Many people chose to have their own business because they want to enjoy the benefit of being independent. Having your own business will also enable you to apply your creativity and be your own boss. This is not to say that personal business owners must be free from the usual encumbrance associated with working for somebody, it has been found that many bosses work more than when they are in full employment.
Starting your own business can be profitable in the long run, but you need the guts to finish what you have started no matter the situation. So, before you make that move, know what it takes to register your business and the types of businesses that are available for your perusal.
Determine the name of your business Naming your company is the first thing that you need to get done before anything else. Because it is the name which you give to your company that will appear on telephone directory and the also the general public will call you by your name. Don’t forget that your business card, advertising format will also answer your business name. But, you need to choose something sensible and must be easy to remember.
Moreover, make sure your business name isn’t duplicated, so you will need to take permission from the state secretary to help you in choosing another name with no fee attached.
How to register your business
Determine your business structure – your business structure is the basis for your business existence, it must fit perfectly with your aspirations. However, if your business structure is bad, you might encounter problems that will eventually lead to its collapse. Some of the common business structures are sole trader, Limited Liability Company, Corporation and Non-Profit and they all have merits and demerits. So, for you to know the right choice, take into consideration issues like setting up costs, taxation, business span, and several other factors. If you are in need of additional help consult an accountant or other professionals that are capable of putting your proposed business on the right path.
Limited Liability Company (LLC)
A limited liability company is a type of business ownership, though relatively new in the US, it combines structure and benefits of both partnership and corporation. LLC shareholders are referred to as shareholders and they are only limited to their investment, so cannot be held responsible for company debts except they have sworn to a personal guaranty.
A corporation is a complex business structure with extensive legal and tax requirements. Setting up a corporation requires that an intending businessman knows the different types of a corporation that are available. Ordinary corporations are taxed as a corporate body then taxed again while allocating shares to shareholders. However, an S corporation is a business structure in which owners are exempted from certain forms of tax and other financial liabilities.
This is a business organization that is mostly misunderstood by many people. A nonprofit organization is also known as a charity. They are basically set up to take donations from willing donors for purpose of helping or aiding nonprofit missions or nonprofit organizations. However, a nonprofit can also conduct business like their profit-making counterpart but with the sole aim of paying salaries and taking care of other recurrent expenses.