Business Registration and Business Licenses

As a small business owner, it is very important for you to register your small business. Before registering your business, you need to decide on your business structure. There are four primary business structures. You must decide which structure is most appropriate for you. You can see a business structure chart here which will allow you to compare the different business structures. The business structure comparison chart outlines issues you should consider when deciding which small business structure is best for you. In general, if you are looking to save money with your small business, then the Sole Proprietorship structure would be best for you. But, if you are starting a small business where it is possible for you to be sued (which is just about any business), then you should consider a business structure that will limit your personal liability.

Once you figure out the structure, you will need to register your business. If you elect the Sole Proprietor small business structure, then you should get a DBA or a Fictitious Name Registration so that you can get a bank account with your business name. You will likely need to register with your local county. If you are electing any of the other business forms, you will register with your state Secretary of State.

Keep in mind that if you are selling products, then you must get a state tax id because you must collect state sales taxes. Some states are also taxing certain services. You should visit the website for your state Department of Treasury for additional information.

Finally, certain businesses require additional licenses. Many states, for examples, require that nail technicians, carpenters, child care centers, and so forth, be licensed. So, you may be a work at home mom running a child care center out of your home who decides to be a sole proprietor. You may still need to get a license before you can take care of other people's children in your house. Keep in mind also that while the state may not require you to have a license, your county or township may require to you file for a license. To find out whether you need an additional license, you can contact your local chamber of commerce or your state Secretary of State. You can also use the search engine and type in the following words: name of state business license (e.g., New Jersey business license, California business license, Florida business license) or business license name of state (e.g., business license California, business license Washington state). You can do the same type of search for your county or your township.

If you need additional help, the search engine is a great (and free) resource for small businesses. Don't be afraid to do searches! For example, you can search for starting a business in California, starting a business in Florida, starting a business in Texas, starting a business in Oregon and so forth find a lot of great resources. Every state has at least one guide that gives you an overview of starting a new business in that state. Many states will also list the available financial resources such as small business loans and small business grants for certain types of businesses.

You can also contact your local Small Business Administration office. The SBA has many resources to help small business just like you. Whether you need a small business mentor or money for your small business, the SBA can generally point you in the right direction.

Finally, you can contact your local SCORE office. They provide counselors that will sit down with you one on one and work with you to flush out your ideas and create a business plan. These small business mentors are business people within your own community who volunteer their time to help you succeed with your business. The SCORE website also has a lot of useful information on starting a business.

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