Congratulations you have taken the step and started your own business, this may seem like stepping into the world of the unknown but with a little bit of practice, even the most mind-boggling tasks will become second nature.
After the first initial nerves of getting everything ready, you need to register your business. This can be daunting at first as this may be the first time you are doing it, not just talking about it, but really doing it, the reality is it is really quite simple. You have done all the hard work; you have refined your original idea and made a business plan now we just need to make it official. In this piece, we will go through how to register your business online.
Ownership of the Business
When registering your business, you have to decide on the ownership of your company. There are 3 main ownerships and 2 others that it can be registered under depending on what your business is, who is running it and where you want the liabilities to fall. If you are not sure of what the best ownership category is correct for you to search for a legal and start up advice blog this will be able to point you in the right direction and it will be able to give you a good idea of the pros and cons of each business ownership type.
3 Main Types of Ownership
- Sole proprietorship. This is where a business is owned and operated by a single individual. Most small start-up businesses are categorized under this as there is only one person that owns and operates it.
- Partnership. A business that is owned and operated by 2 or more people this isn’t widely used as there are more legal documents that need to be worked out with who owns what of the company
- Private corporation. A business that is a legal entity created by the state, whose assets and liabilities are separate from its owners.
2 Other Types of Ownerships
- S Corporation. A form of ownership that is the best of both partnerships and corporations.
- Limited liability company. provides limited liability and is taxed as a partnership or sole proprietorship (depending on the number of members).
It is important to understand which type of business you are setting up as there will be earnings, tax implications and liabilities differences associated with each type of ownership. Once you have understood what category your business fits into, it is time to register it.
After working out the type of ownership of your business you then need to register it with your local tax authority. They will have a different link and portals depending on what you have chosen to use for ownership of your business. They will have step by step guides on how to do this but if you do get stuck you can always refer to your legal blogs as they may have specific instructions depending on your area, they will have the most up to date guidelines for you to follow.
Considerations You Will Need To Make
There are a few considerations that may take more planning that you may not have thought about. Where do you work? You may find that after a few months of trading you are ready to expand, you may need to start looking for a larger place of work renting commercial residents can be difficult so it’s always best to start looking into it before you need to move or expand.
Do you need special licensing or permits from the local authority to trade? Have you got insurance? If you are using your own car for the business, you may need to change your vehicle insurance policy.
Will you be taking on employees? This has many advantages but there will be a lot to think about making sure you are up to date with employee rules and regulations.
Be sure to keep a proper record of your spending and income, whether you do your own taxes or outsource this job you will need as much information as possible to ensure you don’t end up paying more than you should.
You are making your own way to becoming a business owner with hard work and determination you will be able to be completely aware of what needs to be done and when. Always look to the future and start planning for it, it may not happen straight away but always be prepared you don’t want to take any unnecessary risks or make any rush decisions that you shouldn’t have to. With our guide to registering your business, there shouldn’t be any shocks or unknown.