Register Business Name USA
To make your business a distinct legal entity, you need to register it lawfully. Doing so ensures that you do not miss out on personal liability protection, tax benefits, and legal benefits. Besides, it offers much-needed stability at the beginning of your entrepreneurial journey. To register business name USA, there are certain things that you need to consider.
Here, we will look at the company registration process in USA and discuss specific points to make the procedure easier for you.
Register Business Name USA
If you are looking to incorporate your business in the USA, you need to come up with a suitable name for your company. Make sure you decide on a catchy name that grabs the attention of the audience. Also, you must select a name that is not already registered with the United States Patent and Trademark Office, USPTO.
To ensure the availability of your chosen name, you can log on to the USPTO website and use the online tool up there. Alternatively, you can browse the local business directory for any reference to your shortlisted name.
Select a Business Name That Meets Your Long-Term Business Goals
After you have selected a business name and confirmed its availability with the USPTO website, take a moment to ensure it fulfills your long-term business goals. Changing your business name once the registration is done is quite challenging. So, to register business name USA, you must make sure that your chosen name will stand the test of time. Also, trying to change the business name after few years may create a lot of confusion for the customers.
Select the Type of Your Business Entity
One of the most important aspects of company incorporation and registration in USA is determining the business entity. You can register your business as either LLC or as a Corporation. The former is relatively less expensive. However, it involves a lot of paperwork. Also, an LLC eradicates your personal liability against any debts accrued by the business. This means your personal assets will be safe in case something goes wrong.
On the other hand, a Corporation is registered either as a C Corp or an S Corp. In an S Corp, your company is not taxed at a business level. This implies that you only pay income tax on the revenue generated. But with C Corp, companies are subject to what is called Double Taxation. This means that you will be taxed both on the profits of your business as well as on your personal income.
Select the State Where You Wish To Register Business Name USA
The company registration process in USA does not make it mandatory to register your business in the state you operate. So, you can choose any state. Remember, the tax rates greatly vary from one state to another. Therefore, you can decide to register in a state that has a low sales tax and save fortunes of money in the process.
Secure the Employer Identification Number (EIN) for Your Business
Before you register business name USA, you must understand about EIN. Also, known as Federal Tax Number, EIN helps to register your business at the federal level. In many ways, it is comparable to Social Security Number for your business. You must apply for the EIN to file your tax returns to the state or federal government in the future.
Registering Your Business
The processing period for company incorporation and registration in USA varies from state to state. The process of obtaining EIN may also take a couple of days, especially for foreign nations, who need to wait for at least 30 days. For people who need to file for EIN and their business owners are not US citizens, a special incorporation application must be sent to the IRS unit. These additional formalities may delay the process of registration.
The process to register business name USA is made quite simpler these days. Even people residing outside the USA can easily register their company. They just need to ensure they have the right legal documents to get started with their entrepreneurial journey.