Company Registration in USA, Incorporation California, Texas
Business is not a new concept; it has been there since olden days. Previously there were no laws or statutes governing the business entities etc but with the passage of time many statutes have been made in this regard. All of these legislation make it mandatory that for a business entity to have legal existence must be registered in accordance with the laws of that country. Company is a type of business entity and is to be registered to have a legal existence.
Company is a legal entity with a separate existence. Company is incorporated in accordance with the applicable corporate laws of the respective country and the same varies from country to country. Company registration legalizes the existence of the company and creates a legal person. Company registration is mandatory in order to start a company and the rules regarding the same vary from jurisdiction to jurisdiction. The most important prerequisite while starting a company is to get the company registered in compliance with the law. If the same is not done then it would have grave consequences like being charged for fines and can even result into forced business closure. In US, the laws governing registration of Company varies from state to state. It is always better to contact the concerned department of the concerned state in order to gather a complete understanding with regard to the process of business registration.
5 easy Steps to Register a company in California or Texas, USA
The following are some easy and recommended steps to ensure that the company gets registered legally and possesses all the necessary requirements :-
Step 1 - Determination of the legal structure of the business
As the heading itself makes it clear, the first step is to determine what type of company one wants to start and maintain. In the US, there are four kinds of legal structures for which business registration is required:
- Company
- Limited liability partnership (LLP)
- Partnership
- Sole-proprietorship
One must organize his/her business as a legal entity. There are several options to consider, and all have different legal, financial and tax considerations. The right legal structure for one's business depends upon a number of factors, including the level of control you want to have, your business vulnerability to lawsuits and financial needs.
The legal structure you choose will determine further registration requirements. Once you choose a legal structure, you may have to file registration forms with your state and/or local government. The requirements vary from state to state.
If one establishes his business as a sole proprietorship, he won't need to register his business at the state level. However, many states require sole proprietors to use their own name for the business name unless they formally file another name. This is known as your Doing Business As (DBA) name, trade name or a fictitious name.
Step 2 - Register Business Name - Company Registration in US
It is best to get a name for the business. Once you have got the name for your proposed business, with the help of website and telephone services specially designed for checking, you can check whether the proposed business name is available or not. Fulfillment of procedure concerning name availability involves charge depending on different formalities existing in respective states.
Step 3 - Obtain Federal Tax ID - Company Registration in US
It is important to obtain a tax ID also known as Federal Tax Identification Number from the IRS. It is also known as Employer identification number and the application for the same is to be made on Form SS-4:
Step 4 - Register with the State Revenue Agency - Company Registration in USA
Just as a Federal Tax ID is needed, one will also need to obtain Tax IDs and permits from the concerned state's revenue agency. If the entity would be engaged in sale of products and is required to collect sales taxes, the entity has to obtain a Sales Tax Permit or Vendor's License from the state or local government (or both).
Step 5 - Obtain Licenses and Permits - Company Registration in USA
Companies are to necessarily obtain all the proper licenses and permits which are required in order to legally operate the business in the state or city. The vast majority of small businesses will need to obtain a general business license or industry-specific operating permits from state and local government agencies.
It would be better if you keep in mind all these things while registering a company in US. There are many law firms which provide services in this regard.
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