Starting a business in the US can be difficult for many people, especially if they are not from the United States. There are too many regulations to consider and there is also LLC online filing (which can simplify things to a great extent). If one is not knowledgeable about the latest requirements set by a specific state, the process can take longer than one expects. The following are some pointers for you if you wish to start a business in the USA.
Assess the legal design of your business:
Your business needs to be organized as a legal entity. There are numerous options you can consider but all of them will have various financial, legal, and tax considerations. The legal configuration for your company hinges on a number of things. These include your financing needs, the level of control you desire and your business’ susceptibility to lawsuits. You must remember that the various considerations that you need to take into account vary from state to state.
Another thing that you need to remember when learning how to create an LLC is that your first choice of an enterprise type is not permanent. This means that one can initially register as a sole proprietorship, and if one’s business prospers in the future one can change one’s business to an LLC.
- Register your company’s name:
The next thing you need to do is to register your business name. The name of an enterprise by default is usually the name of the organization or person who owns the business. This can be your full name or your organization’s title. You must remember that your business’ legal name is a major prerequisite on all government papers. Similar forms may include your tax identifications, an application form for employer, licenses, and permits.
- Obtain your federal tax ID:
The next most important thing to do is to get your hands on your federal tax ID. Whether you are an employer with employees, a business partnership or a corporation you are required to obtain an Employer Identification Number (EIN). This you can procure from the U.S. Internal Revenue Service. This number is also referred to as Form SS-4 or Employer Tax ID:
- Registering with the state revenue agency:
Just as you are needed to have a Federal Tax ID, you are also required to procure permits and Tax IDs from your state’s revenue agency. You may also be required to obtain a vendor’s license or a Sales Tax Permit. This is important for businesses aiming at selling products and compiling sales taxes. This license can be obtained from your local or state government.
- Obtain other licenses and permits:
Majority of enterprises are required to obtain some category of business license or a similar permit that will allow them to formally operate in a US state. You may be required to obtain a general business license or an industry-specific operating permit, depending on the nature of your business. The permit can be obtained from local and state government agencies. Also depending on the nature of your business, you may need to be licensed at the local, state or federal level.
These were five ways that you need to look out for before starting a business in the US. If you go by the book and keep things legal, you may have a prospering business in no time. Good Luck!