Not all businesses are structured in the same way. One of the first and most important decisions of any business is to legally register your business.
If you are already selling your products or services independently, then you are technically a sole proprietor. As a sole proprietor, you are legally authorized to generate sales revenue. But as your business starts to grow so does your risk. You will have to consider registering your business as a limited liability company (LLC). This form of registration gives your business a new level of protection for you as a business owner. In addition, people rely more on your business because you are perceived as responsible.
For more information on how to register a limited liability company, visit the Arizona Corporation Commission, www.azcc.gov.
If you do not register your business as an LLC, then I recommend you at least register your business name. Failure to register your business name puts you at risk. Someone else may register that name and it will no longer be available. You can register your business name with the Secretary of the State of Arizona at www.azsos.gov.
After registering it is important to get your employer identification number or also known as EIN. This number is issued free of charge from the Internal Revenue Service at www.irs.gov/smallbiz.
And finally when you are ready take your business records and EIN letter to open a business account.
These are some small steps you can take that will have great benefits for you as a business owner!
If you are unsure about this process always talk to a professional.