Christopher Skorina Business Law Blog on Lawyers.com

Do I Need to Register My Company to Do Business?

Thursday, June 25, 2009 by Christopher Skorina

The simple answer is: Yes, you do need to register your company to do business. While it may be tempting to just hang up your sign and begin selling your wares, the government sees it very differently. There are specific steps you need to take before starting a new business. Paying attention to details is very important. The following steps will help you make certain that you are legally ready to operate your business:

1. Identify the legal structure of your business. Some options include limited liability corporation, partnership or corporation. The type of legal structure should be carefully considered as it affects your company’s exposure to liability. The legal structure of your business determines which registration forms are needed by the state and local governments.

2. Determine your business name and register that specific name. The legal name you choose, again, depends upon the legal structure of your business. For example, if your company is a partnership, the legal name could be the last names of the partners or the name given in your partnership agreement. Most importantly, your business name is required on all government applications.

3. Register for your business’ Federal Tax ID. All partnerships and corporations must have an Employer Identification Number, which can be obtained from the U.S. Internal Revenue Service.

4. Register with the State Revenue Agency and Obtain Permits/Licenses. Aside from your Federal Tax ID, your business may also need to register with your State, especially if your product requires sales tax.

Registering your company before you do business is essential to your business’ well-being and success. An excellent source for basic registration questions can be found on the official website of the U.S. Government.

This article was provided for by the Orange County business law attorneys of Mosher and Skorina, toll-free at (877) 779-5864 or (949) 582-1544.

Posted at 10:27 AM

Topic: Business Law