When starting your own firm, you could have a lot of questions as an entrepreneur. Whether or not your sole proprietorship needs to be registered is one of the most often asked issues. No, you are not required to register a sole proprietorship. In this piece, we’ll delve more into the subject and address some pertinent queries.
The most straightforward type of corporate structure is a sole proprietorship. One individual owns and runs the company. A sole proprietorship is exempt from official state registration, unlike other business formations. Simply creating a business will allow you to operate as a sole proprietor. However, depending on the type of your firm, you might need to acquire some licenses or licences.
You can trademark your company name if you wish to keep it safe. A trademark is a design, term, or phrase that serves to identify your products and services from those of your rivals. You must submit an application to the United States Patent and Trademark Office (USPTO) in order to trademark a company name. The application procedure might be complicated, so consulting a trademark lawyer is advised.
Instead of forming a sole proprietorship, you may choose to create a limited liability corporation (LLC). In this case, you must register your firm with the state. The price to register an LLC in Tennessee is $300. The Tennessee Secretary of State will receive payment for this fee. Additionally, you will be required to submit an annual report and pay a $50 fee.
If you want to hire staff or create a company bank account as a sole proprietor or LLC, you must have an Employer Identification Number (EIN). A free EIN can be obtained, which is wonderful news. On the IRS website, you can submit an online EIN application. Fill complete Form SS-4 and mail it to the IRS if you’d rather submit your application that way.
Sole proprietorships are exempt from registration requirements, but depending on their particular industry, they might need to apply for licenses or permissions. You can trademark your company name if you wish to keep it safe. You must register your business with the state and pay a fee if you choose to create an LLC. Last but not least, getting an EIN is free and can be done either mail or online.
A Tax ID number, commonly known as an Employer Identification Number or EIN, can be acquired without cost in Tennessee. You can submit a form SS-4 by mail or apply for one online through the IRS website.