Whether you are launching an entrepreneurial venture or growing an existing business, registering your company can help set your operation up for success. The process varies depending on the type of operation, size and state where you are located. Completing registration swiftly and accurately can also establish consumer trust, a key consideration for new customers and clients.
The cost to register a company is minimal, but fees vary depending on your state and business structure. You will need to submit a document called an articles of organization and an operating agreement (if required in your state). An operating agreement is not required for all LLCs, but it is a good idea to have one in place, as it outlines how key decisions are made and allocates ownership percentages. It also clarifies the legal separation between company assets and personal assets, making it easier to avoid any unwanted entanglements down the road.
A company is a separate legal entity, with its own liabilities and tax obligations. It is more complex to set up than other business structures and usually suits a larger business with more significant growth plans. Companies must have at least one director and a secretary, and must be registered for goods and services tax if it has turnover over $75,000. Directors must obtain a director identification number and comply with their legal obligations as officeholders.
Some states have online registration, and others require you to file paper documents in person or by mail. In some cases, you may need to register with the Secretary of State’s office, a Business Bureau or a Department of Finance. You can find information on the specifics of your state’s requirements by visiting your state’s website.