When registering a company, you are establishing an artificial persona with the same legal rights as a real one; for example, it can incur debt and sue or be sued. There are a number of steps that need to be taken when forming a company, and it is recommended to seek expert advice.
Depending on the type of business you’re planning to start, there are various structures that can be registered as companies. Some of the most common include limited liability companies (LLCs) and corporations. Choosing which one to register depends on your business goals and what state you plan to operate in.
If you are launching an LLC, the process of registration is relatively straightforward and requires the following information:
You should also choose a name for your company. Make sure that your chosen name complies with local and state rules, as well as federal copyright and ownership laws. You can use a name reservation service to avoid conflicts.
Another important consideration when registering a company is a registered agent. This person or service is responsible for receiving legal documents on behalf of the company and is a requirement in most states. In addition, the government can contact a registered agent when a company is delinquent on taxes or has other issues.
A corporation is a business entity that is separate from its owners, known as shareholders. It can be registered as a domestic or foreign entity, and it must follow state regulations. Generally, corporations are best for large organizations with multiple employees. They must pay federal and state taxes, as well as file paperwork in the state where they are incorporated. register a company