operate and for taxation purposes. If you decided on a Sole Proprietorship or Partnership structure type of business, you have to register it by filing a form called DBA (Doing Business As) or FBN (Fictitious Business Name). This is dependent on the state where the business is being formed where you have to apply for the necessary licenses and permits as may be required. |
| If your business is a corporation or Limited Liability Company, you have to register it with the Secretary of State as such and a corresponding number will be given when the formation documents are filed. This number is most likely called the Secretary of State File Number. If you have employees, you also need to get a number from your state's Employment Development Department to allow you to deal with payroll issues. An Employer ID Number (EIN), also known as a federal tax identification number is used as an identification number for other purposes, including filing state tax returns. This is an IRS requirement in order to operate. Applying for an EIN for your business is very easy by filling in IRS Form SS-4. |
| You can apply for an EIN online, by telephone, by fax, or by mail. If you submit your application online, you will receive your EIN at the same time and use it immediately. Information regarding the types of business licenses you need to operate may be obtained from the state, city, county, or town wherein you plan to conduct business. The license requirements depend on the types of businesses you want to operate. For a comprehensive list of these requirements, you can visit the United States Small Business Administration (SBA) website at http://www.sba.gov, which will provide you a list of where to obtain necessary information about business licenses for your state. Additional information is also available from your city and county's web sites. Some of the above permits and licenses are necessary in opening a business bank account. Make sure that you comply with all requirements and provide all necessary documents in order to register and obtain your business license or a home occupation permit before you start business operations. |