Starting a business requires more than just setting up a lemonade stand. To establish your business, you need to register a business name and decide on a method that suits your needs. There are several options for starting your business and registering its name, including registering as a DBA, trademarking your business name, or registering as a business structure and operating under that name.
Registering as a DBA allows you to operate your business under a different name from your personal name. This is a simple and cost-effective way to establish your business. Trademarking your business name gives you exclusive rights to use the name and logo for your products or services. This is a more formal process that involves filing an application with the United States Patent and Trademark Office (USPTO). Registering as an LLC or corporation provides additional benefits like limited liability protection and the ability to raise capital through investors. This process involves filing articles of incorporation or articles of organization with your state government.
While any of these options may be used individually, they can also be used together for various reasons. For example, you might register as a DBA and then trademark your business name later. Each option has different requirements, and we have information on the ins and outs of registering your business based on type.
In addition to registering your business, consider partnering with Business Credit Vendors to establish a strong business credit history. NET30 accounts, also known as Small business NET30 and Business credit NET30, allow you to buy now and pay later within 30 days. These accounts can help improve your business credit score by reporting payments to commercial credit agencies like Dun & Bradstreet, Experian Business, Equifax Business, and Credit Safe.
Business Structure Registrations
You can easily begin by registering your business structure at the state level, which is the most straightforward method. This solidifies the business name as officially “yours”, so that you may legally and safely conduct business under that name.
To register your business name, you will start by registering your business structure as a nonprofit, corporation, LLC (limited liability company) or LP (limited partnership). While every business model features similar types of registration, they have small differences, which vary state by state.
Register a Nonprofit
Rules concerning the operation of nonprofits vary depending on location, which means you should be vigilant about understanding your local laws. To begin, look up further details on your secretary of state’s website, or search guides online for resources by state. To begin a nonprofit, you’d begin by filing articles of incorporation. This is info on your nonprofit, including your name, business location, what you do, and more. This is usually submitted on your secretary of state’s website.
Secondly, and this may take a few months to complete, you need to apply with the IRS for tax-exempt status. Make sure to complete this within a decent time frame, or you may be setting yourself up for failure. Search the IRS website for the appropriate application.
And finally, a nonprofit should be registered within the state it’ll be fundraising in. It can be tricky to register if you plan on doing any fundraising online, ensure you’ve taken this seriously – necessities depend on your nonprofit specifically.
Registering Corporations
Forming a corporation varies state by state, and involves multiple steps to be taken, along with a lot of paperwork. Something as important as choosing a name also has to consider state regulations. It can’t use the name of another business and includes “Corp.” and “Corporation within the title – check your local secretary of state’s website for more info.
Corporations may be required to operate with a board of directors, depending on your state. In most cases, owners can be directors, however, directors don’t have to be owners. Some states allow corporations to operate under one director, but your options will be governed by the secretary of state within the area your business operates.
You will also need to file articles of incorporation, as with nonprofits, etc. This requires a filing fee of $100 to $800 and includes basic information like its name, location it plans to operate, and more.
LLC or LP Registration
While the rules of registering an LP or LLC depend on location, just as with every other type of business, the steps are generally the same. You will need to pick your business name, ensuring it follows state rules. Businesses registering as a limited company must include terms such as “L.L.C.”, “limited company” and the like.
Once you have picked your name, you’ll go onto paying fees and filing paperwork. You will need to draft your “articles of organization”, describing your business purpose, operating agreement and more. This may not be required in every state, but it’s a smart move to have one prepared. This helps your business to protect itself by operating under its own rules rather than following state rules.
A notice of intent is required in some states, but not every location. Always be vigilant in educating yourself on state regulations when making business decisions. Then you can move onto ensuring you’ve acquired all licenses and permits – these are required for operating any kind of business.
In conclusion, beginning your very own business can feel extremely daunting, but it’s not as simple as a childhood lemonade stand. An easy way to get started is by beginning to register your business name, and following the next steps to get your operation off the ground. You need to ensure you’re within the laws set forth by your state, and you will be on your way to running a full-fledged business.
