How to Register a Business

If you’re just starting out, registering your business is one of your first steps! We’ll walk you through the process so you don’t miss a thing. Whether you’re registering your business as a sole proprietorship or a different business structure, registering your new business is a simple process that will prevent complications down the road. Read on to learn how to register a business with state and local agencies.

Pick your business name

First step is to pick your business name. Brainstorm and research names you like - with the domain name and social media handles in mind. Once you’ve decided on at least a couple names you like, conduct a search in your local jurisdiction’s business database to see if any other businesses have registered under a similar name.

Choose a business structure to register

Your business structure impacts personal liability, how you’re taxed, and more. Before you can register your business, you need to choose your business structure and incorporate as such.

Keep in mind, you can change your business structure over time as your business grows. Popular business structures include:

• Sole proprietorship

• Partnership

• Corporation

• Limited liability company (LLC)

The main differences between a sole proprietorship and an LLC relate to protection and how your business is set up with the state. A sole proprietorship has no corporate business taxes, but it has no liability protection, is difficult to obtain business credit or get loans, and makes it harder to sell the business.

Register for an employer identification number (EIN)

Regardless of business structure, an employer identification number (tax ID number) is required. It protects your Social Security number (SSN) and establishes your business as a separate legal entity. This means your business can build credit and hire employees. You can apply for an EIN on the IRS website.

Note: If you're a sole proprietor (with no employees), the IRS doesn't require one. Instead, you can use your SSN and report your income and expenses on a Schedule C tax form. However, many sole proprietors still elect to use an EIN because it reduces the chances of identity theft and banks often require one to open a business account.

Register for sales tax

In most places, businesses have to pay sales tax - essentially you act as the middleman between the customer and government by receiving sales tax that you’ll then hand over to the government.

Because sales tax varies by state, you’ll need to register in each state where you plan to sell. You’ll also want to keep track of when you hit nexus in other states.

Some states don’t collect sales tax, which means store owners do not have to register a business for tax purposes. These states include:

• Alaska

• Delaware

• Montana

• New Hampshire

• Oregon

If you need to get sales tax and nexus off your plate, HarQuin can take care of all your sales tax needs. Just fill out the sales tax form to get started.

File for any trademarks

It’s not required, but if you’re launching a brand or product with a unique name, logo, feature, or slogan, you may qualify for trademark protection. A trademark helps consumers recognize your brand or products.

We hope this gets you off on the right foot as you start your business. We love supporting small businesses. If you’re ready to outsource to a finance team that feels like family, we can be here for you from the start and grow with you for years to come. Get a free estimate.