When you are opening your own company, you will find that there are certain things you must do. For instance, you might need to find accounting services in Malaysia to handle all of your accounting needs. But, aside from that, you will also need to get a business license as well.
A lot of new business owners mistake registering a business and getting a business license as the same thing, but they are actually different from each other.
A business license just allows you to operate within the state while registering your business means that all of your company’s information- such as the name of your business, your tax information, among other things- are put in the government’s database.
Read on to find out more about this topic.
As a business owner, you will need to register your company within the country or state that you are going to conduct business in. Although registering your business entity will not automatically copyright your business name, you will actually be given the authority to create bank accounts and contracts under the name that you used to register.
If you are going to establish a corporation, you will not only register your first business name, but you will also register subsequent business names under your corporation as well.
Depending on your own country, your business license will allow you to operate within the county, state, or country where your company resides. You have to know your local laws because there are some states (for example, Houston), that will allow you to conduct businesses even without a license (but only for certain establishments).
There are also some local governments that will require anyone who conducts businesses within their jurisdiction, a license to operate even if the company is not originally within that state.
Websites such as the Small Business Administration has a perfect guide to help you know what licenses you need to get in order to conduct business.
Of course, when you are running your own business, you will also be held liable for taxes as well. Depending on your business model, you will be required to get a Tax Identification Number.
If you happen to operate the business alone via sole proprietorship, your own social security number will be used as your EIN. If you are running a company or large corporation, however, the Internal Revenue Service will be the one to give you a new number specifically for your new business.
There are certain professions that are required to get not only a business license, but also a professional license sanctioned by the state as well. Such professions include private investigators, doctors, among many others.
Even though there are some states that would no longer require business licenses to operate such kinds of work, they would still need pertinent professional licenses before they can operate.