Whenever people decide to start a new business or business they need to follow certain rules and regulations. He always advisable to perform all the steps according to the respective laws. If everything is done according to the correct procedure, it helps to avoid problems later. The same process applies when registering a company. The registration of a company has a number of advantages. After registration of the company or a complete business it acquires independent legal identity. This led to provide a layer of security for personal property of shareholders. This means that in case of company debts, the personal assets of members of society will not be considered. However, the recording process increases the paperwork and costs that can become extremely important in the case of a sole proprietorship or partnership. The first step in the registration process relates to the determination of the legal structure of the company. Different structures have their financial, legal and tax respectively. Therefore, when deciding on the legal structure of business people need to consider a number of factors, including the companies’ vulnerability to lawsuits, financial needs and the level of control they want have on their business. All registration requirements upcoming determined only after the decision on the legal structure
The next step to register a company is deciding on the legal name of the company. In the case of single trade, the full name of the business owner becomes the company name. If the business is a corporation, the legal name of the company decided according to the partnership agreement. For limited liability companies, the legal name is the one who registered with the State Government concerned. The legal name of any business is extremely important because it appears in all the applications and government forms, including licenses and permits and request tax identification of the employer. Employers need to need an employer identification number (EIN) is also known as the SS-4 form and employer tax identification number. In addition, a need also to get the IDS fee and allows the revenue agency to its respective state. If the company relate to the sale of products and the company requires to collect sales tax. To this end, a license to sell or a seller’s permit fee must be acquired from the local government or state. Most companies require specific business license or permit to legally become operational. Usually, most small businesses need to obtain a specific license to operate in the industry or general business license and local agencies of the State.