Looking to get your new business “set up”?
Starting a business requires a name, right? Of course, it does. Every new business needs a name to represent it. The setup and filing of certain legal documents give your business a registered name of its own while being legally set up.
With our legal setup resources and options, you will learn why you need to legally register your business along with the in’s and out’s of how to get that done. Not only to get it done but ensure that it is done right and professionally. Every new business needs a name and is registered legally, so get started by learning and buying the service to get it done.
This page is only going to discuss the benefits, resources, and options for the formation of a legal business structure. If you are going to start a business, you might as well go all in and pass any sole proprietor setup.
* MyWants Inc, its writers, affiliate, or any third party partner of MyWants Inc or MyWants.biz is not legally responsible for your choice of how you go about registering or naming your business. MyWants Inc, MyWants.biz, is not making any legal recommendations based on the content on this page.
Going through the process of setting up your business to become a legal entity can be a little scary. Are you doing it right? What if you mess up? Are you really protected? The benefits are worth any pain it may be to get this done. However, the process is probably much easier than you think, and the benefits outweigh any trouble or difficulty.
Below are the benefits of forming a legal business structure, LLC or Corporation.
- Liability Protection. Protect yourself from personal liability with the formation of an LLC or Corp. This formation allows for limited liability from business debts and obligations. The business is it’s own entity and can be sued directly while protecting your personal assets (house, savings accounts, etc.).
- Personal Separation. As mentioned above, the formation of a new legal business structure creates a new entity. This means that the business is kind of like a person in some ways. It can own things, buy, sell, etc. The business is independent of the owner/founder.
- Heightened Credibility. Simply having the term “LLC”, “Co”, or “Inc” behind a business name adds credibility. These are a statement of legal setup and gives a sense of legitimate operations.
- Deductible Expenses. Both corporations and LLCs may deduct normal business expenses, including salaries before they allocate income to owners.
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Business Formation Options
- Name Protection. Creating a legal structure helps protect the name of your business. By registering your business, you are stopping another business from registering a name similar to yours within your state. If you want U.S. wide protection, you will have to file for a federal trademark.
Your willingness to take the steps. Many new and small businesses stay operating as a sole proprietorship. Although this is the easiest and quickest way to get started, it does not offer any liability protection. You, and you alone are the business. If anything happens you are responsible and your personal assets are at risk. Just because it is easy to be a sole proprietor doesn’t mean you should not take the proper steps in protecting yourself and your business.
State filing fee costs. Each state has their own filing fee even if you did all the application documentation and filing yourself. Depending on your state, this will cost $50 to a couple hundred dollars. If the basic state filing fees are an obstacle, then you may want to reconsider taking your sole proprietorship business or start up idea to the next level.
Avoid having improper setup and filing. Although it is very possible and somewhat simple to set up a business on your own through most Secretary of State office websites, consider a professional. You can have your company professionally set up and registered for as little as $69. If you go at it alone, you run the risk of doing something wrong or insufficient.
*DO THIS FIRST! – No matter how you go about setting up your business, you should have a good understanding of the different types of business structures. To determine the right structure for you, we think you should learn about the 6 major types of structures from the SBA on their page, Choose Your Business Structure.
Read About Choosing Your Business Structure – Before having someone set up a business structure for you, please spend a little extra time learning more about that options they have and how they work. Understanding is key to knowing where your business will stand with legal and tax implications. Below are some of the resources we think you should read before starting yourself or hiring someone.
Do it Yourself Business Setup – Some of you may want to take on the challenge of setting up your business legally by yourself. Here are some resources for you “Do It Yourselfers”.
Take a course on business setup.
Business Legal Setup Videos
Exploring the Differences: LLC’s vs Corporations.
Learn how to choose the right type of entity for your business. We briefly explain the advantages and disadvantages of the two most popular formations, the Limited Liability Company and the Corporation.
Where Should You Incorporate.
Which state is the best state to incorporate? Get the facts about incorporating in another state vs incorporating in your home state.
What Is a Registered Agent?
Find out what a registered agent is and your options for choosing the right one for your business.
Make sure that you have or obtain the following skills to purchase a legal business setup service.
- Knowledge of business structures
- Reviewing and choosing a service option
Do it Yourself
Make sure that you have or obtain the following skills to form a business entity yourself.
- Knowledge of business structures
- Thorough in documentation
- Very organized
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