Starting a business is an exciting time but also a lot of responsibility. To ensure your company is successful and thriving, you must understand the legal steps to getting your company off the ground.
Get Your Company Name in Order
Your business name is one of the most important aspects of your branding. Before settling on a name, perform a search to ensure it isn’t already in use by another company. Once you decide on a name, you must file a Doing Business As. You will need to do this for any alternate names you use as well. In most cases, you do this at your county or state offices.
Protect Your Personal Assets
The next step is to form a corporation or limited liability corporation. The type of structure you require depends on your personal business circumstances. Incorporating your business protects your home, personal savings, and other personal assets if you ever file for bankruptcy or are taken to court.
Related: Avoiding crime in your business
Apply for a Federal Tax ID
To ensure your business is legal, you will need to apply for a Federal tax identification number. Most business owners can apply online. It only takes a few minutes, and you can track your application’s status via the website’s tax ID number lookup.
Obtain the Required Licenses and Permits
Local, state, and Federal law may require you to obtain a license or permit to operate legally. Some determining factors include the services or products you provide and the physical location of your company.
Once you have the legal names and permits required to operate your business, you can begin doing business, hiring employees, and opening bank accounts or lines of credit with your business name. To learn more about the application process or how to check a TIN number status, click here to visit the IRS website.
