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How to start a business in USA?

One of the most exciting endeavors is starting your own business, the thrill and excitement of implementing your paper ideas into your real business is overwhelming. Now there are some easy steps to register a business in USA and this article will guide you to do the same easily without breaking any sweat.

How To Start Doing Business In The USA?

An important question that arises in the mind of a potential entrepreneur is why should he register his business, the answer is quite simple. Registering for a Sole Proprietorship is not mandatory but we recommend you do so as it will recognize your company as a legal entity and simplify many processes such as tax filing.

However, before you go through the process of registering and starting your business in the US, it is imperative that we gather all the necessary documents and information before we begin.

Regardless of the company structure you are going to register, there are some basic documents required that will facilitate your respective company registration, these documents are:

  • Articles of Incorporation;
  • The official name of your business;
  • An official address for your business;
  • Information about the owners of the respective companies;
  • Other relevant documents such as share certificate or partnership agreement depending on the business structure;

Now moving on to the steps where one can register and start their company and start their business, these steps may sound a bit more complicated than they sound, but rest assured they are as simple as they come. These steps are:

Choosing your company structure depends entirely on the type of business you are going to start and the number of people involved. These are some of the options available to you to choose about company structure in USA:

Sole Proprietorship – As the name suggests, this business structure refers to the fact that you are the sole owner and the only person who manages the business. In this type of business, there is no distinction between the owner and the business and therefore if there is a problem your assets will also be considered along with the assets of the company. Sole proprietorship is considered a stepping stone to building a bigger business in the future.

General Partnership – A general partnership company is formed when two or more persons jointly decide to start a business. Partners have full responsibility and liability for running the company and hence their personal assets can also be frozen if there is a problem.

Limited Liability Company (LLC) – If a person wants to separate their separate entity with their business. The best way to open an LLC is since that person will not be directly liable for any mishaps that occur within the company.

Limited Partnership – In a limited partnership, there are two categories of powers. There is a general partner who manages the day-to-day business of the companies and is personally liable. And then there are limited partners whose liability in certain companies is limited to a certain amount.

Corporation – A corporation is the largest company structure. In a corporation, the company is a completely separate entity from the owners.

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There are four different ways you can submit and register a company name in the United States, however, the rules may vary slightly for different states. To register your company name, you need to register each domain name, entity name, trademark and doing business as (DBA) name. Now you can register these four under a single name.

It is not mandatory to register your company in the state where you live in the US. Since most states have different rules regarding business registration and different tax schemes, it is important to choose the right state depending on your type of business.

Once you have decided on the business structure, name and the state in which you want to register your business, now is the time to fill out all the necessary forms and register your business with the local authorities.

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This particular step is very subjective to the business you are planning to open. For example, if you are opening a restaurant, you need to apply for a food permit from the relevant authorities before starting your business. So it is important for you to research if your business needs a specific type of license or permit.

Once you’ve obtained an Employer Identification Number (EIN) after registering your business with local authorities, it’s time to open an official bank account for your business. Now it is not mandatory for a sole proprietorship to have a business bank account, but it will make things easier if one keeps their personal finances separate from their business and it will make the whole tax filing process easier.

Depending on the type of company being operated, you may or may not file for intellectual property based on trademarks, copyrights and patents. Now, it can be in the form of your company name, logo, any kind of web content, a new product or a movie.

These are the simple steps where you can start and register your own business. It may seem overwhelming at first, but it’s not at all.

Within a week or two, your company will be registered if you submit all the documents and information correctly and then you can continue your business operations with all your wacky ideas to make your business a great one.

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Starting a business in the US can be complicated, so it’s a good idea to consider consulting a lawyer, accountant or business advisor to guide you through the process.

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