Registering a business

In many cases to register small businesses, it is as simple as registering your business name with the local or provincial government. And in other cases it is not even necessary to register. If you decide to use your own name, for your business, you will be obliged to register, no matter where you are.

The registration of the company is nothing more than a document in which the activities and organization of the company in a given time are recorded. Failure to register your business can mean that you lose the protection of the local government, as well as some legal and tax benefits.

Business registration requirements

To become a legal entity, it is not necessary for many businesses to register beyond the local government. Just by applying to the government for a tax identification number, which is required to open a business bank account, you are registered.

Sometimes small businesses register with the local government in order to protect their trademarks and for tax exemptions. You must register with the federal government if your business is set up as a limited liability company, a corporation or a non-profit corporation. You will need to do this in any province or state in which you want to market your company's products and services.

Provinces and states require registration of your business with their local governments when it is physically located in them, when you frequently meet with customers in those states or provinces, or when a large portion of your profits come from one of them.

Online registration is permitted and used in many states or provinces, while others require these documents in person or by mail. When you have formed your business as an LLC, corporation, partnership, or non-profit entity, you must first choose who will be the registration agent. Usually this role is filled by the business owner.

He or she will handle all the official paperwork for the registration process. This agent must reside in the state or province where the registration takes place, i.e. the business activities of the company cannot be conducted in one place while the registration agent lives in another.

This process is not the same when your business is online and has an international scope. It is only for when the core part of your venture takes place in a single location or territory.

A large group of states or provinces will also ask you for a certificate of good standing, in case you need to register your business in more than one. You should be aware of this and check the statutes of each location where you want to register your business.

Before starting the registration process you must be clear about the name of the company, its location, its administrative structure, since all this information is required. It is also necessary to know the number of shares and their value.

Documentation required for business registration

Depending on how you have your business set up, the documentation you need to submit will vary depending on the structure chosen.

LLC: For Limited Liability Companies, the main thing you need to file is the organizational documents, which explain the basic characteristics of your company.

These should also include business information, the name of the business, information about your partners and the registration agent. In addition to the operating agreements, which delimit the organization of the business in terms of financial and administrative aspects.

Limited Partnership: For all limited partnerships it is mandatory to file a certificate of incorporation. This is a simple document which briefly explains the elements of this company. It also informs the state or province of this new partnership, as well as essential information such as name, location, partners' information.

In some places this document may also be called a limited partnership agreement, which is an agreement between the partners that outlines the parameters for decision making within the company. It also clearly defines the role and responsibilities of each of the members of the partnership, so it is highly advisable to create this document for the protection of its owner and all the members of the company.

LLP: Also for limited liability companies, this certificate is highly recommended. Although in many cases local governments do not require it from LLP's, it is very useful for the management of your company.

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