Do You Need to Register Your Company to Do Business?

Yes, no, sometimes and maybe.important things you can do keep your limited liability
The answer as to what registration is required for a"shield" in place is to file a Certificate of Assumed
business depends on two things: (1) the legal entity youBusiness Name in order safely to use trade names.
create to operate your business and (2) the nature of3. Register for your business' Federal Tax ID. All
your business.partnerships, multi-member LLC's and corporations
Small business owners often make the mistake ofmust have an Employer Identification Number, which
creating a corporation or LLC without completing basiccan be obtained from the Internal Revenue Service.
steps. Use this short checklist to review whether you4. Register with the State Revenue Agency and
formed or registered your business properly.Obtain Permits/Licenses. Depending on the nature of
1. Pick the right legal structure for your business. Youryour business, you may be required to register with
options include the limited liability company (LLC),your state, especially if you sell a product and are
general or limited partnership, limited liability partnershiprequired to collect sales tax. In some parts of the
or corporation. Your business lawyer and yourcountry, you might even be required to obtain local
accountant should be consulted. You should considerpermits or licenses.
such factors as the number of owners, the businessOf course, this is the short list, and your business may
plan, the capitalization plan, taxes and other factors.be required to obtain other permits or licenses, or you
2. File a Certificate of Business Name. Mostmay be required to register with other governmental
businesses use a shorten name, called a trade name,agencies. All law is local, in the sense that the law is
for marketing purposes. ACME Medical Products,applied differently in different states, counties and cities.
Incorporated will be marketed as "ACME" or "ACMESee your legal advisor for help.
Medical Products." One of the cheapest and most