Do you want to learn how to setup your own business and can do it yourself? The following is a general process you must complete to operate a business legally in the United States of America.
- Complete Articles of Incorporation Articles of Incorporation are a set of documents that are filed with the state government and provide basic information about a corporation such as its name, purpose, and the names of its directors and officers. They are necessary for a corporation to obtain legal recognition and limited liability protection.
- Registration your Business with the State – Search for the Secretary of State in the state where your business is located. Contact the Secretary of State to obtain the necessary forms to register your business. Submit the completed forms with the necessary fees. Once your business is registered, you should receive an Employer Identification Number (EIN) from the IRS.
- Apply for a Federal EIN – A Federal Employee Identification Number is required to open a business checking account, establish business credit, and be recognized as an entity operating in the USA. Unless you want your business to be recognized as an alien operating in the USA, you may want to consider a different approach. This number is used to identify your business for trade and taxes. You must file a tax return each year to maintain your business status.
- Fictitious Business Name Lookup – When getting a business license, you must check with the county where your city is located, to make sure that no other entity has filed with the same name as your business. This is generally called a Fictitious Business Name lookup.
- Fictitious Business Name Filing – If no other entity has filed your Fictitious Business Name, file your business name with the county, and use it to get your business license. Each county charges a filing fee to register your Fictitious Business Name.
- Zoning Clearance – The purpose of a zoning clearance is to ensure that you are allowed to operate the type of business you intend to operate, in the location where you are applying for a business license. Some agencies charge a fee for this clearance.
- Business License – A business license allows you to legally operate your business in the location you are applying for. You may need to apply for a business tax certificate or complete a local tax registration to obtain a business license. Each city charges a filing fee for a business license.
- Regulatory Permits & Licensing – Depending on the type of business you run, you may need to file for specific licenses and permits. Contact your city, county, and state to determine which permits are required for your type of business to operate legally in your local area.
- Disadvantaged Business Registration (optional) – Federal Contracting – Woman Owned Small Businesses, Small Disadvantaged Businesses, Service Disabled/Veteran Owned Small Businesses, Women Business Enterprise, Minority Business Enterprise
- Be sure to obtain your DUNS number! It’s that number that unlocks business success. DUNS numbers can be obtained from Dun & Bradstreet. In order to establish a business credit file, you will need this number. You may also find other small business resources useful on this site.
- Determine your NAICS Code – The NAICS code is a six-digit system that classifies businesses by the type of service or product they provide. Search NAIC codes and list 1–10 codes that describe your business. You will use this information for setting up various accounts and registering your business with other entities.
- Complete Bylaws & Operating Agreement – The bylaws and operating agreement provide a framework for how the business will be managed and decisions will be made. They also outline the ownership structure and each owner’s duties and responsibilities.
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