Are you getting ready to start your own business in the near future? It’s a very exciting time when you are planning a new business venture. Â Coming up with a business name, business card, website or social media accounts, and most especially the services or products you will offer can be quite taxing and time-consuming.
But all the time spent on that should not make you forget one of the most important things, and that is to apply for a business license. You cannot legally conduct your business unless you are issued a license by the state where you want to operate. There may be some differences in the requirements for a business license, depending on which state you are applying, but take a look at the list below for what you need to prepare when you apply for a business license.
- Business name – you need to come up with a business name that is unique and catchy. It is your business name that you will put on your license so you want to take some time to think of one. You also need to make sure that there is no other business with that name. If your business is just a small one, it might be that registering your business is as simple as registering your business name.
- Social Security Number – in the case that you will be the sole proprietor of your business, you will not need to get a tax identification number for your business as your own social security number may suffice. This is usually the case when you are starting a business from home and you are the only employee as you are the one making the product. If you do not yet have a Social Security Card, you can get the assistance of Application Filing to help you.
- Employer Identification Number – as stated above, you only need a social security number for tax purposes if you are the sole proprietor. But if you are planning to hire employees for your business, you will need a tax identification number or Employee Identification Number. The EIN is necessary because it will be the one used when the employer will pay taxes on behalf of the workers hired by the business.
- A business structure – it is important to determine the type of business you will have as it will affect so many things. It will not just affect all the paperwork that needs to be filed but also the taxes you pay. Although it is possible to change your business structure in the future, remember that there might be some restrictions. Some common business structures are a sole proprietorship, partnership, Â and limited liabilities company (LLC). Make sure to do your research on the differences in the business structures.
- State Tax ID – depending on the location, some states may require that you also pay state taxes. It would be best to check with your state website to confirm whether that is something you need to apply for.
