From the beginning, it’s important to know what type of business structure best fits your needs. This can ensure you complete the correct paperwork.
There are many business types, with four main classifications: sole proprietorship, partnership, corporation, and limited liability corporation (LLC). Within these categories, there are several ways to structure your business. Seeking professional advice could help you choose the best structure for your business.
Depending on the business type, your first step may be to register the name of your business in your state. Then, if applicable, apply for your Employee Identification Number (EIN). This nine-digit number is what the Internal Revenue Service (IRS) assigns to businesses, mainly for tax purposes.
If your business requires it, you must then register your business with any other relevant state or local agencies, such as a revenue office.
Once this is complete, consider opening a business bank account. Keep in mind that many banks require proof of registration and an EIN number.