Start a Business & Manage Your Finances Like a Pro!

Do you know starting a new business is not as difficult a task as before? If you have decided to start and grow your own company then you can do that without any hassle. According to the latest data released by the United States Census Bureau (September 2021), nearly 500k business formation applications have been registered under the US government in September. Among which, the Agriculture business is leading with a 6.2% hike compared to previous months.

Starting a business is easy. Pick a business structure, decide a location, give a name to your business, check if the name is available for your business, and finally create an operating agreement to launch your business legally. Get a professional service provider to get these jobs done.

The easiest way to start your business is to form a Limited Liability Company. The reason startups choose LLCs over any other business structure is because it has lesser risk and fewer liabilities. The tax burden is also low compared to other forms of business. 

How to Start a Business

When we talk about starting a business, it comes with several factors. Yes, it is not that easy, but not as difficult as you might think. Some basic steps to be followed to start a business. Among which registering with the Secretary of State is a mandatory task. 

The very first and the most important step to start your business is to get a name for your business. For any corporate structure, it is necessary to check if the name is available or not. It is easier to check it online through the official state website. After the name availability check, entrepreneurs need to register their business names.

It is helpful to get a professional hand to go further. The registered agents have hands-on experience in handling legal matters and bulk paperwork. You get a professional agent and file the certificate of formation under the Secretary of State. 

If you are opting for an LLC, an operating agreement should be made. Most of the states in the US do not need an Operating Agreement while forming your business. However, it is recommended to have one for future references. The formation certificate can be filled and sent online or offline. A certain amount of registration fee should be paid by online method or offline method.

There are several reasons for choosing LLC over other corporate structures. The main aspect of having an LLC is there is no direct tax to be paid by the LLC. However, each member of the LLC will be liable to pay income tax to the federal government. Unlike other corporate structures, LLCs do not have to pay any direct tax to the local or federal government. LLCs that have employees should get the EIN or Employer Identification Number. EIN is mandatory only if there are employees in your company. To get the EIN, one has to register through the IRS via online or offline mode. 

It is absolutely necessary to register your LLC under the Secretary of State or the local government. Failing to register might result in heavy penalties. On the other hand, in the future, if anyone wants to dissolve an LLC, they should register the certificate of dissolution with the local government to ease the dissolution process. 

Evidently, the process of setting up a business involves a lot of legal matters that need to be taken care of. Getting a professional agent, maybe a corporate lawyer and a professional accountant would be a great decision before you start your own business.