If you’re reading this article, chances are that you are planning to start a new business soon. That’s a big step forward. But before you can actually start closing deals, there is a lot to be done, especially in terms of paperwork.
It is essential to establish your business as a legal entity before you can hire employees and conduct business transactions. In addition to this, you have to take care of business licenses, contracts, and more.
For those entrepreneurs who are setting up a business for the first time, it can be confusing to figure out what is required. To clear up the confusion, let’s discuss, in detail, the documents and processes for establishing a business in the USA.
Step 1: Get Your Business Name Registered
To get started, pick a name for your business that is easily scalable, memorable, and brandable. Once you shortlist some names, make sure you check the availability of related social media handles and domain names. It’s an important step to growing your business online and attracting more customers.
Also, you should get a trademark so that other businesses can’t copy the name and branding of your business.
Step 2: Choose a Business Entity Type
To establish your business, you’ll also need to choose a suitable business structure. Sole Proprietorship, Limited Liability Company (LLC), Corporation, and more — there are multiple options that you can choose from.
Invest some time into reading about the impact of taxation and ownership for each type. It is a crucial decision, so make sure you pick what’s right for you.
Whichever type you choose, make sure you find out which documents are required for federal and state filing. Then, gather them and submit them to the Secretary of State.
Step 3: Fulfil Filing Requirements and Get Your EIN
To open a business account for your business, pay taxes, and employ people, you will first need to get an Employer Identification Number (EIN) for your business. EIN is important so that the government authorities can easily identify your business for taxation purposes.
Want more information about setting up a business in the USA? Take a look at the infographic below, created by GovDocFiling: