How to register a business: 4 steps to success
Acknowledge Him in all your ways, and He will make your paths straight.
– Proverbs 3:5-6 (NET)
It’s often said that God writes straight with crooked lines. Business registration is the beginning of an exciting journey. Even the best plans can veer off-course – that’s part of the adventure! At times, your paths may look more like the zigzags of a toddler’s drawing than the tidy trajectory you envisioned.
When you turn to the Lord in prayer for every decision, you’re never alone. He’ll guide you toward the right people, places, and paths. Expect interesting detours along the way! All entrepreneurs experience successes and setbacks. Great leaders consider it an opportunity to learn and grow while serving the Lord and His people.
Step 1: Check and protect your business name
Is your business name available? If it’s trademarked or in use by others in your area or industry, you may need a different name. However, trademarked names might still be available if they aren’t in a competing industry. Ask an attorney about trademarks and business name protections, including:
- Domain name registration – Search online and check with domain-name registrars to see if the website you want is available. If so, they’ll register it for nominal, renewable fees. Web addresses needn’t match business names, but both should be simple and descriptive. Names that are easy to say, spell, type, and remember help build your brand and traffic.
• Business name registration – Check with the SBA for federal and state registration steps and other details. Your state’s Secretary of State office can help.
• Trademark business name registration – Learn trademark basics, including how to search and apply for trademarks to get protection for names, products, and services.
• Doing Business As (DBA) – If you use a DBA (trade, fictitious, or assumed name), there may be municipality, county, and/or state DBA registration requirements.
Step 2: Choose your location and business structure
When you register your business, select a physical address for tax, banking, government-agency communications, and other mail and business purposes. Before registering, select a legal business structure. This affects operations, tax obligations, your level of personal liability, and more.
Common business structures include:
- Sole proprietorship – If you don’t select a structure, your business is a sole proprietorship. You’ll file taxes under your Social Security or Employer Identification Number (EIN). Personal and business revenues and liabilities aren’t separate.
- Partnership – One or more partners can share ownership. Liability protection depends on the type, such as limited partnership (LP) or limited liability partnership (LLP). Partnerships can offer tax incentives, a chance to pool resources, and other advantages.
- Corporations – A corporation is independent and legally separate from its owners. It can provide strong personal liability protection, but regulatory and tax requirements are complex. If you want shareholders and have business expansion plans, consider a corporate structure.
- Limited Liability Company (LLC) – This combines partnership and corporation features. It helps protect personal assets from business liabilities. LLCs distribute profits and losses to shareholders.
Laws and processes can change, with differences from state to state. Consult an attorney and learn about business structures.
