There are several benefits of starting a corporation and it provides road map for legal aspects by following the important steps. The regulations and legal documentation processes are important part of the steps of setting up corporation.
It is important to pick a name and perform a search to understand and evaluate which business names have been registered. An attorney can be hired for this purpose. It is important to make use of trademark search to understand if the name is available to be used.
Registration of fictitious business name is the next step. It is necessary to pay attention to the kind of proprietorship and file the DBA accordingly. It is important to have a DBA and file it for conducting business with the help of a name which is different than the official corporation or Llc name used for filing.
Incorporation of business or forming LLC is another important step. This is important for protecting the personal assets and liabilities of the company. It has its own advantages and disadvantages based on the business structure. LLC is useful for small businesses and the ones who want to have legal protection. S Corporation is useful for small businesses which helps for qualifying. C Corporation is useful for companies who are looking for VC or public funding.
The next step is for getting a federal tax ID number. This will help for distinguishing separate legal entity and it will allow IRS to track the transactions of the company. There is no obligation to receive a tax ID number if someone is sole proprietor.
Another important step is the understand about the employee laws. It will be useful for spending time with employment law professionals and to understand the essential obligations.
Another step is to obtain the business permits and licenses that are necessary for the business types.
Another step can be filing for trademark protection