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Chapter 7

Registering a business and other admin tasks

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Small business guides > Your guide to starting a business > Registering a business and other admin tasks

Registering a business and other admin tasks

After all the excitement of deciding to start a business, you’ll have some paperwork to do. These first tasks as a business owner won’t be the most fun, but they’ll help keep you out of trouble with the law.

A showroom for a furniture business called Sticks & Thrones.

How to register a business with the government

There are a few reasons why you might need to register your business with government bodies:

  • Business licenses and permits
    Your city, county or state may require you to get a license if you have a physical location, sell taxable goods or services, or serve food and beverages. Certain service providers must also get a license. Your local chamber of commerce should be able to tell you what you need. If you’re in a rural area, then your local librarian can point you in the right direction. 

  • Income tax
    Sole proprietors don’t have to do anything with the IRS until tax time, unless they hire someone. All other types of businesses are expected to at least apply for a federal tax identification number when they start out. Corporations have the most to do. The IRS has a handy guide for all types of businesses.   

  • Sales tax
    Most goods and some services carry a sales tax. You’re expected to add that tax to your price and collect the money for the government. Sales taxes are managed by state governments. Search for your local state tax agency to find out your obligations. Online businesses used not to have to worry about sales tax but it’s becoming more common for them to have to collect it. The sales tax rate changes depending on the state where your customer resides.

  • Retail licenses and manufacturing permits
    If customers physically come to your business, you may need a retail license. If you make things, you could need manufacturing permits. This can be a catch for home-based businesses as local zoning laws sometimes don’t allow certain business activities in residential areas. To check on the sorts of licenses and permits required by your local government, talk to the local chamber of commerce (or librarian).

If you’re going to employ people, ask the IRS for an employer identification number (EIN).

Extra steps to set up an LLC or LLP
If you’re setting up as an LLC or LLP, you’ll also need to register as a legal entity. This is handled by authorities in the state where your business is based. As part of the process, you’ll also need to file documents identifying key decision makers in your business, and outlining some of your internal processes. In most states, you’re also required to register a business name.

Where to get help

If you’re unsure of your obligations to the government, there are people who can help. Look for industry associations for your type of business, search around for a Chamber of Commerce and other local business advocacy groups, find businesses like yours and ask the owners what regulations they have to comply with, or simply speak to a local accountant.

Chapter 8: Create a website

Need to create a website but feeling lost? We step you through the process, from registering a web address to writing and launching your site.

Read chapter 8

This guide is intended as general information only. Always check with a professional for advice.

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