What is company registration?

Registering A Company means you have to take the important steps to create an entity in your country and you also obtain the permits and licenses for operating that business. Each step including in this process is crucial for you to follow. You have to consider all of your options, complete and file the forms. You will then pay the filing and registration fee in this regard.  Here is the list of those steps that you have to follow:

• Choose and reserve the name

You have to pick a name after searching it in the state’s database to know if it is available or in use by someone else. This is the most important step and it will take some time for selecting the name and then finding out about its availability. If the name is not available, you will have other options to choose. If it is open, then reserve it for your company. You can choose corporation, limited, or any other name according to your needs.

• Create a business entity

A lawyer will give you advice if you should go for a limited partnership, general partnership, or LLC Corporation. You will also have to consider the activities of your company, the total number of shareholders and owners, and whether you will pay tax as a corporation or as an individual. Decide if you want to form a company in a state where it is physically located or you want to register it in another state. If you choose another sate then you will have to qualify for operating there by paying the filing and company registration fees.

• Acquire a Federal EIN

It is necessary to give a simple form with the IRS for obtaining the federal employer identification number for starting your business. It is equivalent of social security number that is used for identifying your company for federal tax purposes. 

• Know about the state tax registration

If you will collect sales tax from your buyers, you will need to get the tax registration from the state where you will do the business and where you will employees will reside. You also need to know if the tax identification number is necessary for your state or not. The business structure, activities, and getting the owners are very easy and simple but it is better to take the advice from an experienced accountant and lawyer while going to know about how to register a company.