You’ve started on the journey of entrepreneurship, and now you’re wondering how to register an online business. Maybe you’ve already made some sales, and someone asked you if you were registered; perhaps you’re just trying to get ahead of the curve.
Either way, registering your online business is an integral part of the entrepreneurial journey, and important in protecting yourself and your business.
What does it mean to register your online business?
Essentially, registering an online business is turning your business from a hobby to a proper corporate entity recognized by your local government. It’s planting your flag in the world of e-commerce and marking your business as the next big thing.
Why should you register your online business?
Registering your online business makes you official, and that comes with a lot of benefits, from small bonuses like owning your name and establishing who legally owns the business you’re starting.
Incorporating your online business also separates you from the business legally, meaning that the business legally wouldn’t drain your personal assets to cover costs or expenses if something were to happen.
Additionally, registering a business locks it in and gets you ahead of the curve. Once you find success, you’ll be happy to be registered while filing taxes or marketing your product.
How to Register An Online Business in 5 Easy Steps
1. Determine What Kind of Business You Are
Depending on local laws, there are many different kinds of online businesses that you can register as. Still, the most important one is identifying whether you are a sole proprietorship or not. A sole proprietorship is a business that is owned and started by a single person: you. If you have a partner or a team looking to start an online business together, you’ll want to incorporate. This will ensure that your business is set up so that anyone who is registered is considered a partner in the government’s eyes.
If you’re not 100% sure, Ownr has a quiz that can help you determine what you need.
2. Determine the Levels of Government You Need to Contact
Different businesses need to be registered with different governments’ levels, whether that’s federal, municipal, provincial, state or any other official government entity. Depending on the size of your online business and your growth potential, it varies, but there are government resources to help you figure this out below:
U.S. Small Business Association
Government of Canada Service Page
EU Points of Single Contact Guide
If business registration seems intimidating, you’re not alone, and that’s why there are a number of dedicated companies that will ensure your business registration is smooth. Check out Ownr, Founded, and Incorpmaster for help registering your online business.
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