Starting a new business requires many components. Some components involve the nuts and bolts of establishing business products and services. This is often an easier, more natural section of starting a business compared with the legal establishment of the entity. Without proper legal registrations, the business may be troubled from the start, regardless of how well received its products and services are. Tax penalties may eat profits. Lack of permits may shut the business down. Working with local resources in the process of establishing the business help ensure you are legally registered.
Review the business entity options, and the pros and cons of each. A sole proprietorship is easy to establish with a fictitious name filed at the county registrar whereas limited liability companies or corporations must be filed with the secretary of state and have more documents that need to be created. The Small Business Administration has many resources to help you choose the right entity.
File the entity registration with the appropriate state or county office. Most states have a small business portal available through the secretary of state or department of revenue and taxation that walks you through online steps to establishing the entity. Pay any fees associated with registration.
Visit the SBA and local chamber of commerce. Ask representatives about any zoning laws, permits and special licenses required for your specific business in the location you plan on operating. Follow the directions given to you to obtain any additional registrations required. For example, a new restaurant serving alcoholic beverages will need to a food service license and an alcoholic beverage permit.
Register for an Employer Identification Number with the Internal Revenue Service by filing Form SS-4. The form may be filed online, by phone, fax or mail.
Contact your local state department of revenue and taxation to register for any state, city or county county tax licenses. Some states only require federal registration where others require you to file your intent to do business within the state or county.
Contact our office at (570) 345-2888 for more information.