How To Register A Home Based Business?
Whenever you start a home based business, there are many legal requirements attached to it. You will have to work on many aspects to make sure that the business you are running is legal.
First of all, if you are living at a rented place or apartment, you will have to ask your landlord if there is any prohibition on starting a home based business where you need to give people address or invite people over to provide products or services. However, some businesses don’t need any license or registration. Like if you are working as a freelancer to write content for people, you don’t need any registration. You can work as per your convenience.
However, there are many other home based businesses out there that require proper registration and licensing to fall under legal category. Registering a home based business sounds a scary thing but it is not. Though it is boring but it is an essential step for your business. These a few steps that you need to follow in order to get your home based business registered.
Name Your Business:
Choosing a fitting name for your business is very important step because you are going to carry on this name when your business becomes a brand in future. Think of some creative and catchy name. Make sure that it is unique and doesn’t belong to any other registered company.
Deciding a Business Structure:
Decide your business structure if it is going to be a sole proprietorship or partnership. Registering a sole proprietorship company is easier than registering a company with many partners.
If your business is an LLC, Partnership, or a Corporation you should contact your Secretary of State's office in your country to create and register your new business. It is also possible to create an LLC or corporation in another state, but then registration will be done in that state where you want to do the business. The state office will provide you information about all the paperwork that is needed.
Getting a Business License:
Next step is getting a business license. It can be done online through the websites in various countries and states. However, if such facility is not available then you might need to visit the office. Regardless the company type, all home based businesses need a license to operate. The representative at the office will guide you about paper work and procedure.
Getting a Business Name Registered:
If you are running a business by your given name, you might not need to register the company name. However, if you choose a different name then it requires separate registration.
Getting a Tax ID:
All businesses are required to pay federal, state, and local taxes, regardless of business structure. Getting a tax ID is an easy and free procedure. There are small business associations in different countries and you can get your tax ID easily through them.
After all these steps, you are good to go!