As a business owner, you should register your business online. If you have employees, you should consider registering your business online. If you’re operating your business under a company name, you must register your business to fulfill legal requirements. Failure to register can lead to investigation from the IRS and the state. You should always keep your business secure and safe. In this article, we will show you how to register your business online.
Register Your Business Name
The first step to registering your business online is to register your business name. This is mandatory if you have employees and if you’re operating with a business name. Before registering your business name, check to make sure your name doesn’t violate any trademarks. You should first register your name with the State. Each state has a different website, you can find these links by talking to the U.S. Small Business Administration. You will be able to register your name online through the state website. In some instances, you may have to register with your locality. Once you register your business name, you will have completed the first step to registering your business online.
Register Your Business As A Legal Entity
The second step to registering your business online is to register your business as a legal entity. The internet offers many opportunities. There are even online business certificate programs. Although not required for some businesses, registering your business as a legal entity can provide legal protection. This is an absolute necessity if you operate as a LLC or a corporation. After selecting your business structure, fill out the appropriate documents and register with your state government. Carefully consider which business structure you will register as, each structure has different laws and regulations you must heed. Registering your business as a legal entity is a helpful part of registering your business online.
Apply for Employer Identification Number (EIN)
To successfully register your business online, you must apply for an Employer Identification Number (EIN). If you have no employees, you may use your social security number instead. Your EIN will allow you to easily interact with the IRS. It will also simplify matters when you file taxes for your business. After registering your business with the IRS, make sure to get estimated tax vouchers (Form 1040-ES). Ensure that you complete this step to maximize your tax returns and avoid audits. Tax concerns are paramount when registering your business online.
Obtain Licenses And Permits
To avoid legal problems when registering your business online, you must have the right licenses and permits. You may have been introduced to this during business seminars. Depending on your area of business, lacking the right permits will lead to significant fines and punishment. Businesses involving firearms, alcohol, radio broadcasting, livestock, and commercial fishing are regulated by federal agencies. If this is the case, you must obtain the appropriate license or permit. Other service oriented businesses require professional licenses. You also have to follow your state’s regulations when obtaining permits. When registering your business online, take care to have the right permits and licenses.
Identify Your Business Correctly
A useful extra step to registering your business online is to identify your business correctly. Based on your businesses’ classification, you may be entitled to certain tax benefits. Most businesses are classified as small businesses. With this classification, you can deduct business insurance, bank fees/interest, business meals, depreciation, investments, and medical care expenses. By classifying your business as a corporation, you may be subject to corporate taxes. This may be benefit you over paying personal income tax. There are also advantages to classifying your business as a sole proprietor LLC. You will have simplified tax filings, avoid corporate taxes, and you can employ family members as employees without paying payroll tax. Carefully consider which classification will benefit you most when registering your business online.
Correctly registering your business online is an important part of being a business owner. Protect your business by registering your business name and establishing your business as a legal entity. Avoid fines and investigation by registering with the IRS and getting the right licenses and permits. Finally, choose an advantageous business classification. By going through these steps, you will have completely registered your business online.