Starting a new business can be a tedious task. Along with developing your product and services, you also need to take care of documentation and other essential requirements. Unless you have done it before, these processes can be confusing.
Which legal documents are required?
When and where do you have to submit them?
It’s common to have such questions.
But it isn’t rocket science. Once you get a hang of what is needed, you can focus your energies on building your business.
To help you understand how to proceed, we’ve listed all the requirements for starting a business in the USA in this post.
Requirement 1: Registration and Trademark
The first step to getting your business legally established is to get your business name registered. While picking a name, make sure you finalize something that is unique and is brandable. It’s also important to keep in mind that you’re going to be in it for the long haul. So, pick a name that is easy to scale.
It’s also recommended that you invest some time into figuring out if domain names and social media handles associated with the chosen name are available. That’s because maintaining an active presence online is an important part of generating more leads.
In addition to getting your name registered, you should also get a trademark for your business. Once you get a trademark, no one can copy the name of your business.
Requirement 2: State and Federal Filing
The next requirement on the list is state and federal filing. For this, you’ll need to figure out the paperwork required based on the business structure that you’ve chosen.
Limited Liability Company, Corporation, Sole Proprietorship, Partnership, and Non-Profit Organization are some of the most commonly chosen entity types.
All of these different business structures have varied arrangements for taxation, ownership, and other operational needs. Make sure you pick an entity type after thorough research and consideration.
That’s the reason even the documents required for filing are different for each structure. However, for all entity types, you’ll be required to file the documents with the Secretary of the State.
Requirement 3: Employer Identification Number
To open your bank account and start hiring employees, you’ll need to acquire an Employer Identification Number (EIN) for your business.
Also known as the Federal Tax Identification Number, it is required so that businesses can easily file their annual taxes and pay employees.
Requirement 4: Agreements and Contracts
Legal contracts and agreements are essential for avoiding professional disputes. So, it is recommended that you create detailed contracts and agreements for your employees, business partners, contract-based workers, as well as vendors.
Requirement 5: Business Bank Account
Mixing your personal finances along with business transactions isn’t a good idea. Even your assets should be kept separately for better management. You should open a separate bank account to manage finances for your business.
Requirement 6: Special Permits and Licenses
For some businesses, acquiring special licenses and permits will also be needed. Typically, these are the businesses linked to alcohol, medicine, and transportation. If you aren’t sure whether your business will require special licenses or permits, you may want to check with the governing body of your state.
Want more details about what is required to start your own business in the US? Check out this infographic published by GovDocFiling.
About the author:
Brett Shapiro is a co-owner of GovDocFiling. He had an entrepreneurial spirit since he was
young. He started GovDocFiling, a simple resource center that takes care of the mundane, yet
critical, formation documentation for any new business entity.