Whether you operate an industrial unit, run a bar, or own a lavish eating house, registering a company online in the USA is vital. It requires adhering to various key steps, including selecting a business structure, choosing an apt state, knowing legalities, arranging paperwork, filing applications, and so on. Only after registering your entity with a concerned authority, you will be able to run your business. With that being said, let’s delve into how to register a company in USA online. Additionally, we will also take a closer look at documents and post-registration compliances.
How to register a company in USA online: A 9 Steps Guide
The steps on how to register a company in USA online are illustrated below:
Step 1: Select a Business Structure
Selecting an apt legal business structure is the first step in this registration process. You can choose from various options, including LLCs, sole proprietorships, and corporations based on:
- Compliance threshold
- Applicable taxes
- Management requirement
- Operation
- The industry you are serving
Take time to weigh each structure against these parameters. It will help you make an informed decision.
Step 2: Pick an apt state for registration
After finalizing the business structure, state selection is the next crucial step. Each state has distinct regulations concerning registration processes and operational norms. Hence, knowing state-specific norms is vital to staying compliant. Prefer selecting a state that simplifies the business journey by imposing minimal compliances and taxes. If you encounter trouble finding one, let Adviso be your registration partner.
Step 3: Select a Business Name:
After selecting an apt state, this step involves selecting a valid company name. To check whether or not the selected name is valid, contact the Secretary of State’s office or a similar authority.
Step 4: Register the Business Name:
If you wish to run a business under a name that is professional and does not resemble your name, file a Doing Business As” (DBA) name registration with a respective state or local authority.
Check out our web stories: 5 Steps To Start A Sole Proprietorship in The USA
Step 5: Designate a Registered Agent:
To avoid registration hassles and legal hurdles, you can contact a professional agent or firm like Adviso to fulfill the registration formalities. An intimation must be given to the concerned authority regarding the appointment of an agent.
Step 6: File Articles of Incorporation/Organization:
Draft and arrange the founding documents such as:
- Articles of Incorporation for corporations
- Articles of Organization for LLCs
Make sure to file these documents with the Secretary of State’s office or equivalent state agency.
Step 7: Open a bank account
Opening the current account in a designated bank is a crucial step in the registration process. It will help you perform financial transactions seamlessly and pay taxes and any legal hindrances.
Step 8: Register with the State Department of Revenue
Since your firm will generate revenue in the future, a certain tax stab will applied to the same. Registering the State Department of Revenue is a mandatory step for registered entities operating across the United States.
Step 9: Secure Industry-specific approvals
Obtaining industry-specific approval(s) is as important as securing the company registration in the US. Depending on which industry you serve, you must file with the respective authority, requesting for getting legitimized and recognized.
Documentation Consideration for registering a company online in the USA
Knowing the process of how to register a company in USA online is futile unless you are aware of the required documents. Here is a list of documents that will play a vital role in the registration process. Please note the document required may vary depending on the industry and state you select.
- Articles of Incorporation or Certificate of Incorporation
- Bylaws or Operating Agreement
- Employer Identification Number (EIN)
- Business Name Registration
- Business License
- Registered Agent Agreement
- Initial Board of Directors Resolution
- Stock Certificates (for corporations)
- Annual Report
- Compliance with State-Specific Requirements
Know the Different authorities and Actions required
Authority | Action Required |
Internal Revenue Service (IRS) | Obtain Employer Identification Number (EIN) |
State Secretary of State Office | File Articles of Incorporation or Certificate of Incorporation |
State Department of Revenue | Register for State Tax Identification Number |
Local County/City Clerk’s Office | Obtain Business Licenses and Permits |
United States Patent and Trademark Office (USPTO) | Trademark Registration (if applicable) |
State Department of Labor | Register for State Unemployment Insurance |
State Workers’ Compensation Board | Register for Workers’ Compensation Insurance |
Local Zoning Department | Zoning and Land Use Permits (if applicable) |
State Business Licensing Agency | Professional and Occupational Licenses (if applicable) |
State Corporation Commission | Designate and Register a Registered Agent |
Post-registration norms and penalties for non-compliance
Now you know how to register a company in USA online, it is important to be aware of the post-registration legalities to stay compliant. The table below entails the mandatory operational norms to run the legal establishment in the US.
Description | Frequency | Penalty for Non-Compliance |
Filing of annual report detailing business information and updates | Annually | Late fees, administrative dissolution, loss of good standing |
Maintain a registered agent for service of process | Continuous | Administrative dissolution, inability to receive legal documents |
Payment of state franchise taxes | Annually | Late fees, interest, loss of good standing, dissolution |
Renewal of necessary state and local business licenses | Varies (Annually/Quarterly) | Fines, penalties, suspension of business operations |
Documentation of minutes for annual shareholder and director meetings (corporations) | Annually | Risk of legal disputes, loss of liability protection |
Preparation and retention of financial statements | Annually | Increased scrutiny in audits, potential fines |
Filing federal and state tax returns | Annually | Penalties, interest, potential audits, and legal action |
Compliance with federal and state employment laws (e.g., payroll taxes, workers’ compensation) | Continuous | Fines, penalties, legal action |
Reporting any significant changes (e.g., address, directors, officers) to the state | As needed | Fines, administrative dissolution, legal complications |
Maintaining required business insurance (e.g., workers’ compensation, general liability) | Continuous | Fines, legal liability, suspension of business operations |
Compliance with local, state, and federal environmental regulations | Continuous | Fines, legal action, potential business closure |
Compliance with data protection laws (e.g., GDPR for businesses dealing with EU citizens) | Continuous | Fines, legal action, reputational damage |
Renewal of trademarks and other intellectual property | Varies (Every 5-10 years) | Loss of trademark protection, legal disputes |
Conclusion
Hopefully, this take on how to register a company in USA online will help you meet your goal. In case, if you think there are some areas left unattended, let us know; we will be glad to cover those. Additionally, if you wish to avoid registration complications, you can contact Adviso’s professionals without any second thought.
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