Business Formation in the U.S.

This article provides information on the initial steps that are required to register your business in the United States. The steps include registration with a state, obtaining an EIN, opening a business bank account, obtaining required licenses and permits, and setting up accounting and tax advice.

The first thing you need to choose a business name. Select a unique name for your business that complies with the state's guidelines for naming conventions. You can usually search the state's business name database to check if your desired name is available.

Next, choose a business structure. Determine the legal structure for your business, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Each structure has different requirements and implications for taxes, liability, and management.

Then, register with the Secretary of State. Contact the Secretary of State's office in the state where you plan to conduct business. You may need to complete an application or file specific forms to register your business. The exact process and required documents vary from state to state.

Obtain an Employer Identification Number (EIN). If your business will have employees or you plan to form a partnership or corporation, you'll need to obtain an EIN from the Internal Revenue Service (IRS). You can apply for an EIN online through the IRS website.

Obtain necessary licenses and permits. Research and determine the licenses and permits required for your specific business activities. This can include general business licenses, professional licenses, health permits, zoning permits, and more. Check with local and state agencies to identify the permits you need and their application processes.

Opening a business bank account is a must. This will help to separate the business-related cash flow from your personal account. And allows to easily track business transactions.

Comply with additional requirements for tax and accounting rules and regulations. I strongly recommend setting up a good accounting system at the very beginning. There are several accounting software that you can use. They are not expensive and will help you to organize your records. We are QuickBooks ProAdvisor and can help you to organize your accounting transactions in QuickBooks.

In conclusion, I wanted to highlight the great thing for your business success is to start the right way at the very inception. We can help with your business formation, and right entity classification, help to register your business, and obtain EIN. Assist with accounting and payroll setup. I can help with good tax strategy and planning and of course, help to file your taxes. Please reach out if you need any assistance.