Registration for a company is a big move, and one needs to know the proper way to do so. There are a number of things that a person needs to be aware of while he is registering a business name. Here in this article, one can find some of the most critical points and a complete guide to registering a specific business name. One can easily get confused when it comes to different business related tasks such as how to calculate overtime in ca? Such points are needed to be taken care of.
With the proper business structure and complete registration, a company can run in a well-organized and legalized manner, making it easy for the business to grow.
Types of business structures
One must understand that there are numerous categories under which a business could be defined. If a person wants to register his company or his business name, then one must choose a specific category among these. There are different types of businesses which are named as –
● One Person Company (OPC)
● Limited Liability Partnership (LLP)
● Private Limited Company (PLC)
● Public Limited Company
The understanding of the business name under these categories is essential.
One Person Company
As the name states, a one-person company is best for people who are looking to start a business with sole ownership. This type of business will not give any permission for third-party interference.
Private limited company
The private limited companies are those that can promise high turnover. It can be led by a private organization or a specific person. Audit becomes essential in such a company.
Public limited company
The PLCs are also, moreover, the same as the private limited company but with a public organization or government control. They also have a high turnover.
Limited Liability Company
This type of company is a little different from the others mentioned above. Service-oriented companies must register with this category.
Now that all the categories are defined, one needs to go through more details and carefully select the one in which their company name will be registered.
Why is choosing the correct category important?
It becomes essential to select the correct category because, depending on the structure of the business, one needs to file all the taxes. Depending on what a person chooses, the payments to accountants, auditors and even the filling experts are given.
Filing for an LLC or LLP
The next step out there is to file for an LLC. This is a very crucial step in the overall process and, moreover, a hectic one. The California Secretary of State LLC Division is the unit responsible for giving the LLC.
They have to pass all the articles issued by the business owner. Once it is given, the registration becomes easy. They can also ask to set up a meeting in which all the contributions made by different members will be addressed. Various certificates regarding these members are also issued in such a case.
Registering different companies requires particular forms and articles to be filed and approved. Hence it’s always better to go through the correct details and visit the concerned authorities for the company name resignation.
Federal Employer ID Number
The Federal Employer ID Number is the unique identity of the company. In the next step, one has to acquire this number to get authenticated.
Open a business bank account.
A genuine business bank account named on the business is a must. Keeping personal and business finances separate is a wise step, and it will make filing taxes easier.
Setting the accounting section.
Business can’t run without accounting. Accounting can be a highly complex department, and hence it’s advisable to hire someone who can help in setting things up. Once the business owner is done with all these, knowing about other legalities is essential. Try getting information on how to calculate overtime in ca? and more. This will help in furthering the company.
At last, go for all the other needed licenses.
There are many other licenses required for a business to run efficiently. Some of them are all listed below-
- California Seller’s Permit
- Alarm Permit
- Building Permit
- Tax Permit
- Health Permit
EDD Registration becomes necessary
Never forget the EDD registration. It is one of the essential permits to have.
Registering a company from scratch is quite hard, but with the above-given step, anyone can easily register their company name.