7 Things to expect when registering your new small business start-up

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There are so many things to focus on when starting your small business. You need to think of a target audience, marketing strategies, social media and web platforms, services and products you plan to offer, and so many more aspects to keep track of.

When you start your business, it is also essential that you register your business for an Employer Identification Number, or EIN, and register with your state’s Chamber of Commerce. Some registration formats will allow you to recuse yourself from registering, especially if you are a sole proprietor for your business, but that doesn’t mean you shouldn’t carefully read through the exclusions and exceptions to registering for either your EIN or with your Chamber of Commerce.

If you find yourself not needing to register your business with the state’s Chamber of Commerce, you might consider drawing up your own contracts, like through The Contract Shop or Amira’s legal bundle, to protect your small business start-up. While registering your business might not protect your business fully, it will legitimize your business to your community.

If you are still struggling defining your business, CREATE An Intensive Biz Playbook & Planner: Scale Your Online Business, Create Explosive Growth and Build a Brand You Crave by Meera Kothand can clarify many of your business’ blind spots. I’d recommend completing her workbook before registering your business for an EIN or with your state’s Chamber of Commerce so you’ll know more than enough information to start your business on the right footing.

It can be overwhelming when thinking about what you need to get done when starting a business. An EIN and registering your business with your Chamber of Commerce are set to help and legitimize your business to your community.

Here are some of the things and steps you will have to take when registering your business and applying for an EIN.

EIN

An EIN is similar to your Social Security Number but solely for your business. You might be the sole proprietor of your business, but an EIN allows you to have an alternative when submitting taxes compared to using your social security number.

An EIN is useful to have when starting your business for many reasons, both for taxes and creating business bank accounts among other things. Here are a few things to have handy when registering for an EIN.

Your Business Name, Title, and Type of Business

First, out of the gate, the IRS will ask what type of business structure your business is under. The most common for business start-ups are a sole proprietor or limited liability company. A sole proprietor is considered as a basic business structure while an LLC is considered a formal business structure.

Then comes the fun part! Decide on a business name and your title within your company. This can be your name, a name that showcases your niche in your business, or you can even make it a bit obscure, like a ‘90s pop band.

I decided on Creatively Working a few years ago because Creatively Working encompassed what I wanted to do for businesses. It showed my creative incentives and that I would both work diligently and for businesses that I supplied services for. When my business was just starting, I knew I wanted to stay within a sole proprietorship and eventually change my business to a limited liability company if it ever grew.

Services/Products your business offers

I mention that you should know what services or products you offer for your business, but I mean you should know which services and products you will offer in a more general sense. You don’t have to know all of your services and what the prices are or anything of that nature. To learn more about setting up your services and how to market those services to your target audience, look into CREATE An Intensive Biz Playbook & Planner: Scale Your Online Business, Create Explosive Growth and Build a Brand You Crave by Meera Kothand.

When you apply for an EIN, you will be asked why you are registering your EIN, the primary activity your business revolves around (construction, rentals, accommodations and food, etc.), and more specific services you plan to offer. Try to be fairly specific when describing your services rather than generalizing, such as graphic design collateral for businesses compared to just graphic design services. Make sure to invest in contracts that also protect you, like those from The Contract Shop. That way your business will be financially and legally protected.

Registration Fee for your business’ EIN

It’s not cheap to register your business’ EIN. Currently, the finance fee is around $250 to register your business start-up for an EIN.

It’s not vital that you get an EIN right out of the gate, but it is helpful when you decide to add employees and setting up business bank accounts. EINs are helpful for many reasons for businesses, especially when it concerns your finances and your accountant, so you will need one eventually, but maybe include it as one of your first expenses with your first round of income.

You will also need to know when your business started and your accounting year-end. Your accounting year-end will be about 12 months from your acquisition date. I started my company in December so I would note my accounting year-end to be November. Typically, your fiscal year will end at the end of the month of your accounting year-end, no matter what date you acquired the company on.

Related Content: (Work)book Review: CREATE

Registering with your State

Registering your business within your state is usually found on your state’s Chamber of Commerce department’s website. If you haven’t become accustomed to that site, you should check it out at your earliest convenience. I’ve found that many have valuable resources in helping start your small business.

Some cities will also have you register with your local Chamber of Commerce but it is entirely up to your local government to decide this. You might have permits that are required for your line of work, which needs to be issued by your local or state government. Most cities will require that you have certain permits but they will be issued at the state level.

Permits required for your business

Permits are not free. Most of the time, permits are dependent on the trade or industry you are working within, such as alcohol, tobacco, or cannabis industries. Regardless of the type of permit, most will need renewals every year or two.

If you plan to sell products, you must register for a sales tax permit for most states. Generally, services; like personal fitness or photographers, don’t have to have special licensing but some amenities might require other permits; such as pools and food handling. If you don’t need a permit for your small business, you might consider drawing your own contracts, like those from The Contract Shop, to protect your business’ services.

Other industries; like food, alcohol, and health care, need permits for their specific industry to perform those tasks.

Taxation brackets for your business

While registering your business on the state level will not determine the amount of taxes you will pay, it will help you determine how and what taxes are taken out of your business’ earnings.

In my state of Oklahoma, you are not required to file with the state if you are a sole proprietor for your business because it is considered a basic business structure. You still might have to register your business if it revolves around certain industries, like tires, tobacco, alcohol, or vendors. If you are withholding taxes or need to apply for sales tax with your company, you will also be required to register your business with your state’s Chamber of Commerce department.

If you are registering your business as an LLC, you are registering your business under a formal business structure and must file with your state’s Chamber of Commerce. If you decide to register as an LLC, you will also have to have an EIN to complete your paperwork.

Location(s) for your business

You will need to know where your business will be located. Even if you are working from within your home, you will need to have both physical and mailing addresses handy. Having the locations of your business might not seem like a big deal but you will need to have them kept up-to-date. You can change these if you move or work remotely.

Your mailing address should also be a physical address. While you can have a PO box for other entities, you should have a physical address for your registration.

Registration Fee(s) for your business’ registration

Business registration fees vary across states and are varied depending on your business structure as well. It can range between $50-300 to register your business as an LLC depending on the state you conduct your business within. When you are determining your expenses for your business start-up, CREATE An Intensive Biz Playbook & Planner: Scale Your Online Business, Create Explosive Growth and Build a Brand You Crave has a particular section devoted for keeping track of expenses and income for the first few months when you first start your small business.

As mentioned in the previous section, you might not have to register your business if you operate outside of particular industries and are operating as a sole proprietorship.

If you are operating within a particular industry, like rentals or food and beverage, you might be required to obtain certain permits, which will also require fees. Those fees, however, will only be in addition to the fees you are required to pay with your registration, but not at the same time.

Related Content: How to legally protect your small business start-up and money-making blog

Are you prepared to start your business once you acquire the correct permits, registration, and EIN paperwork? While these processes are numerous and can be lengthy, they are set to legitimize and legalize your business start-up.

Do you need any more recommendations or help setting up your small start-up business? Join my e-newsletter to receive tips and advice when starting your business.