Small Business Registration Process
Registering as a small business comes with benefits. Permits depend on your region and business type. Your small business tax obligations depend on location. A legal compliance checklist ensures a business meets regulations.
When starting a business, you must register a name and choose your structure. You then form your entity with the state. Basic legal requirements depend on your structure and location.
- As an independent contractor, you need licenses for your business. This involves getting approval at multiple levels. Required insurance includes several types.
Legal Considerations for Small Businesses
The cheapest structure is a sole proprietorship since there are no annual fees. But an LLC offers some protection of personal assets. Most businesses need some type of permit to operate legally. As a small business owner, it’s your responsibility to research and follow applicable laws.
The steps to register a business depend on your structure, location, and industry. You can find out if your business needs an EIN using an IRS survey.
- You don’t legally have to register a sole proprietorship under your own name. But doing so doesn’t provide legal protection from debt or lawsuits. You also can’t legally use any business name besides your own until registered locally and federally.
Compliance and Licensing Requirements
Some regulated businesses require a registered entity to operate. Registration costs vary by state and structure. Records needed depend on structure and location.
- Your industry may require a trade license to operate locally. Food businesses must register at the federal level with the USDA. At state and local levels, check with your department of state or city/county registrar.