Business Registration
Tips & Advice to help you make your decision on Business Registration
Most states require formal business registration in order to perform sales or services within their jurisdiction. This is most commonly handled by the Secretary of State and local tax agency. State requirements typically include the name and type of business, the primary products or services provided by the company and the legal names and residences of all owners or members in the company's ownership. State registration fees vary and may change at any time.
Federal registration also exists, primarily with the Internal Revenue Service. Companies must register with the IRS to obtain a federal Employer Identification Number that allows them to withhold taxes from employee paychecks. Companies in the United States may not employ additional persons without a federal EIN. The Internal Revenue Service, as of 2011, does not require a fee for this number, but may request proof of legal business status prior to issuance. The letter received upon registration with the Secretary of State and local tax commission should suffice for this requirement.
Legal registration of businesses may help protect the owners' assets, as in the case of a limited liability company or corporation, and allows complainants to view the publicly available information. State and federal requirements constantly change, and Business.com remains a great source for the latest information on business registration and other legal requirements for small businesses.
Registering a DBA or Fictitious Business Name
To give your business an identity of its own, you have to register itBy Matt Alderton, Writer, Editor and Media Consultant Logolepsy Custom Content and Communications Entrepreneurs put a lot on the line to start their own businesses — their own money, their own time and even their own names. As a sole proprietor, you can choose to simply do business under your personal name. Or you can keep your name to yourself and look more professional as a business by officially registering a DBA (Doing Business As) name. Filing a DBA — also known as a fictitious business name — allows you to:
- Conduct business under a name that isn't your own
- Use a business name without forming an official legal entity such as an LLC or corporation
- Accept payments under a business, rather than an individual, and open a business bank account under your business name
File your DBA with the appropriate entity through easy online services
DBAs typically are filed with the state or, more commonly, the county. For a small fee, you can complete a name registration form that allows you to legally use your fictitious business name; all you'll need in most jurisdictions is your name, the date of your filing, the name you wish to do business as and your business address.
Try:
If you fear paperwork, hire someone to do it for you. MyCorporation.com, LegalZoom.com and BizFilings offer complete DBA registration services for businesses in any jurisdiction.
Decide if a DBA is right for you
If your company is structured as a sole proprietorship or a partnership, and you want to operate your business under a name other than your own, chances are you'll need to file a DBA with your city, county or state.
Try:
Learn the basics of DBA registration with articles from Business Pipeline and About.com.
Choose a name
If you want to do business under a fictitious name, choose that name carefully. Keep your name simple and easy to pronounce, and choose one that adequately describes your business while appealing to your target customers.
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Browse records of existing DBAs in your area to make sure your name is not already being used. Most states and counties have their own fictitious name databases; find yours at BusinessName.com.
Apply for a Federal Tax ID Number
A name isn't enough to do business; you'll also need a number with which to identify your business to the federal government. You can use either your Social Security Number (SSN) or an Employer Identification Number (EIN).
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Find out if you need an EIN — and apply for one online — with information from the Internal Revenue Service (IRS).
Register a trademark
Filing a DBA will not protect your business name from duplication. To reserve exclusive rights to your DBA, you'll have to register it as a trademark.
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Search federal trademarks — and apply for one of your own — online with the United States Patent and Trademark Office (USPTO).
Use — and enjoy — your DBA
Once your DBA is properly registered, you can use it to conduct business — meaning that you can freely use your DBA to market and advertise your business, as well as finance it via business checking accounts and lines of credit.
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Use your new business name everywhere — on your business cards, checks, stationery and more. Order custom business supplies featuring your fictitious name from Deluxe or iPrint.com.
- Corporations and LLCs also can register DBAs, and are required to do so if they plan to transact business under a name other than their legally-approved name.
- DBA registration can cost between $10 and $100.
- Individuals and companies can file as many DBAs as they desire.
- In some jurisdictions, a DBA must be formally announced via publication in the local newspaper.
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