When you register a company, it becomes a legal entity that has its own rights and obligations separate from its members. It can be publicly or privately owned, limited or unlimited in size, have a common capital consisting of transferable shares and have specific objectives that are declared by the law.
Companies are important contributors to the economy as they provide employment to a large number of individuals and encourage the purchase of products and services, which generates income and profits for them. However, in order to operate as a business legally and avoid the risk of liabilities, it is essential for companies to be registered with the relevant authorities.
Depending on the type of business and its location, there are different regulations that need to be followed in order for a company to become fully operational. One of the most important steps is obtaining a federal Employer Identification Number (EIN) from the IRS. This is the equivalent of a Social Security number and is used to identify the company for tax purposes.
Additionally, it is necessary for a company to obtain business permits and licenses from the towns and cities in which they have stores or manufacturing facilities in order to operate legally. Some companies also need to register as a nonprofit or get a tax-exempt status with the IRS, which requires additional documentation in addition to an EIN.
If you are in the process of registering a new business, you may need help getting all the paperwork filed. You can hire a lawyer to assist you with the process through a marketplace like UpCounsel. UpCounsel screens lawyers from top law schools to ensure they have the right experience to help you with your unique legal needs.