How To Register A Business Name (2024 Guide)

‍

Registering your business is a crucial step to take before you start operating. Usually mandated by state entities like the secretary of state, business registration is essential. Additionally, you may need licenses, permits, or registrations from local or federal agencies. This article guides you through the process of registering your business, ensuring a smooth start for your venture.

Are You Required To Register Your Business?

‍

The necessity of registering your business depends on your industry and location. Generally, businesses like LLCs, partnerships, and corporations must register with the relevant state agency, usually the secretary of state. On the other hand, sole proprietorships usually do not require business registration.

‍

‍

‍

Registering Your Business With Local and County Agencies

Although registering your business with local or county agencies might not be necessary, depending on your business type, you may still require permits or licenses for operations. Additionally, if your business operates under a name different from its legal name, you may need to register a trade name or doing-business-as (DBA).

Registering Your Business With State Agencies

In many states, businesses like LLCs, corporations, and partnerships are typically required to register with relevant state agencies if they engage in business activities within the state. Business activities can encompass various operations, such as:

• A physical presence in the state
• In-person meetings with clients in the state
• Receiving a significant portion of company revenues within the state
• Having employees working in the state

‍

To register your business in a state:

‍

• Check the state's requirements
• Register with the secretary of state's office
• Appoint a registered agent located within the state to receive official papers and legal documents on behalf of your business.

‍

Registering Your Business With Federal Agencies

In most instances, registering your business with federal agencies is unnecessary, except for obtaining an employer identification number (EIN) for tax purposes. Some industries may necessitate federal registration, especially if you seek federal trademark protection. If you opt for S Corporation taxation (S-corp), filing a Form 2553 with the IRS is mandatory.

‍

Even without mandatory federal registration, businesses must adhere to federal laws and regulations, including Occupational Health and Safety Administration (OSHA) workplace safety requirements.

‍

‍

When You Do Business in More Than One State

‍

Foreign Qualification

If your business operates in multiple states, you must undergo foreign qualification in each state where you conduct business. Typically, this process involves filing a certificate of authority and providing a certificate of good standing from the state where your business was originally formed.

‍

How To Register a Business Name

The business name serves as the official identification for your business. To obtain an Employer Identification Number (EIN) through Form SS-4, you'll require a business name. Registering this name involves creating necessary formation documents—like an LLC operating agreement, partnership agreement, or shareholders' agreement—and submitting registration documents to the relevant state agency.

‍

‍

Ensuring the availability of the business name in the state of formation is crucial. You can verify its availability by using the business name lookup search tool provided by most states through their Secretary of State Business Division.

‍

‍

How To Change a Business Name

‍

To correct clerical errors and typos in your business name, you can typically file a certificate of correction. However, if you intend to make a substantial change to the legal business name, follow these steps:

‍

1. Adopt a resolution approving the name change, signed by the necessary shareholders, partners, or LLC members.
2. Amend business formation documents, such as the LLC operating agreement, shareholders' agreement, or partnership agreement, along with the articles of organization or incorporation.
3. File articles of amendment with the secretary of state or relevant state agency, including the required filing fee.
4. Notify state regulatory agencies, taxing authorities, and licensing agencies about the name change.
5. Update the name on business accounts and inform clients, vendors, and suppliers.

‍

Before registering the new business name, ensure its availability in your state. Conduct a Google search for similar names and check the United States Patent and Trademark Office (USPTO) database to confirm there are no trademark protections in place for the name.

‍

‍

Registering a Trade Name:

Opting for a trade name or Doing Business As (DBA) can be a quicker and more cost-effective alternative to changing your business's legal name. If you decide on a DBA or trade name, you might need to complete a separate registration for it. Verify the specific requirements and filing fees with your jurisdiction's secretary of state.

Bottom Line:

When establishing a new business or rebranding an existing one, registering the business name is a crucial step. Typically, this occurs as part of the business registration process with your state's secretary of state. The specifics may vary based on your business registration type, whether it's a DBA, LLC, or S-corporation.

‍

‍

Frequently Asked Questions (FAQs)

1) How much does it cost to register a business?

The fees for registering your business with the state can vary, but typically, the cost is a few hundred dollars. If your business operates in multiple states, additional filing fees will be necessary for obtaining foreign qualification in those states.

2) How is a legal business name different from a DBA?

The legal business name is the official designation used by the government, such as the IRS and the state of registration, for formal purposes. On the other hand, the DBA or trade name is the identity under which the business is known to customers, clients, vendors, suppliers, and the public.

3) How do I trademark my business’s name?

Trademarking your business name involves four key steps. First, assess if a trademark is necessary. Next, conduct a search to ensure there are no existing trademarks for the chosen name. Afterward, prepare an application for submission to the United States Patent and Trademark Office (USPTO). Finally, file the application with the USPTO.

‍

4) How long does it take to trademark a logo?

The processing and approval of a trademark application typically span from several months to over a year on average. If complications arise, such as reexamination or amendments to the initial application, the timeline for the process may be significantly extended.

‍

I hope this information was helpful! If you have any questions, feel free to reach out to us here. I’d be happy to chat with you.

‍

Vincere Tax can help you with the tax implications of business taxes, stocks, bonds, ETFs, cryptocurrency, rental property income, and other investments.

‍

Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!

‍

‍

‍

Friends don’t let friends do their own taxes. Share this article!

‍

This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.