Who To Consult About Registering A Business Name

Technically speaking, yous might be able to make your first auction without officially registering your business organisation. But incorporating and registering your business makes it official in the optics of the government and of your customers, and it can offer protections that a sole proprietorship doesn't.

Though it might sound ho-hum and daunting, later on you starting time your business, registering your business is more straightforward than you may think.

How to register a business organization

Registering your business is a fairly straightforward procedure, merely it's important to do it right to avoid complications down the road.

i. Pick your business organisation name

It probably goes without saying that naming your online store is super important. And choosing 1 that's both on make and available can be hard. When brainstorming, it's best to bandage a wide net to kickoff see what sticks and and so hone in on your summit ideas(try ourbusiness name generator).

Once you've nailed down a few favorites, you'll need to check if they're available. Acquit a search within your local jurisdiction's business database to see if any other businesses have registered under a like proper name.

Other important considerations when choosing your business proper name include:

Social media. Are relevant social media handles available, or is someone else already using your chosen proper name?
Domain proper name. Conduct a quick domain proper name search to run across if your branded URL is available.

2. Register your business organization

The step of really registering your business involves ii cardinal components:

Choosing your business structure and incorporating equally such
Getting your employer identification number (EIN)

Each business structure requires a different process for registration. Sole proprietors, for instance, don't need to practise anything. Corporations, on the other hand, need to file articles of incorporation or similar corporate documents.

Regardless of business structure, an EIN is critical. It protects your Social Security number (SSN) and too gives your business organization its own identity. This identity means your business concern can build credit.

See our state specific guides forCalifornia LLC, Texas LLC and Florida LLC.

three. Check with each entity

But like each business blazon has its own registration process and requirements, each physical location has its own parameters besides. It's important to check with federal, country, and local jurisdictions to notice out what yous need to legally annals your concern.

Additional requirements may include permits, licenses, articles of incorporation, forms, and fees, amongst other things.

four. Register for taxes

In nearly places, businesses accept to pay sales tax and potentially other applicable taxes or fees. Because sales tax varies by country, you'll need to register in each state where you plan to sell.

Some states don't collect sales tax, and so there's too no registration:

Alaska
Delaware
Montana
New Hampshire
Oregon

For the remaining states, check with them directly to notice out what the process entails.

Get started: Shopify uses default tax settings for your online store, only yous can customize your sales tax settings in your admin dashboard.

5. File for whatever trademarks

A trademark is "anything that's considered a source identifier," and your brand can qualify as such. You can exercise this unofficially—merely start doing business under your branded name and/or with your logo then you can establish a reputation.

Or you lot can take an official approach, enlisting a trademark chaser who can aid you lot secure your proper name. If yous go the official route, you lot'll want to brand sure you patent your concern proper name at both the federal and state levels.

Tips for registering your business

While registering your business is fairly straightforward, there are a few things to continue in listen to make the process smoother.

Go organized

Earlier you lot start any applications, create a list of what you need. This will include things like your basic personal and business information, EIN, forms, licenses, permits, fees, etc. Accept this information handy so you tin can wing through the application procedure.

Hire help

For more complex business organization registration, such as heavily regulated industries, it may be a practiced thought to enlist the help of an proficient. Qualified tax professionals and business attorneys tin guide you through the procedure, answering questions along the way and even taking intendance of some of the steps for yous. Shopify Experts has a whole directory of sales revenue enhancement pros who can provide assistance with US country sales tax and liability, for example.

Stay up-to-date

Information technology'due south always all-time to check directly with official location- and industry-specific sources for the latest data regarding business registration requirements. Brand it a habit to cheque on your licenses, permits, and registrations each year—for accountability and to help yous recollect, you might do it at tax time. Prepare up agenda reminders for any expirations or renewals also.

Gear up your concern bank accounts

While not a required step for concern registration, information technology's appropriate to set up dedicated business organization bank accounts. Separating your business and personal bank accounts will brand your life easier and protect your personal assets. Information technology simplifies bookkeeping, tax time, and audits; builds credit history for your business organisation; and makes things easier to organize overall.

To fix upward your business depository financial institution accounts, yous'll need to first choose a depository financial institution that suits your needs. The process to open the depository financial institution accounts and whatever lines of credit is much the aforementioned as information technology is for personal banking—y'all simply need your taxpayer identification number (EIN) and other basic business data when you fill out the necessary awarding(s). Some banks require you exercise this in person while others facilitate the process online.

Set upwards payroll

Once you've hired employees, you'll likewise need to set up your payroll process. When you do payroll, yous need to properly withhold taxes and maintain clear records in the process. Luckily, many business bookkeeping software take payroll functionality congenital in, making this process a lot easier. Just it still requires you set it up—and you lot take to ensure the sales tax is properly configured. You may also need to acquire an accelerate or loan to ensure employees are paid a proper bacon. Check with your local taxation role or rent a vetted adept for guidance.

Kickstart your business organisation with Shopify

Shopify has many integrations with business accounting software to make it easier to manage every aspect of your business from a centralized location. With thousands of third-party apps and integrations to choose from, you lot tin can build a virtual business organisation command center.

Business concern registration FAQs

Can y'all run a business without registering information technology?

Yes, y'all tin run a business without registering it. At that place is no formal procedure required earlier you lot make your first sale. Over fourth dimension and as your business grows, you'll want to register and incorporate.

How much does it cost to register a concern?

It'south costless to unofficially register a business. There are no associated costs to beginning selling, however, you may have to pay sales tax on each sale.

DISCLAIMER: These guides are for advisory purposes only and exercise non establish professional legal or tax advice. Delight consult independent legal advice and your ain taxation counselor for data specific to your country and circumstances. Shopify is non liable to you in any way for your use or reliance on these guides.