Have you just started your business? Starting a new business is like an exciting adventure but there are many things to take care of before diving in. Do you know the most crucial step for making your business a legal entity? Registration of your business is the most essential step that allows you to grow your business as an official brand. You can save time and frustration by registering your company whether you have a big brand or a small local shop. In this guide, we’ll discover all the documents a brand needs especially if they are in the beginning stage.
Operating Agreement (for LLCs)
LLCs(Limited Liability Companies) need to have an operating agreement. The people who own the business agree on this agreement which shows who the business will execute. This is a partnership agreement between two parties in which they agree to take action with mutual understanding. This agreement contains the details of what will they do if someone leaves or another person from the outside buys their company and how the profits and losses will be shared.
Employer Identification Number (EIN)
IRS provides an EIN (Employer Identification Number) to a business similarly to people who have social security numbers but the difference is EIN is for businesses but SSN is for individuals. This number is used If the company wants to partner with or plans to work as a corporation and also helps to identify your company for tax purposes. If you want to open a bank account for your company or file taxes you need this number even if you newly start your business and have no employees yet.
Certificate of Incorporation
This is the document that has the details of the company when they officially start their business activities. When you register your business government or relevant authorities that have the same domain as your business has issued this document. This represents that your business is legal moreover startup incorporation is essential for protecting your personal liability and securing investment. The businesses that have this can enjoy the legal benefits provided by the government.
Bylaws (for Corporations)
As the name implies, the bylaws of a corporation describe how the corporation operates and manages. It’s like designing a roadmap for future decisions, such as how the company will operate or how meetings will be organized. The purpose of these rules is to make sure that the company will run smoothly without any interruption.
Business Name Registration (DBA – Doing Business As)
Most of the big brands use DBA (Doing Business As) to enhance their branding. DBA allows businesses to use a second name instead of the original one if they think the name is not so catchy. For example, Sara opened a tech company and registered it with the name “Sara Enterprises, LLC,” but she wanted to use the name “Sara Solutions,” so that’s where DBA comes in to do this.
Stock Certificates (for Corporations)
Representing the company as a corporation, stock certificates are used. It is the written proof that shows how many shares a company has and which person has ownership of the company. With the help of this certificate, other investors can easily invest in your company and represent themselves as part of your company.
State-Specific Forms
Any business that wants to register themselves with the state where they are doing their business activities. It’s a crucial step for anyone who wants to work in a specific state, so with these forms, the state has information about the services and the products they sell. The goal of these forms is to align the business with the state’s given instruction.
Registered Agent Information
At the beginning stage, nobody wants to invest money to ensure their physical existence in every state. How does a company receive legal documents if they don’t have an official office? Most startups collaborate with the agents that are living in the state where they are selling their product, so when the government sends any legal notice, they receive that on behalf of the company.
State or Local Business Licenses
You need special licenses or permission from the local government or state before starting your business there. Incorporating these documents gives you access to legally operate where you are located. For example, if you have a construction company, you need the construction licenses that represent that you have the right to do construction work.
Foreign Qualification Documents
Doing business in one state and want to confirm your existence in other states as well, so for that purpose, you need foreign qualification documents. Your company must be officially recognized in those states where you are providing or selling your services, and you will only do this if you have these documents. Can a company operate in other states without having these papers? No, the purpose of foreign qualification documents is to legalize your business in other states where they are also available.
