Establishing a commercial enterprise can be a difficult endeavour, especially if you are a first-timer in the field of business. The process itself will require some considerations and decisions to make. Thus, it is only important that you plan ahead of time so everything will be spontaneous.
Some of the things you need to take into account are the following: determining the goods and services you will be providing; knowing your target market, as well as your competitors; acquiring capital; getting a location; purchasing equipment and devices; and advertising your products. Indeed, company formation would be difficult when you do not do some research or gather some ideas from more experienced individuals.
Aside from the tasks mentioned above, you should also attend to the legal requisites that are essential to fully establish your trade. But before you take a step further, you need to assess what type of structure you want the venture to have since this will determine the pace and extent of the registration and licensing process. There are 5 business structure categories: sole proprietorship, general and limited partnership, corporation, and limited liability company. Below are some ways on how to go about each type.
If you desire to become the only owner of the commercial enterprise, then you would only have to deal with a few formalities. The process is not that costly too. Depending on the state’s laws where you are going to situate your office, it is a must to secure a business license, an occupancy permit, and a company or franchise registration number. The last requirement shall be used by authorities to track tax collection and other lawful matters.
GENERAL AND LIMITED PARTNERSHIP
Since these 2 cases are more or less alike in nature, the main objective is for the 2 parties to set up a clear contract regarding capital and profit contributions, gain and loss methods, and dispute resolutions. To register a company, both of you have to pass a thorough partnership agreement that stresses the factors mentioned above, as well as the benefits each person is entitled to. You also need to comply with the requirements in the previous type.
Someday, your venture might grow and become a reputable firm. The major thing you have to attend to is the application of a charter which consists of the undertaking’s purposes and objectives, the incorporators’ names, and the amount of capital stock.
LIMITED LIABILITY COMPANY
This is the best means if you do not want to worry too much on legal obligations. There are no precise requisites for this type since they vary from one state to another.
May the information above aid you in founding your commercial enterprise.