Building a business takes a lot of work but can also be incredibly rewarding for the business owner or entrepreneur. There is much to work through that is important to understand and be familiar with when starting a business.
Business owners will need to be sure they understand all of their tax obligations at the federal, state and local level. They will also need to determine what types of permits, licenses and other documentation that is needed and the requirements they much meet. It is also important to evaluate what is the best business structure for the business and which provides the best option for its growth and success.
The business formation process for a corporation is to file articles of incorporation in the state where the business will have its principal place of business. What is required for articles of incorporation can vary by state. Generally, however, they require the corporation’s name and address where it is principally located; the corporation’s purpose, broadly stated; the name and address of the registered agent for the corporation; and stock information for the corporation. It can also include information about directors for the company.
There are a variety of different business forms ranging from a corporation to a limited liability company, a partnership or a sole proprietorship. Each business form has requirements associated with it, as well as different tax obligations and benefits. It is important to be familiar with what each of them is and how they can help the entrepreneur establish their business.