Every year several people are deciding to open up a new business. So, if you are also among them, then you should follow all the legal steps to make your business legal. The first and foremost thing while opening any business is to get all the required licenses, registration, and permission to operate the business successfully. You should first determine all your legal structure of the business and consider all the things including your financials, legal situations, tax id applications, registering as an LLC or an S-corp, as well as applying for employer identification number (EIN).
All your legal structure depends on the likelihood of all lawsuits and your control. If you are still confused and not clear about all the legal structures to be organized, then here we are presenting some essential legal steps that are required to maintain for your business purpose.
Now, the first thing that you can go to is the Employer Identification Number (EIN) for your business. You can apply for this either through mail or online or by fax or in fact by phone also. Companies can easily apply for EIN online by using the EIN online service. You just need to go to the EIN website and fill out the application form, do the required verification and submit the correct form. One IRS will check it for all the correct information, EIN will be them issued for your business. You can also follow the previous old fashion by sending your EIN application by mail. However, it would take some time near about four weeks. Also, you can fill out the SS4 form and send it to your IRS state fax number. Lastly, you can also go for the EIN application by phone. This route is being used by most of the tax-payers as it is very quick. You just need to call a toll free number; they will take down all your details and will give you the number over the phone.
Another part is creating an LLC. Now, form an LLC sounds intimidating but if you know how to create an LLC by knowing the proper facts, you are halfway there already. The steps towards forming a Limited Liability Company (LLC) are really simple:
- You have to select a unique business name not taken by any other business owner. The name must consider the state’s regulation with the appropriateness of the name.
- Create an operating agreement. This will describe how your business will run and what the responsibilities of each LLC member are.
- File the “Articles of Organization”. There will be some fees/charges for filing.
- Publish notice which is required for some states that you target to form an LLC.
- Get all the essential licenses and permissions to start your business operation.
Now to start any business or to create LLC for your business, the most important legal step is to pay the tax properly. So, you have to go for the Tax Id Application by knowing all the different categories and essential benefits from it.