If you are an entrepreneur with valid business ideas and a concrete business plan, before starting the business you need to know how to open or set up a new business. It is important to understand that your company must be properly registered and must comply with tax regulations for everything to be legal. You will also need to fill out a series of forms and advertise your start up locally or nationally, depending on the type of business you decide to start and the state you want to operate in.
Steps
Step 1. Decide which type of legal form is best for your company
You can open a sole proprietorship, a limited liability company, a partnership, etc. Consult an accountant if you are unsure of which legal form is the best.
- Open a sole proprietorship if you plan to manage the company independently, without employees.
- Consider other legal forms (limited liability company, simplified limited liability company, etc.) if there are one or more partners. These legal forms limit the liability of each shareholder in the event that the company is sued.
Step 2. Choose a name for your company and make sure you can use it
If there are other companies with the same name, they will be able to prevent you from using it within the same state, if not all over the world (obviously after ascertaining copyright infringement).
Step 3. Complete the company name with the appropriate suffix
To the name of the sole proprietorship you will have to add only your name (eg: ABC di Matteo Rossi), while the other legal forms require the use of acronyms such as SRL, SRLS, etc.
Step 4. Draw up an enterprise operating agreement, unless it is a sole proprietorship
An operational agreement describes important operational criteria such as division of labor and payment of members.
Step 5. Fill in all the paperwork related to setting up the company and paying taxes by contacting the appropriate local or national agencies
- In the case of a sole proprietorship, register the company name and advertise it in the local newspaper.
- Other legal forms require a tax identification number, an operating agreement, and a legal document outlining the company's charter.
- You will be asked to register the company in each state where you will do business. Talk to an accountant to discuss the legal issues involved in doing business overseas or online.
Advice
- Carefully study the different legal forms and related conditions before opening or setting up a new business. This will allow you to make a proper decision and avoid complications.
- To open a company in Australia, apply to the Australian Securities Commission (ASIC). Contact an ASIC agent online to obtain the Australian company number and have the necessary authorizations to start the business.
