The Complete Guide to Register an e-Commerce Business in the United States It's important to learn the business registration process before you start a business in the United States to begin your entrepreneurial journey without any problem. There are many companies offer business services online to enable you register your e-commerce company without leaving your sweet home.
By registering your e-commerce business, you can ensure the protection of your personal and business assets. Here’s a complete guide to starting your journey as an e-commerce business owner-
Starting an ecommerce business Select the name- The first step is to select the name of your online store. It’s important to choose the name that catches the eyes of customers and make a long-lasting impression. Always make sure that your online store’s name should be related to the products and services you provide as this will help you in building effective marketing strategies in the future. Perform online research, and check out your competitors that are already doing well in the market. Create an excel sheet of the name (and its synonyms) you like, and eventually select the one that you think will stand out from your competitors. It’s good if you check local business directories at the time of selecting a business name to ensure that the name isn’t already available. Register the name- After you finalized the name (one of the most important tasks), make sure that it’s not already available. Fill your intellectual property application at the United States Patent and Trademark Office (USPTO). With online business formation services, registering your business
name is very easy— just provide all your details with an agent who will handle everything related to on your behalf.
Select the business type- The next task in incorporating a business is to select the type of your business. There’re two main options—LLC and Corporation. LLC- Registering your e-commerce business as a limited liability company is a cost-effective option and requires less paperwork. A significant benefit of an LLC is that you’re not liable for corporate debts personally and your assets are completely safe. Additionally, you can also rent your personal assets to your business and choose the way it’s to be taxed. Corporation- Usually, there’re two options when it comes to registering your business as a Corporation—”S” and “C.” S corporations are "pass-through entities" that aren’t taxed at the corporate level. The owner pays income tax on the revenue that his business makes. The C corporation is considered as a separate entity, and you have to pay taxes on business profits and personal income. Whichever option you choose, it’s important to note that it can be changed, and you can move from one structure to another. With business services online, you can get professional help to choose the right entity for your needs. Choose the state where you want to operate- Spend extra time to decide the state to operate your e-commerce business in. It’s necessary to note that tax rates may vary from state to state. Most entrepreneurs prefer incorporating their businesses in the states with low sales taxes. But, you should do a comprehensive research about the rules and regulations to do a business in the state you’re thinking to incorporate.
Get federal tax number for your business- The next step is to obtain a federal tax number for your business. It’s also called an employer identification number (EIN), which is required for paying state and federal taxes. With business services online, you can apply for your EIN from home. Open your business bank account- Having a corporate bank account will help you prove that your e-commerce business as a legal entity. It will also help you separate your personal finances from business profits. The bottom line is—there’re many processes and legal paperwork that you need to complete to start your legitimate e-commerce business. However, consulting a reputed online business formation services provider is the best way to finish the business registration process hassle-free.