where can i get a business name?

Question

can someone tell me what office i need to goto?
also would i have to pay more taxes if i had a business name?

tks in advance! ;)

Answer 1

To become a business you need to do 2 things:

1 - Incorporate in a state
2 - Apply for a Tax-ID number from the IRS

There are several types of business you can incorporate as: LLC, C, S etc.

There are differences between each of these, mostly related to taxes and retained earnings.

In a C corp. you are allowed to retain as much earnings as you would like. (The company can hold onto its profit to reinvest), The earnings in a c-corp are taxed. You can issue many classifications of stock in a c-corp.

An LLC (limited liability company) does not permit you to retain earnings (you can, but not very much). All profits must be paid to the stock holders. The LLC does not have to pay taxes on its income, which is why the partners must divide up all the money. This is how the gov't earns it's taxes.

Be aware, in some states an LLC owned by 1 person is considered a sole-proprietership and not an LLC - some of the rules change. If you want to have an LLC, be sure to give 1% of the stock to someone.

Each state has a different fee structure depending on the legal entity you choose. You can incorporate in a state with "friendlier" business laws, which is why so many choose Delaware. Be aware that if you incoporate in a different state than where the business will be located, you must obtain permission to operate(i.e. pay a fee) in that state.

You can find out the fees and specific rules at the "secretary of state" web page in your state government's portal. You will find the forms to download to fill out for incoporation. There are third-party companies that will handle all your paperwork for additional fees.

Answer 2

Not knowing if you are in the US or outside, it would be difficult to be specific. Most US states and cities have their own rules regarding obtaining a business name. Contact the licensing division in your local area. If you are going to remain a sole proprietor, which is taxable at the personal tax rate, you would keep your own name and add a "dba" - doing business as whatever you wish to use as a trade name. Your state Corporation Commission researches requests for business names and alternates if you choose to incorporate. Becoming an LLC (which many are doing today) allows you to choose from several different types of taxing entity - sole proprietor, S corporation, C corporation or partnership. This can be done through the internet if you are US based for between $300 and $600. You should consult your personal accountant to determine which way you wish to proceed.