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Do you need to register your small business?

Do you need to register your small business?

Starting a small business is an exciting experience. After weeks, months, or even years of planning, you are finally getting to see your dream become a reality. But amid all the anticipation, it is important to take care of the legal side of the process. The first question you should ask yourself is whether your small business needs to be registered. In most cases, the answer to that question is yes.

The registration of small businesses takes place at the state level, and different states will have slightly different rules regarding what types of businesses have to register. There are some basic parameters, however, that apply to most states.

One-person operations are usually not required to be registered with the state. These businesses are deemed inseparable from their owners (that is to say, the business and the owner are one and the same entity). In some states, the same can be said for partnerships.

If a business is larger or has its own fictional name, then it must be registered with the state. This is also true for corporations, limited liability companies, or limited liability partnerships.

So what exactly does registration entail? Typically, a state will require documentation of the business’s official name, as well as its location and the names of its principal operators. Some states charge a processing fee for the registration.

While registration always occurs at the state level, there are also some municipalities and counties that also require small businesses to register with them. Be sure to check with local authorities to find out if your business requires further registration.

With your mind on the founding of your new small business, having to register with the government may seem an annoying task. At the end of the day, however, it is not an especially complicated process, and its completion ensures you are starting your career in business on the right side of the law.