It will be important to define your business structure. Will you register as a limited liability company (LLC) or run your business as a sole proprietor?
A sole ownership regularly requires less conventional documentation, a more straightforward tax collection framework, and you’re qualified for every one of the benefits.
On the other hand, an LLC doesn’t need as much paperwork, but it may be eligible for more funding options, and perhaps most importantly, the LLC is responsible for all of the business’s debts and liabilities.
The structure you choose will be determined by your strategy to grow the business or sell it in the future, as well as your current and anticipated business objectives.
For example, if you want to grow your business quickly and need a lot of money, you might be better off using an LLC to get small-business loans.
You can typically register your business by simply registering your business name with a state or local government office once you have finalized your business plan and selected a company structure.
Many states expect you to enroll with the secretary of state’s office, and some might expect you to get a bureaucratic expense ID for government records.
The U.S. Small Business Administration says that registering your business usually only costs less than $300, but fees vary by state and business structure.
The structure you choose will be determined by your strategy to grow the business or sell it in the future, as well as your current and anticipated business objectives.
For example, if you need to scale your organization quickly and need huge financing, it could be smarter to settle on a LLC model so you can get private venture credits.
