If you want to start your own business but aren’t sure of the procedures involved, you aren’t alone. Many new entrepreneurs find it confusing to figure out what they need to do.
Are you in the same boat?
In this post, let’s simplify the procedures you need to follow to set up your business in the US.
Step 1: Choose a Unique Name and Register It
Give your business a fresh identity by picking a unique name. Then, get it registered with the office of the Secretary of the State. It is also advisable to get a trademark to avoid others from copying your business name.
Step 2: Pick a Legal Entity Type
LLC, Partnership, Corporation, S-Corp or any other type of legal entity — which one is the most suitable for your business?
Invest some time into thoroughly researching each business type so that you can choose the best type for your business. Keep in mind that this decision will affect how you pay taxes, divide profits, and other important factors.
Step 3: Complete State Filing Formalities
You need to finish state filing to register your business. Only after this step is completed will you be able to formally establish your business. The documents and the process required for state filing will depend on the type of legal entity you choose for your business.
Step 4: Apply For an EIN
All businesses require an Employer Identification Number (EIN) so that the government authorities can easily identify them for taxation. An EIN is also known as a tax ID number. which is a unique number for all Americans Living in the UK. Without it, you will not be able to hire business employees, open your bank account, or report income.
Step 5: Create Contracts and Agreements
Contracts and agreements are necessary to avoid any confusion or disputes arising later. Non-disclosure agreements, employment contracts, operating agreements, and corporate bylaws are some of the important documents that you should prepare in advance.
Step 6: Open a Bank Account
Your business needs a separate bank account for efficient financial management. Go prepared and bring your state formation documents, EIN, business license, and other important documents to open a new account.
Want more details? Check out this detailed infographic created by GovDocFiling.