Choosing to incorporate and register your business inspires more confidence in your customers and offers protections that a sole proprietorship doesn't. Get the best solutions for you to register a company with the following options.

1. Pick your business name

It probably goes without saying that your online store needs a name, and choosing a legal name for your business that’s both available and on brand can be challenging. When brainstorming your business name, it’s best to cast a wide net at first, then hone in on your top ideas. (Need some help coming up with ideas? Consult Shopify’s business name generator).

Once you’ve nailed down a few favorites, you’ll need to check if they’re available. Conduct a search in your local jurisdiction’s business database to see if any other businesses have registered under a similar name.

Other important considerations when choosing your business name include:

• Social media. Are relevant social media handles available, or is someone else already using your chosen name?

• Domain name. Conduct a quick domain name search to see if your branded URL is available.

2. Choose a business structure to register

Before you can register your business, you need to choosing your business structure and incorporate as such. Popular business structures include limited liability company (LLC), corporation (including C corp and S corp), general partnership, and limited liability partnership (LLP).

Each business structure requires a different process for registration. Sole proprietors, for example, don’t need to do anything. Corporations, on the other hand, need to file articles of incorporation or similar corporate documents.

3. Register for an employer identification number (EIN)

Regardless of business structure, an employer identification number (also known as a tax ID number) is critical. It protects your Social Security number (SSN) and establishes your business as a separate legal entity. This means your business can build credit and hire employees.

You can apply for an EIN on the IRS website.

4. Check requirements for each business location

Just as each business structure has its own registration process and requirements, each location has its own parameters as well. It’s important to check with federal, state, and local government agencies to find out what you need to legally register your business.

Additional steps may include permitting requirements, licenses, articles of incorporation, forms, and fees, among other things.

5. Register for taxes

In most places, businesses have to pay sales tax and potentially other applicable taxes or fees. Because sales tax varies by state, you’ll need to register in each state where you plan to sell.

Some states don’t collect sales tax, which means store owners do not have to register a business for tax purposes. These states include:

• Alaska

• Delaware

• Montana

• New Hampshire

• Oregon

For the remaining states, check with them directly to find out what the process entails.

6. File for any trademarks

If you’re launching a brand or product with a unique name, logo, feature, or slogan, you may qualify for trademark protection. A trademark is “anything that’s considered a source identifier,” helping consumers recognize your brand or products.

While you can establish a trademark “unofficially” by doing business and establishing a reputation, the safer approach is to register with the corresponding trademark office, either on your own or with the help of a trademark attorney. This ensures that your trademark is protected from any other businesses that might seek to use your idea for their own benefit. At minimum, be sure to trademark your business name with both the state and federal government.

Tips for registering your business

As you proceed through the process to register a business, here a few things to keep in mind.

Get organized

Before you start filling out any application, create a list of what you need. This will include things like your basic personal and business information, EIN, forms, licenses, permits, fees, etc. Have this information handy so you can fly through the application process.

Hire help

For more complex business registration (e.g., for heavily regulated industries), you may want to enlist the help of an expert. Qualified tax professionals and business attorneys can guide you through the process, answering questions along the way and even taking care of some of the steps for you.

Stay up to date

It’s always best to check directly with official location- and industry-specific sources for the latest information regarding business registration requirements. Make it a habit to check on your licenses, permits, and registrations each year—for accountability and to help you remember, you might do it at tax time. Set up calendar reminders for any expirations or renewals as well.