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Chapter 9 of 16

Registering a business and other admin tasks


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Small business guides > How to start a business: the ultimate guide > 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.

Person registering her business online

How to register a business with the government

The government will want to know you’re going into business. Get in touch with:

  • the government department responsible for business and commerce
    This is a great first stop. They often guide and support new businesses through the startup process. They can also tell you what other branches of government to go to, and they may issue you with a business identification number.

  • the tax office
    Depending on where in the world you are, you may have to pay tax on your income and tax on each sale. The tax office can set you straight on your obligations and tell you how to lodge your returns.

There may be other departments to speak to for things like:

  • permits and licenses – you may need permission for certain types of business activity, such as retail, manufacturing, or handling particular types of products.

  • employing people – if you’re hiring staff, the government will want to track and tax your workers’ pay, and they’ll expect you to comply with employment rules and regulations.

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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 to be able to get around 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 be an employer, ask the IRS for an employer identification number (EIN).

Extra steps to set up an LLC, LLP, S-Corp, or C-Corp
If you’re setting up as an LLC, LLP, S-Corporation or C-Corporation, 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.

Getting a trademark

You can also legally protect your business name and logo to prevent others from mimicking your identity. This is different from a DBA registration and can be a valuable step for businesses that plan to invest a lot in making their brand widely known.

This area of the law can get complicated – especially if you expand into overseas markets and find there’s a business there with a similar name. Ask for advice from a legal professional with experience in this area.

At the very least, use trademark registries (and search engines) to check that no one already has your business name. It’s an easy way to save yourself a lot of hassle.

Chapter 10: Small business insurance

There are dozens of things that can go wrong when you start a business. Fortunately, there are also dozens of small business insurance policies.

Read chapter 10

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