The Basic Differences Between Sole Proprietorship and Business Registration

Business registration is mandatory by law for all businesses that wish to trade in our country. This form of registration lets the public know who owns a business. By enrolling a business, you're guaranteeing that no one else will run a business in the same name as yours. Once this is done, all you have to do is to obtain a tax identification number or TIN and you're legally registered as a business owner.

There are several ways you can go about starting your business registration. The most popular way is to pick a business name and open up an account at a local savings or loan institution. You can find one by looking in your local phone book under "local banking". The advantage to doing this is that you will also have a TIN. The disadvantage is that opening a local business bank account can be quite expensive. The good news is that there are some alternatives to this method of small business registration. For top business registration guides, see HKWJ Tax Law & Partners Limited or view here for more details.

Another option available is to register a corporation. By using this form of small business registration, the profits from any money or assets belonging to the business entity will be exempt from personal income taxes. To do this, you must file an application with your state in which you wish to register the corporation. The application can be picked up from any county clerk office or obtained from the Internet. An application must be filed with all appropriate government agencies and then submitted to the appropriate TIN. The IRS will issue an EIN once the paperwork has been submitted and the application has been approved.

Sole proprietorship is another common method of business registration. Like corporation registration, the sole proprietorship form must be filed with your state in which you wish to register. Again, the application can be picked up from your state's county clerk or obtained via the Internet. The main difference between a sole proprietorship and corporation is that only the owner of the business is legally considered to be its legal owner. As a result, your personal finances will not be protected in the same way as a corporation.

Business name registration can also be done online. There are many business name registration web sites available online. All it takes is for you to fill out your personal details and your business name and then proceed to register your business name. The company will send you an electronic confirmation that usually requires activation of your business name registration. Business name registration is usually very quick. Most business registration web sites have 24 hour online assistance to help you out if ever there is an issue.

One more type of business registration that is frequently used is limited liability company (LLC). If you wish to register a business name with the IRS, you may need to utilize a specialized practitioner who is familiar with limited liability companies. A sole proprietorship is not subject to the IRS, so you won't need to worry about that. However, if you have employees or stock ownership, you will need to pay attention to the IRS rules regarding sole proprietorships and LLCs. Your business name registration needs to comply with all IRS requirements, but a professional will definitely make sure that your registration complies with all IRS rules and regulations. Continue reading more on this here:

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