So I’m often asked by small business owners whether they have to register with the state before they do business. The short answer is – it depends on your state’s requirements- but every business owner should. Technically all you have to do to go into business is provide a service or a product. However, a registered business holds tremendous advantages over a non-registered business. Three benefits of business registration include:
1. You can hire full time employees- A state identification number will allow you to deduct state taxes on behalf of your employees and pay them according to state laws.
2. You look “legit”- A business that is registered with the state provides some assurance to present and potential customers that your business is legitimate and they are safe doing business with you.
3. You can get loans, credit cards, and establish bank accounts- Financial institutions require proof of business registration when you apply for loans, lines of credit, or bank accounts. Lenders will want proof that you really are a business.
Business registration is simple, once you decide how to organize or incorporate (Inc? LLC? Sole Proprietorship?)… That decision, however, requires a seasoned business consultant like those on our team at Innovative Venture Solutions. Visit us at http://www.i-vsolutions.com/FREE-CONSULTATION-.html and request a free 30 minute consultation so we may discuss how we can help!