A business must be registered by law. This type of registration informs the general public about the business’ owner and operator. When you register a company, you assure that no other entity with a similar structure may function. When it comes to business registration, you have several options, including:
- Register the business model and conduct business under the registered name
- Apply for a do business as (DBA) name
- Trademark the firm name
Benefits of Registering Your Business
When establishing a corporate structure for the business, you will come across a name for the business you like to use for formal purposes. The fundamental role of business name registration requires you to present your business name to your city for inclusion in their business name registry. In two instances, it is beneficial to register your business name:
- If you’re considering starting a business but are unsure of the appropriate legal structure, then register your business name. Of course, you may change your mind later, but the registration process secures your name, preventing it from being used by anybody else until you complete the business formation process.
- If you’re establishing a sole proprietorship, you should register your business name with the city, as sole proprietorships cannot be created in any other way.
How to Register Your Business?
- One of the easiest ways to register a company name is to establish its structure at the local scale; this ensures that the owner retains ownership of the company’s name, allowing them to conduct business under the registered name. To do this, you must register the business as a limited liability company, a nonprofit organisation, a corporation, or a limited partnership (LP), among others.
- You may only use a company name that’s not identical to the name of an existing corporation or business. Before May 2012, several firms with the same name were permitted to operate as long as they were established in distinct states and territories. This is no longer permitted under the provisions of ASIC’s national registry. If an identical company name already exists, you will be unable to register it.
- The procedures for registering a company structure vary according to the structure you pick and the city you register it in. The same set of rules governs both LLCs and LPs. These restrictions must be examined because they vary by state.
- Select a business name and verify that it conforms with applicable local regulations. Suppose you wish to register your business as an LLC. In that case, the business’ name must contain the terms limited liability company, limited company, or something similar—for instance, Mandys Heating Limited Company or Mandys Heating and Cooling LLC.
- You must then file paperwork and pay the necessary fees. Finally, when completing paperwork, you will almost certainly be asked to submit “articles of incorporation,” which detail the purpose of your business and its operating agreement.
- Depending on the jurisdiction in which you register your company, you may not require an operating agreement. Having one, however, is always a good idea because it provides security for your business and guarantees that its activities adhere to its standards. The operational agreement establishes the ownership percentages and management structure. If you do not have one, your corporation must adhere to the general regulations of your jurisdiction.
Nowadays, the whole incorporation process is conducted online, which simplifies the process. By registering your business, you safeguard your brand as a legitimate entity, and this enables you to conduct business and sell items properly worldwide. Therefore, if you are contemplating starting a business, you must register it immediately; failing to do so may result in legal consequences.