A business document that affects court proceedings and other long-term business operations should be written with care. In legal procedures and business operations, a poorly prepared document may fail and frivolity may result. The main point in a well-prepared business document and legal document is effectiveness. Comprehensive legal documentation also reflects comprehensive research, thoughtful analysis, and translated studies as a policy or procedure for a non-lawyer. Many basic concepts and legal devices and traditions that are involved in the attitudes that make up the bulk of corporate base documentation. Understanding these concepts and wide practical experience facilitate the streamlining of drafting work. Combining professional practice with deep knowledge of corporate law provides excellent guidelines and standards.
Documents are basic, tangible writing of a piece of communication, but a number of legal documents are often needed for business transactions. It is necessary to ensure that the company is protected from various liabilities, aside from the fact that anyone entering into business transactions with the company or the corporation will wish to establish the right to do business with it. This is usually achieved by legalizing documents that are then recognized by the government for certain transactions and events. Where these documents are issued and where it is intended to use them, the process in which they are legalized will depend.
Importance of Streamlining Business Registration
Producing expired (and then must renew) documents, blank forms, non-specific information, not having a certified true copy when required, and not having the proper receipts to support your application – what this creates is a longer processing time for your application. And as the saying goes, time is money. So be wise with your time and by doing so, be productive. As for me, the most important thing to do is to always have a ready stock of documentary requirements in your toolbox or your office or your car. Anything that falls under the category of essential documents is always kept up-to-date and valid. If you’re not sure what these requirements are, well look no further, my guide on essential documents is what you need – with the Basic Information Sheet, civil registry documents, correction/annotation typewritten submission sheet, and pen.
While we may not have control over how quickly the government can process our paperwork and approve our business applications, we can always be mindful of how being prepared with our documentary requirements can quicken the registration time. Doing our business registration paperwork can be a chore – from going to the office, to preparing the required document evidence, to having to fall in line; it’s a very time-consuming but necessary task. But what really takes up a lot of time is not being prepared.
Benefits of Streamlining Business Registration
The business registration not only requires a large amount of cash but also summary information of the business for administrative instructions. This includes the business name, type, share of partners, initial capital, place, type and duration of business, and other particulars of the enterprises. In the context of limited available information of the business by the operators in the informal sector, including women entrepreneurs, it may be frequently necessary to visit multiple government offices that maintain fragmented business registration records. The unclear description of business registration procedures and requirements, distributed services among different departments, potential discretion in the public sector, time and cost, and lack of awareness of the capability to engage in the process hinder efforts to conduct an enterprise or potential business owner’s registration. Since the information on the business is open to abuse by competitors and criminals, there are also security concerns in encouraging registration.
The micro, small and medium-sized enterprises and the informal operators, mostly in developing countries, account for more than 70 percent of employment and are important for providing livelihoods. However, they face several constraints to formalization, with burdensome business registration being at the top. According to the Doing Business report by the World Bank, it costs at least 190 percent of the national per capita income on average to set up a business in Sub-Saharan Africa and South Asia, in comparison with only 15 percent in OECD high-income members. Additionally, it takes them 17 days and follows nine procedures compared to OECD’s 9 and 966 respectively.
Overview of Essential Documents
Once the nature of a company becomes clear, start detailed research. Consider discussing the company model (with an accountant and a lawyer). Choosing a skilled accountant will remove a lot of pressure from a client. The financials, risk tolerance, and tax status of the company are significant for business people to depend on. The price is the big advantage in terms of being an accountant. Accountants may be charged an annual maintenance fee of $500 or more, but this amount of money will be saved when they file a full return. The total tax return amount can be as much as 5 or 10 times the cost.
Essential customer research documents and legal documents are included in this manual. But first, this chapter provides an overview of those two categories of business registration documents. Conducting research and finding general requisites; general customer research – basic industry analysis – doing a direct search on the website of a secretary of state, province, territory, or country or performing a web search for registration steps in an area of interest can reveal key registration, licensing, and permits necessary at the foundational stage of a company. On the site of the federal (that is, Canadian, or American) government (Service Canada or USA.gov) or websites of other countries, key business requisites can be found (transactional, trade, business registration).
Preparing for Business Registration
Preparing a blueprint helps determine the right type of business. According to experts in business administration, making a business plan helps determine the right type of business for the owner. Nevertheless, the main point is not how detailed the business plan is and how it is structured. If the owner feels content and sure about his business plan, then planning is sufficient. Moreover, it must consider market necessity including location and population. An important point when starting to conduct business research based on the social situation is to observe business in the market. There is business for every social group of people. Some business activities may take time to develop, but as long as the business plan is consistent and the owner is focused, it should be successful.
In the process of preparing for registration, first decide on your desired type of business. Discuss your business aspirations with your family. Some individuals start a business without first obtaining agreement from their family but may later find that in order to run their business more effectively, they need family cooperation and support. Obtain agreement from your loved ones about your business, as this will lead to support from them when you are most in need. Then start working. Do you know what kind of business you want? Do you have previous experience regarding the kind of business or products, or do you have the capability to provide services that are fully supported by your interest and passion? If yes, then go ahead and register. If not, then you must reconsider.
Researching Business Registration Requirements
Regardless of how easy or hard the process is, one thing that does exist in every city and municipality is the need to be informed of what is necessary to be covered before you jump in. Research is key, so why not start there. Talk to people in the know, small business owners, accountants, lawyers, and what have you to get your information on. Your local business bureau should also be a good source. They will give you pointers on how to go about the process and might even let you know if there are government programs the city gives out to small-time entrepreneurs. They will also let you know about some upcoming taxes like income taxes. Another recommendation is to check the city’s governmental website for information regarding business registration as that might save you from having to go there physically (physically stamping and dating many sets of documents is one of the favorite pastimes of any city or municipal office). If that doesn’t exist either, do what a good socially anxious person who wants to avoid contact with real-life human beings does: Google. Sometimes the answer will come to you without having to ask anything.
There are various types of cities and municipalities, big ones with automated computer systems to handle business registration end-to-end and small ones that might balk at the idea of having a business in their midst. The registration process, depending on your area, could be rather easy and will even offer a lot of guidance, or it could be so complicated (background checks & clearances at the city, residence, and labor departments) and byzantine that it might discourage you from ever pursuing your dream of making your own game. There is no absolute measure of how difficult or easy it will be, the best I suppose you can do is research, find out everything you need as early as possible, and fill, fill, fill out any required forms. Hopefully, your interactions with any local government office will be clear and professional, and you won’t have to show them your best dead pigeon impression to more clearly articulate your frustration with them.
Gathering Necessary Information and Documentation
Registered Agent Information – The registered agent is a recognized company or individual situated in the same state that you have consented to act on behalf of your business when it needs to report paperwork. Note that the required use of a registered agent varies depending on the business structure and the specific rules of the state. This is likely to be quite different from your required address and could constitute a secondary contact to obtain legal processes such as a court notification. Find a list of registered agent services in your state that meet your state’s requirements and service needs, or opt for a national registered agent service that is compliant with each state’s regulations.
Owner Information – Regardless of your business structure, you should be prepared to provide additional information on all company owners.
Contact Information – In addition to the business address, the state may want to gather your contact information.
Business Address – The business address for your business may or may not be required on one of the documents.
The following list provides just some of the basic information you will need to provide when registering a business or applying for additional documents, licenses, or permits. These requests are generally more specific in nature than those of the city or county. However, the request itself will help you gather all necessary information you will need to provide. Additionally, some of these documents have different requirements or may not be required at all in some locations. The specifics can be gathered in the requests for each service through the state agency or your third-party filer.
Once you have identified the filing and regulatory requirements for your specific business structure, you will next need to answer the various questions and gather the information and documentation necessary for filing the state paperwork associated with your formation. This may be dependent on the specific services or structure provided by your third-party filer, who has generated a list of documents required, obtained required signatures, and collected filing fees.
Understanding Legal Structures and Business Types
A sole proprietorship is a business model in which a single owner is responsible for all facets of a company. With this type of business, the owner has total control of the business but also bears complete liability. A sole proprietorship has no legal separability from its owner. If you are currently living in a province far from the local government office in Metro Manila but would like to expedite the process, you can authorize an administrative personnel to be your representative by providing a Special Power of Attorney.
A corporation is a legal entity that is separate and distinct from its stockholders; therefore, it has its rights and liabilities subject to the law. This type of business requires a minimum of 5 incorporators and a maximum of 15. A partnership is an agreement between two or more people to go into business and share its profits. With a partnership, the investors are called partners, and each partner contributes money, property, labor, or skill to operate their business entity. A partnership has a maximum of 100 partners and a minimum of 2.
Since 30 July 2018, registering your business entity is one of the services offered under the Anti-Red Tape Authority’s National Effort in Business Registration (Salient), thereby drastically reducing the steps needed to register a business from 8 steps to just 4 steps. Salient uses a single unified form for business registration, doing away with the need to visit different government entities to complete the registration process.
In the Philippines, there are seven types of legal business structures: corporation, partnership, sole proprietorship, cooperatives, non-stock, non-profit corporation, foundations, and branch office of a foreign corporation. Understanding the legal structures of the business is essential when choosing and registering the appropriate business entity. Once you have decided on the type of legal structure for your business, you may now proceed to obtain a barangay clearance.
Essential Documents for Business Registration
Employer Identification Number / Independent Taxpayer Number (EIN/ITIN) – The EIN is the business equivalent of a Social Security number. Every business must have an EIN in order to pay employees and to file business tax returns. Employers participate in the income tax withholding system by filing an Employer Identification Number application, Form SS-4, annually as long as they have income and withheld employment taxes. Even if you are the only owner and only employee in your business, you should have an EIN; it will help you to identify your business and separately keep track of business income and expenses. The IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who cannot obtain a Social Security number. So they will have the identification number that makes it easier for tax filers to report the taxes they owe and participate in the filing process.
Articles of Incorporation and Corporate Bylaws – Articles of incorporation are the primary legal document that officially establishes a corporation in the state in which it is formed. It provides the basic information required to form the business and register the business when filed with the Secretary of State or the appropriate state authority. To be incorporated, you will need to file articles of incorporation with the Secretary of State in the state you want to operate. The articles of incorporation are sometimes also named as the corporate charter, certificate of incorporation, or articles of association. Once filed with the state, this document formally creates your corporation as a legal entity within the state and grants the corporation its legal right to operate as a business. Corporate bylaws are an official set of rules that will govern the internal management of the company. All corporations should have bylaws regardless if they are operating in the state the LLC originated from, and many states will require that corporations adopt the bylaws immediately or within a specified time after incorporation. These bylaws will take the place of operating agreements in other legal business structures. Bylaws are typically adopted at the organizational meeting—following the creation of the corporation.
Business Name Registration
The first and most important document is a valid means of identification for the business owner, that is either a driver’s license, an international passport, the permanent voter’s card, or an identity card which is either from a government organization or a legal professional organization. Every one of the documents must be current and valid. Applicants are also expected to present two passport photographs, proving that the business owner is personally attesting to the registration, application, and authority they are representing the business. Before the process begins, the business owner is expected to proceed to the tax office to obtain the tax identification number. According to Step 3, after payment of the sum of Cz200 to the Federal Inland Revenue Service, the applicant can obtain the unique ID number in less than one to two days after an application has been submitted.
Thirdly, a business owner should be adequately prepared for the all-important process of meeting requirements for business name registration. The first step is to carry out a search for the availability of the desired business name. The business registration process ends in the issuance of the certified true copy of form CAC 1.1, business name registration details, as a confirmation that the business name has been registered. In preparing for the successful registration of your business and in minimizing costs, there are a number of basic documents that the entrepreneur should keep in place to make the process hassle-free. If you are fully prepared for the registration and have all of the documents listed in this checklist at hand, your business name can be ready for registration in one to two days, thus avoiding any possible bottlenecks along the way, advises consultant Zainab Muhammed.
Articles of Incorporation or Organization
Once prepared, the next step is typically to file with the state. These filings are under the jurisdiction of the Secretary of State in most states, but in some states, it might be the Department of Commerce, Division of Corporations, or another government agency. The filing might also include a foreign qualification application or other required forms. Once filed, you might receive a filing state via email or mail, which would indicate the effective date of the document. This doesn’t necessarily mean the business has been formed. The purpose of the date of formation being important is in the event that additional steps might be necessary to be completed prior to formally operating as a company, such as creating bylaws, operating agreements, holding a first initial meeting, lucrative activities, filing Post Incorporation Authority, obtaining FEIN, credit cards and so forth.
One of the first legal steps in forming a corporation or limited liability company (LLC) is to prepare and file a document that is sometimes called the articles of incorporation or organization. Every state has different requirements for the formation documents, and there is no standard form. Your document will also depend on other considerations such as the type of business you’re forming, the state you’re filing in, partners’ or investors’ requirements, and more. Articles of incorporation or organization typically include the business name and address; the objectives of the business; a statement indicating whether the business can be for profit, not-for-profit, or benefit; stock or membership interests; a description of the directors or members; the registered agent; and the initial registered office address. Some states will also require the inclusion of certain tax information. States may have different names for this document including certificate of formation, charter, registration of organization or other name.
Tax Identification Number Application
Prepare your original identification document/s, as well as their photocopies, which will be authenticated. The officer on duty will instruct you where to proceed. Attaching a head tax payment to your authenticating requirements is essential. The only taxpayer-attributable payment is the payment of the community tax, also known as head tax. The BIR accepts this tax payment. A minor or student belonging to any of the above categories may procure an individual TIN for exclusive employment purposes. Such individuals can use their TIN on other necessary transactions only after reaching the legal age or completing their employment requirements, in case of a minor.
An application for TIN processing is typically accepted Mondays through Thursdays from 8:00 am to 4:00 pm, and from 8:00 am to 3:00 pm on Fridays. Submit three items in entirety beforehand: 1) properly filled-in TIN application form, 2) Photocopy/ies of birth certificate/s or, if legally married, marriage contract or separation decree, 3) Authentication of photocopy/ies of above-mentioned identification document/s.
Business Licenses and Permits
When you apply for an Enterprise registration in Alabama, both the local licensing officials and the Alabama Department of Revenue will review your articles of incorporation. Even if your business is not a corporation, your business name, your initial business address, and your potential market will still play an important role in the process, so be sure to complete and submit this information as early as possible. One note is to double-check the image on the state timesheet, as these details may change due to locality.
The most common requirement before operating, businesses need a tax registration and an operating permit. A stipulated number of employees, typically ranging from 1-4, may be required. Moreover, you may need to present proof of your Social Security Number and make a partial payment for your Social Security taxes. If your business is located in specific states such as Alabama, Florida, or New York, you need to plan for quarterly tax filings. You may also need to file a State Tax Commission form separately, as well as provide proof of payment.
Put simply, business licenses and permits are issued by tax collection agencies to authenticate the business application. Certain licenses, which vary depending on the type of business, seal specific aspects of your business. Community licensing, in particular, inspects your location and may imply improvements accordingly. If you have a retail business, additional location-specific licenses may be required, including zoning approval and the payment of local taxes, both typically linked to operating a business.
Business licenses and permits are essentially coverage costs or taxes. As we already mentioned, the government agencies need the cash to fund their bureaucratic activities. Also, licenses and permits demonstrate that your business is recognized under the law; this is important for clients and investors. Indeed, compliance with regulatory agencies is almost always a dreaded requirement. But when clients or investors hear that your operation would be illegal in any other context, the task of managing the necessary requirements sounds less incredulous.
Below, we will highlight the importance of business licenses and permits, focusing on common examples, and the mandatory requirements for different industries.
The failure to obtain necessary licenses and permits can result in fines, penalties, and even the forced closure of your business. Additionally, it can create the impression that, as a business owner, you operate your business outside the principle of integrity. Increasingly, it could impact your funding options due to the possibility of bad publicity and concerns over your lack of commitment to ensuring compliance. On the other hand, remaining compliant and even promoting your compliance with the specific requirements can help you demonstrate your professionalism, integrity, and enhance your branding.
Employment Identification Number (EIN) Application
As long as you complete the form accurately, your business will receive an EIN instantly. To be eligible for an online EIN, your principal business must have a U.S. mailing address and an EIN will be assigned to your business for 365 days. You can only apply for an online EIN one time per day and only one fax number per 24-hour period. The best thing about online EIN is that it exchanges the necessity to wait for confirmation for a computer-generated EIN that saves you time and money. You can then use that EIN to begin to complete other paperwork that requires it. Each specific tax ID form requires an EIN.
The EIN is a unique nine-digit number that identifies your business. You can get the tax ID or EIN for your business by calling the IRS at (800) 829-4933. Customer service representatives are available from 7:00 a.m. to 10:00 p.m. local time, Monday through Friday. Representatives can also approve your EIN application over the telephone at the same time. Another way you can get an EIN for your business is to apply for it online. The IRS has an online EIN assistant. You can access it at any time of day, six days a week at no charge.
Streamlining the Registration Process
Keeping the intent of the program: part of the reason why so many business registration reform programs (both in terms of number and variety of actors) do not meet expectations is because many of these registration reforms are internally initiated and are solely based upon the recommendations and opinions of the benevolent institutions and not upon the unique necessities of the future or active entrepreneurs themselves. As we saw in the previous chapters revealing the after-effects of procedure simplification and minimum capital abolishment, there are many things that can go wrong when institutions act hastily alone when initiating reforms, without any consultation about the apparent needs of the beneficiaries. Indiscriminately, the cancerous institutional opacity is usually accompanied by bureaucracy that can block all regeneration and regeneration procedures in the following way, resulting in a collective aggregate-generated uniformity effect: the fewer voluminous the request for permission becomes, then the fewer the obstacles that spring from that request multiplied by the numerous quantitative requests.
Streamlining the registration process: increasing the efficiency of the business registration process can be divided into two main categories. On one side (private side), the business environment institutions’ main focus is on increasing procedures’ efficiency and reducing registration times. This is the case, for example, in Greece where the process and time to register and start a new business in the regional One-Stop Shop for Enterprises (known as EDAK) were modified as from the end of 2008. The modifications referred to the technical improvement of data and document processing issues, the circulation of documents between all competent authorities involved in the business registration processes through digital roads, as well as other technically novel features and faculties directed towards beneficiaries of the One-Stop Shop. On the other side (public side), the emphasis is on the government’s initiatives aimed at increasing the profitability and effectiveness of these institutions. As it is already well documented, utilizing Information Technology (IT) can become a determinant factor of success, both on the private as well as on the public side, realizing this common intangible goal: streamlining the business registration process.
Utilizing Online Registration Services
We began to work with registered agents some time ago now to provide an even easier resource to start-ups. How this process typically works is once you have filled in a simple questionnaire I provide for our clients, I turn it over to our agent who then completes the necessary forms and registers the business under our name. Once the process is completed, ownership will then transfer to the client. Some agents will then add specific services to their basic registration offerings such as personalized record books, EIN registration branding, and supplemental documentation. Some agents will also handle the publication requirement, which is an essential part of registering in some specific states like New York. I can provide a list of the states that require publication along with the associated fees if this is something you need to consider. Regardless of the state, you will not have to worry about payment for the publication, additional fees, or additional required documentation or related business compliance requirements. This is what registered agents are paid to ensure.
As someone who has had to physically register for a business at a number of government agencies, I cannot emphasize enough how much I recommend using these online registration services. These companies will handle the majority of the process. You fill in their simple form and answer their questions, they do the rest. You do not even need to understand the process. They work with all the government agencies and they will get your registration done. When comparing these companies, you should inquire whether they will also advise you on the local requirements and fees that may vary not only from state to state but also from city to city. The platforms will charge you a small premium, but most people find that it more than covers their time, effort to travel, costs, and the fact that they do not need to take off of work.
Hiring a Business Registration Specialist
Hiring a professional for assistance may streamline your process, and it is important, but it is often an expensive investment. To begin, consider what is most comfortable for you. Business registration packages consider the benefits and potential drawbacks of hiring a specialist. Before making a decision, thoroughly research the qualifications and reputation of different business registration specialists. Consider scheduling consultations with a few specialists to discuss their services and fees to ensure you are making an informed decision. If you are able to search needed data easily, acquire the data and information necessary, and have access to view over any forms, you might find it easier to walk yourself through many online applications. Be aware that with any decision, it is important to consider a few essential factors used to weigh your decision, and to consult others in your process. Make sure to inform a CPA or attorney of any plans, and check with them for counseling so as to meet best practices. Be sure to conduct thorough market research against your specific requirements to weigh the cost of an up-front registration service fee against all other options. If you decide to choose a business registration service, conduct research as you would in contracting a professional. Determine if the registration service has outstanding litigation, verify client references if provided to verify any allegations, and beyond any potential conflicts, it is, finally, up to personal preference. Close analysis is particularly interesting, as it pertains to the overall registration process and duration, as well as in selecting any form of assistance. An individual’s preference is the most significant deciding factor when choosing to receive business registration services, so as to best suit your business’s needs.
Consult with your attorney and your accountant before you hire a registration service to ensure it is reputable. While some business registration vendors are CPAs and attorneys, others may not be your best choice – though often more lucrative, those alternatives may not have the credentials necessary to provide appropriate filings. Note that all business licensing service vendors are for-profit businesses – once your service fees are paid, the terms of your relationship will be established, but the cost for the services may still approach or exceed $100. While service assistance can be expensive, in exchange, many business owners will also receive professional advice and assistance.
If you are unable to handle the registration process on your own, consider hiring a business licensing service bureau to assist you. Registration services typically offer more than just advice – they can help get your business registration filed and processed, offer you professional advice and assistance as they are filing and processing, and help answer any questions you have during the registration process. Services can range from document preparation, name and domain searches, and even logo and website designing. Registration services must be sure to offer a broad spectrum of knowledge.
Organizing and Preparing Documents
Organizing and preparing documents can be challenging to many new entrepreneurs, especially to those who do not have experienced staff to assist them. Here are some important tips from this guide to make sure your preparation is smooth and efficient, saving you time and money along the way. First, pick and choose an appropriate, if not good organizer for your document. Second, gather the basic information. You will be needing them on all documents to be prepared. Organize the information. It can be on your mobile phone. It can also be in your laptop’s storage. It does not matter as long as you have them prepared in a fashion that you can easily present them when required. Third, visit websites. Government websites are always updated with filing information. Other third-party websites are simply there to sell you things while government websites can always provide you critical, updated, and timely information. Fourth, seek the services of a professional, if you feel that your current information is not enough, or you are overwhelmed with the documents you need to prepare. They are not there just to prepare your documents for filing but because they know, most importantly, what to prepare or not. For a fee, they can also assist you with the process of entity registration. Below are a few lists of essential documents for entity registration. Practice gathering and preparing all the documents, so in case you are called upon for an inquiry, you will not be embarrassed.
A comprehensive, straightforward guide for new entrepreneurs for smooth business registration. This work does not only provide information about the necessary and essential documents that need to be prepared and filed during the registration process with the different government agencies, but it also emphasizes their significance in business planning and development. Indeed, it is rare to come across a self-help publication such as this not only that sets realistic business expectations, but also provides clear, step-by-step instructions, directions, or guide to first-time business venture owners and entrepreneurs.