Do I need to register my business in my state?
In the US, if you don't setup a Corporation or LLC you will, by default be running your business as a sole propietorship. In order to open a bank account under your business name you will need to register a DBA (Doing Business As) with your state. Most states also require you to obtain a license or registration to conduct business. In states such as Florida you must register at the state, county and local level. For specific information regarding the licensing requirements in your state visit the Small Business Association for a list of state licensing offices.
So you may be thinking that you only have a little website and you don't need to worry about registrations and licenses. Well, if you plan on generating income from your "little website" then you must follow your local licensing requirements because as stated early, you are by default a sole propietorship. If you are a sole propietorship conducting business in your state then you must follow your state's business registration and licensing laws.
There are some benefits to running your business as a sole propietorship but the biggest is that you don't have to do anything special to set it up and you can report your income and expenses to the IRS on a Schedule C with your personal tax return.
Setting up a sole propietorship is an easy way to get started but be sure you explore all the possibilites as your business grows. You may discover that converting to an S Corporation or LLC would be a wise investment for your small business. This is a matter you should discuss with your attorney and/or accountant so you can discuss your specific circumstances.
DISCLAIMER: I need to give the standard disclaimer that I am not a lawyer or an accountant and I encourage you to consult a business attorney and account for all of your legal and accounting advice. Any information provided in this article is not advice and Merimax, Inc. and InternetBusinessAnswers.com are not liable for any decisions you make based on this information.
1 Comment on Do I need to register my business in my state? »
August 20, 2007
Debbie @ 8:58 am:
I recently came upon a company that is based in Airmont, NY and you can obtain over 50,000 applications for permits, business licenses and tax registration….. They have every city, county and state form from all over the United States of America! Their website is www.businesslicenses.com
Enjoy and Good luck!