Share this article

Setting Up Your Business Legally

Each state requires all businesses to be registered and have a valid, up-to-date business license before any services are provided and before any invoicing or payments. Each state also has its own fees, restrictions, and requirements. In some states, just a single state license is enough. Other states require local county or city licenses in addition to the state license. The Small Business Administration (SBA) has a resource-intensive website with many valuable links and tutorials. They also fund programs in each state that provide free business consulting and mentoring. Search for your local SCORE (Service Corp Of Retired Executives), SBDC (Small Business Development Center), or Women’s Business Center (WBC). The Women’s Business Center helps anyone, not just women. In addition to free business counseling, they also have classes and local events. They can even help new businesses access the necessary capital they need. While these are federal programs funded by tax dollars, you do not need to be a US citizen to use these resources.

Decide on Business name and structure

Most new businesses start as either a Sole Proprietor or an LLC. The structure you use to set up your business will have legal implications, including asset protection. It is best to speak to a local business counselor, an accountant, or a lawyer to determine the proper structure for your business. 

Register for required licenses

Before registering for your business license, you will need to choose a business name and ensure it is not taken by another business. You can do a simple search on Google. If that does not give you any results, you can do a more in-depth search through trademark and licensing companies. You can ask a local business consultant or a lawyer for more information on that process.

Once you have the business name and have decided on a business structure, you will need to register your business at your local Secretary of State’s office. This can be done online. The link is sos.yourstate.gov (sos.alaska.gov). The registration fees vary by state and will be listed on the Secretary of State’s website.

Get EIN/Tax ID

EINs and Tax IDs are generally issued during the business licensing process on the Secretary of State’s website – sos.yourstate.gov. If not, contact your state tax authority or go to their website.

Recent articles