Before the formation of your business as a legal entity can begin, you will need to choose the type of structure best suited to your company. Different entity types include the Corporation, Limited Liability Company (LLC), General Partnership, or Sole Proprietorship. RegisteredAgent.net can help you when filing at the state or county level when forming your company, but first we recommend that you consider the differences between each business structure. For more information, see our entity comparison page.

Choosing a name for your business can be important from a communication and business image standpoint. Names that are descriptive of the goods and services provided make sense, but cannot always be protected from use by others. Using your own name has its own pitfalls. If your business closes, as some new businesses do, customers may associate your name with the failed business, making it difficult to start another business or obtain credit in the same community.

Once you have named your new business, you or an attorney should check with your jurisdiction’s secretary of state office (or similar state authority) to determine if the name is available for use. Many states will reject your application to register your company if the name is confusingly similar to another company already registered. Finding out ahead of time if your name is available will save you both time and money.

When choosing a business name, it is also important that you follow the state requirements for names and corporate indicators, such as “Inc.” or “LLC.”

Corporations and limited liability companies are governed by the statutes of the state in which they initially registered to do business. This state is often called the company’s home state or domestic state. While some states, like Delaware or Nevada, offer more advantages for companies due to their pro-business legal environments, choosing a domestic state will require many considerations. Many smaller businesses choose to incorporate locally to avoid the extra costs and complications incurred by operating as a foreign corporation.

Things to take into consideration when choosing a home state:

• What is the cost to form your company initially?
• What information is deemed public by the state?
• Will you be doing business in other states?
• What does it cost to qualify your entity in other states?
• What are the annual requirements once you have set up your company?
• What are the tax requirements?

Choose a registered agent that can offer you additional services such as assistance with annual reports and other compliance filings, online software to manage your entity, and a customer service team that can answer your questions along the way.