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How do you legalize your business

How do you legalize your business

"We'll try to cooperate fully with the IRS, because, as citizens, we feel a strong patriotic duty not to go to jail."
Dave Barry

How do you legalize your business?

THE ONLY WAY TO LEGALIZE IT, IS TO REGISTER IT!

After setting up your location, equipment, and inventory, the first thing to do is to officially register your business as a legal entity for business income tax, sales tax (if applicable), employer tax(if applicable), and business tax registration as described below:

WHY REGISTER IT?

Because, the government taxes your business based on your type of business LEGAL TAX ENTITY BUSINESS STRUCTURE (4 entities: sole proprietor, partnership, Limited Liability Co (LLC), or Corporation).

WHY AM I TAXED?

Because the IRS has determined that ANY income/profit or financial gain FROM WHEREVER AND WHATEVER SOURCE DERIVED IS TAXABLE INCOME TO A PERSON OR BUSINESS. Folks, even drug money, credit card rewards, coupons, and even PRESENTS ARE TAXABLE!

THAT SAID, YOU NEED 2 TO 5 GOVERNMENT REGISTRATIONS
DEPENDING ON WHAT YOUR BUSINESS IS DOING (trade, service, large, small, location, etc.).

1. REGISTERING YOUR BUSINESS STRUCTURE


In order to legalize your business, you must first register it as a legal tax structure. This means that you have to choose to be a sole proprietor, a partnership, an LLC (limited liability company) or a corporation.

2. HOW TO REGISTER YOUR BUSINESS STRUCTURE

To register as one of these, you will need to file a certificate. For example, if you register as an LLC, you will need to file an LLC certificate at the state level and execute an LLC operating agreement as well as get an EIN (Employer ID Number) as its tax ID number.

3. FILING AS A SOLE PROPRIETOR OR PARTNERSHIP

If you file as a sole proprietor or partnership, you will need to register the business name. For example, if you call your business "Super Joe's Handmade Crafts," or # "Two sisters Catering Service," you will be doing business as that name, and you need to register that with a Doing business as (DBA) certificate and get an EIN for that business number to be its tax ID number.

4. GET LICENSING FOR YOUR BUSINESS

Once you've registered your structure, then you will need to obtain a business license because any business is, well, a business and all businesses need a BUSINESS license.

5. SALES TAX REGISTRATION

After that, you will need to obtain a seller's permit if you want to buy anything wholesale or if you sell anything at retail. For example, you are an artist, and you sell your art on the streets. Art items are taxable, and you need to charge sales tax, so you need to obtain a seller's permit.

6. EMPLOYMENT TAX REGISTRATION

If you hire employees, you will need a STATE EIN, AND A FEDERAL EIN.

7. SUMMARY

So, register your business as a structure with a certificate and get an EIN. Get a business license. Register for sales tax (if required) with a seller's permit and finally, get a state EIN if you will hire.




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Important: Mention type of business, # of owners,
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expressdba registers,files and pays for filing fees and also provides information and filing legal forms and ways to help you file documents or register your business as self-help services and as ordered by you but is not affiliated with the federal,irs,state or local government agencies nor a law firm or cpa firm. expressdba is a private filing agency providing Business registration services business license tax id llc incorporation local federal statefederal sellers permit or resale licensedba filing These agencies may or may not charge you to file these documents but expressdba charges a fee to help you register your business. expressdba is not a law firm or a substitute for an attorney or law firm.

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