Registering Your Business
This is a high-level general overview and not legal advice. Please consult with your legal and tax professionals when deciding whether and how to register your business.
While each state has its own rules, most states do not require a sole proprietor to register the business if they are operating under a business name that includes the sole proprietor’s name. An example might Jack Smith Gardening Services assuming the owner is Jack Smith. Whether or not it is registered, the business must company with all local business laws related to business licenses, permits, liability requirements, bonds, taxes, etc.
Businesses that are not sole proprietorships are required to register in most states. One of the benefits of registering your business and following the required procedures is some level of liability protection. Some common business forms include Limited Liability Company (“LLC”), partnership, and corporation. Each of these has different advantages and disadvantages that you should evaluate in the context of your business and exit objectives.
It is worth noting that if your business operates across state lines, there may be registration and reporting requirements in some of those states.
A business can be registered in another state. For example, it has been common practice for corporations to register in Delaware. Check with your legal and tax professional as to whether it is helpful for your business to be registered in another state.
Registering your business helps build a brand name though you may need to file trademarks and copyright for the material you may use to differentiate your business. Whichever form you choose, adhering to governance standards is important to maximize owner protections.