Although starting a business can be a thrilling and profitable experience, the registration process can be overwhelming because of its many steps and significant decisions. However, you don’t need to worry, as business registration can be manageable.
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Our blog post will guide you through the process, providing tips and tools to make it smoother. Business registration on an existing business or establishing a new one, we’ll help you complete the procedure in seven simple steps.
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If you still feel intimidated after reading our post, we have listed top LLC services like ZenBusiness that can handle company registration.
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How to Register Your Business in 7 Simple Steps
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Business registration is a simple process if you know the required steps. To initiate your company’s operations promptly, adhere to the following seven steps.
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Step 1: Choose Your Business Structure
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Your business structure and growth objectives will determine the most suitable option for your company. Incorporated and unincorporated businesses have been previously discussed, but examining each option and understanding how they function is essential.
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It’s important to note that you must choose a structure that requires incorporation to register a business.
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Sole Proprietorship
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When it comes to unregistered enterprises, there is no distinction between you and your business. Although you get to keep all the profits, you must pay income tax.
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When you register a business, it is important to remember that your personal assets could be used to settle any debts arising from its operations.
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This may also include paying for expenses such as compensating customers who may get injured while using your product or service. So it’s crucial to take precautions and protect your personal assets by adequately registering your business.
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Sociedad General
When two or more individuals own and manage a business, it’s a general partnership. The partners share equal responsibility for the company’s debts, taxes, and legal obligations, just like a sole proprietorship.
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Limited Partnership
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In a limited partnership, there’s a requirement for a general partner to manage the business and be accountable for any debts and losses. The rest of the partners are limited, and responsible for making only financial investments.
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Their liability is restricted to the amount they have invested in the company and aren’t involved in the daily operations.
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Limited Liability Partnership
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When you register a business as an LLP, each partner becomes a co-owner, with their financial investment being the sole factor determining their responsibility for the firm’s obligations and behavior.
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This implies that each partner’s potential loss is limited to the amount they have invested in the business. However, it’s important to note that LLPs may not be allowed in all US states and professions, so reviewing the relevant laws is crucial.
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Limited Liability Company
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Registering a business as an LLC or Limited Liability Corporation establishes a legal structure that distinguishes between the company ownership and the entity itself. Once your LLC is formed, it’s recognized as a distinct independent legal entity.
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SMEs should create an LLC because it protects their assets from being used to cover corporate debts and offers some tax benefits. Furthermore, the registration process is relatively simple compared to a complete corporate setup.
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C Corporation
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Many entrepreneurs consider forming a C Corporation when registering a business. These corporations are often associated with larger businesses with multiple shareholders and investors.
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Despite their size, they’re structured like other corporations, clearly separating the company’s assets, liabilities, and owners. However, forming a C Corporation involves certain responsibilities, such as holding annual meetings and selecting members for the board of directors.
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Step 2: Register Your Business Name
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There are three ways to name your company: registering a legal entity name, a trademark, or a legal name. Regarding business registration, it’s crucial to abide by the naming laws and regulations of the state you plan to register in, which can vary from one state to another.
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Choosing an appropriate naming method depends entirely on your organization’s needs and requirements, just like how you incorporate your business.
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You may use all three methods to protect your name, but it’s unnecessary. Using the same name for all registration methods is advisable, even if it’s not mandatory. Each naming option will be discussed.
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Preguntas más frecuentes
Nombre de la entidad
When you register a business, it’s important to remember that the state will require you to come up with a legal entity name distinct and exclusive from other companies. The state will utilize this designated name to identify your business and deter other companies from adopting the same name.
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However, state regulations regarding entity names differ slightly, with some states requiring the name to reflect the type of business being registered and others having rules regarding company suffixes such as “incorporated,” “limited,” or “corporation.”
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Trademark
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Once your company name has been trademarked, no other entity can register a business with the same name in the US.
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When registering your business, it’s crucial to thoroughly search the US federal trademark database before finalizing your name. This step is essential to avoid trademark infringement, which can lead to serious legal consequences.
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Therefore, taking this precautionary measure is essential when going through the business registration process.
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Doing Business As
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It’s possible to register a business with one name and use a different name for business purposes, known as a Doing Business As (DBA) name. While federal trademark protections apply to these names, it’s not required for a DBA to have a unique name at the state level.
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Step 3: Consider Taxes and Other Costs
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Every state has its distinct set of rules and regulations when it comes to taxes and the registration of companies. This implies that business registration in a particular state could offer you financial and tax benefits.
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If you plan on doing business in multiple states, ensuring that your company is legally authorized to operate in each state is essential. You can simplify the process using business registration services such as ZenBusiness.
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Step 4: Register and Acquire Licenses and Permits
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To register a business, the incorporation process is determined by the municipal government. Even though state laws may vary, some general requirements apply.
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The initial step is to obtain an Employer Identification Number (EIN). This tax identification number ensures your business is set up to pay taxes, hire employees, claim deductions, and perform other business activities.
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Additionally, you will need to provide specific crucial information and documentation.
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An official business name
Identifying information about the company owner(s)
Articles of formation or incorporation
An official business address
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Various types of businesses require specific forms to be filed with your local government office to register a business.
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Document Type:
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Corporation: Articles of incorporation
LLC: Articles of organization
LLP: Partnership agreement
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Governance:
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Corporation: Organizational bylaws
LLC: The operating agreement
LLP: Partnership agreement
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Ownership:
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Tax:
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Corporation: EIN (Employer Identification Number)
LLC: EIN (Employer Identification Number)
LLP: EIN (Employer Identification Number)
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Step 5: Open a Bank Account for Your Business
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Registering a business as an LLP, or LLC means you must legally open a business bank account once you have obtained your EIN. However, if you’re a sole proprietor or in an unincorporated partnership, there’s no obligation to maintain separate personal and company bank accounts.
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One can easily visit a local bank and complete the required formalities to establishing a dedicated business bank account. Before selecting a bank, comparing prices and benefits offered by other providers is advisable.
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Even if you conduct your business as a sole proprietor or unincorporated partnership, it’s recommended to maintain a separate business bank account to avoid commingling personal and company funds.
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This will prove to be helpful in the future if you decide to incorporate your business.
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Step 6: Protect Your Intellectual Property
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Depending on the type of business you are starting, you may possess valuable intellectual property (IP) that requires protection. For example, most businesses aim to prevent unauthorized use of their brand and name.
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If your company sells products or offers services, consider the visual appeal of your products or the creative works you produce, such as music, drawings, or writings. Implementing protective measures for your IP as early as possible is crucial to avoid any unauthorized usage. There are various methods available to accomplish this.
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Trademark
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A trademark refers to any element, such as a word, phrase, symbol, sign, or emblem, that distinguishes a product or service from others that are similar. Examples include McDonald’s “I’m lovin’ it” campaign and Nike’s “Swoosh” symbol.
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Registering a business trademark is crucial to gaining legitimacy, and it usually takes four to six months to be officially acknowledged. Once registered, the trademark is protected throughout the United States. As a business owner, you can take legal action against anyone who uses it without your consent.
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Copyright
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Copyright laws safeguard creative works such as written content, software, movies, music recordings, online material, photographs, and other original works. The author of such works has the sole right to distribute, reproduce, create derivative works, or sell them.
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When a new work is created, it becomes the author’s property, who can transfer or sell the rights to someone else.
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Patent
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If you plan to establish a new business by inventing a product, it’s highly advisable to register for a patent. This gives the inventor absolute control over the item and prohibits others from producing, selling, or importing the patented commodity for a specific period.
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Therefore, when you want to register a business for a patent is crucial to safeguard your intellectual property rights. Starting the patent process early is crucial if you have a unique concept that you want to safeguard, as the process is complex and may take up to five years to complete.
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Step 7: Set Up Your Payment Infrastructure
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It’s essential to have a convenient and uncomplicated payment method in place to ensure that your business is ready to cater to customers once it is established. Pay.com is a comprehensive payment infrastructure that offers easy-to-use APIs and no-code solutions.
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It’s versatile, straightforward to configure, and can be tailored to meet your company’s specific goals. Pay.com enables you to accept various payment options, such as credit and debit cards, ACH transfers, and digital wallets like Apple Pay and Google Pay.
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Register a business and offer your goods or services. You can provide your clients the convenience of using this secure platform to make payments through their preferred methods, regardless of your business location.
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Best Business Registration Services
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For entrepreneurs and small business owners looking to register a business, services are available to assist. These comprehensive solutions establish a strong foundation for the company and ensure compliance with legal requirements for long-term success.
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These solutions range from setting up a new company structure and obtaining necessary permits and licenses to receiving personalized guidance and ongoing support throughout their business journey.
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ZenBusiness
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ZenBusiness is an excellent choice for entrepreneurs looking to register a business online. They offer affordable and comprehensive company formation packages that include registered agent services, annual report filing, and other essential features.
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As a startup or small business owner, you can rely on their expertise to help you establish your company quickly and seamlessly. ZenBusiness provides resources and ongoing support to help businesses stay compliant and grow successfully.
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Swyft Filings
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Swyft Filings is an online service specializing in fast and uncomplicated business registration. They offer a range of business solutions, including the formation, incorporation, and adherence to regulations for LLCs.
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Additionally, Swyft Filings provides personalized support to help businesses launch and stay compliant with local, state, and federal laws.
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Tailor Brands
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Tailor Brands is a leading company that offers exceptional internet branding and design services. It’s the perfect platform to register a business because it helps businesses establish a reliable brand identity.
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Tailor Brands provides various services, such as logo design, business card creation, and social media account management, to ensure your brand stands out. Furthermore, Tailor Brands provides various design materials and tools to assist businesses in creating and customizing their own branded assets.
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Northwest Registered Agent
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Northwest Registered Agent is an online service that offers a range of tools and resources to help sole proprietors, small business owners, and startups thrive.
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They assist in various business services like compliance management, document filing, registered agent services, and personalized guidance.
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Furthermore, Northwest Registered Agent provides services for organizations such as LLCs, and NGOs. Their commitment to quality and exceptional customer service makes them a reliable partner for businesses of all sizes.
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Incfile
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Incfile is a company that specializes in offering affordable and speedy business formation services. They offer various packages, including registered agent services, compliance monitoring, and filing documents.
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Thanks to their user-friendly and well-organized platform, the business registration process is straightforward. Incfile also provides resources and ongoing support to help businesses grow and comply with regulations.
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With a focus on accessibility and cost, Incfile is an excellent option for entrepreneurs looking to start a new venture or register an existing one.
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Other Ways to Register Your Business in the US
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Register with Federal Agencies
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To establish a legal entity, businesses usually only need to obtain a federal tax ID and do not have to register a business with the federal government. However, small businesses may register for trademark protection or tax-exempt status.
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The United States Patent and Trademark Office can assist in trademarking a business, brand, or product name after the business has been formed. For nonprofit corporations seeking tax-exempt status, registration as a tax-exempt entity with the IRS is required. Filing form 2553 with the IRS is necessary to form an S corp.
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Register with State Agencies
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To do business, regardless of whether your company is a corporation, partnership, limited liability company, or nonprofit corporation, it’s typically required to register with each state where you operate.
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Being considered as doing business in a state generally depends on certain factors.
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Do you have any employees that work for the government?
You go to the state often to meet with clients.
Some states require you to submit paper paperwork in person or by mail, while others allow you to register online.
Your firm has a virtual office in the state.
The state contributes significantly to your company’s bottom line.
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Most states require you to complete registration with a business agency, business bureau, or the secretary of state’s office.
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Register with Local Agencies
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Generally, it’s possible to begin operating your business without registering it with local or county authorities. However, if your business is structured as an LLC, corporation, partnership, or nonprofit corporation, you may be required to apply for licenses and permits.
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If you use a trade name or alias, you may need to register it with specific counties or localities. To find out what is required for registration, licensing, and permits, it’s necessary to consult the websites of local government entities, as they establish the guidelines.
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Benefits of Registering Your Business
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Although not mandatory in the US, business registration offers various benefits that should be noticed. Through registration, you can know:
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What you’re obligated to report.
Who’s in charge of running the company?
The potential write-offs you have.
Your current tax rate(s).
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Find Out If You Need to Register Your Business
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The business registration process depends on your location and the type of company you have. Once these factors are determined, the registration process is straightforward. Sometimes, small businesses can register a business name with state and local government authorities.
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However, in some situations, registration may not be necessary. Registering may not be required if you operate under your legal name and as an individual. It’s important to note that failure to register a business may result in losing personal liability protection, legal benefits, and tax advantages.
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Do I need to Register an Online Business in the US?
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Online businesses are held to the same legal standards in the United States as offline businesses. As an online business owner, you must decide whether or not to register a business.
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Sole proprietors and general partners are not required to register, but corporations, limited liability partnerships, and limited liability companies are.
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It’s essential to consider your location and goals when deciding whether to register your online business, as registration may provide more credibility for your products or services on a national or global level.
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In today’s digital age, consumers are savvy and tend to do their due diligence before buying anything. Adding a company suffix such as “limited,” “incorporated,” or “corporation” to your business name may increase credibility with potential customers.
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To ensure you’re on the right track, seeking guidance from registration services like ZenBusiness, Swyft Filing, or Tailor Brands may be beneficial.
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Steps to Register a Business – Frequently Asked Questions
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What Do I Need to Register a Business in THE US?
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The process can be relatively simple if you’re looking to register a business in the US. The first step is selecting a name for your company, followed by choosing the state you want to incorporate. The registration paperwork and fees required for registration may vary depending on your chosen state.
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What Is the Cost of Forming a Business in THE US?
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The cost of forming a business in the USA varies from state to state, typically ranging from $250 to $1,500. To determine the actual expenses of establishing a business and filing the paperwork, it’s best to consult with local authorities.
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How Can a Foreigner Start a Business in THE US?
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The procedure is the same for foreigners who wish to register a business in the US as for US citizens. Depending on the terms of your visa, it could be helpful to form a corporation or an LLC so that the business can exist independently of you while you are out of the country.
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Can a Non-citizen Start a Business in THE US?
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The United States isn’t called the “land of opportunity” for nothing. Most states don’t demand business owners’ US citizenship or residence to launch a company there.
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Bottom Line on How to Register Your Business
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The registration process in the United States can be daunting, especially when completing crucial documentation that could impact the success or failure of your business. However, with proper knowledge of the steps and following a simple procedure, you can manage your stress and successfully register a business.
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ZenBusiness is a highly recommended provider for those needing registration services that can assist with all aspects of company management, including licensing, permits, and required filings.
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