Once you settle on a name you like, you will need to protect it. First, you need to register your entity name at the state level. Typically, the information you will need to file with your state agency includes:
a. Business Name
b. Business Location
c. Ownership/Management Structure (for LLCs, this is typically your Articles of Organization)
d. Registered Agent Information
e. Filing fee
Additional required documents vary by state and business structure, see chart below for a quick breakdown.
Need help finding where to register on the state level? Click here to go to the SBA website!
Your designated Registered Agent receives tax forms, legal documents, official government correspondence, and summons (Service of Process) on your agency’s behalf. For most independent agencies starting out, the business owner acts as the Registered Agent. However, some business owners prefer to use a Registered Agent Service to assist with maintaining effective corporate compliance (i.e. informing you, the business owner, of legal notices and/or reminding you to file your annual reports).
After the state receives and processes your formation paperwork, you’ll receive a certificate confirming that your new company officially exists.
Get Your Federal and State ID Numbers
Your designated Registered Agent receives tax forms, legal documents, official government correspondence, and summons (Service of Process) on your agency’s behalf. For most independent agencies starting out, the business owner acts as the Registered Agent. However, some business owners prefer to use a Registered Agent Service to assist with
maintaining effective corporate compliance (i.e. informing you, the business owner, of legal
notices and/or reminding you to file your annual reports).
Federal ID:
You will need an Employer Identification Number (EIN), also called your federal tax ID, in order to pay federal taxes, open a business bank account, obtain carrier appointments, apply for business licenses, and hire employees. We recommend using this guide to get you started! In a few instances, insurance agencies register with the federal government for trademark protection once their business is formed. Consult your attorney or tax accountant for more information and guidance.
State ID:
To know whether you need a state tax ID, research and understand your state’s laws regarding income taxes and employment taxes. The process to get a state tax ID varies greatly by state. Visit your state’s website to identify whether you need to get a state tax ID number in order to pay state taxes.
Foreign Qualification:
If you are doing business in more than one state, you might need to file for “foreign qualification” in the additional states where your business is active. To foreign qualify, file a Certificate of Authority with the state. Many states also require a Certificate of Good Standing from your state of formation. Each state charges a filing fee.
Local Agencies:
You might also need to file for licenses and permits from the county or city in which your business is located. Local governments determine registration, licensing, and permitting requirements, so visit your local government website and consult an attorney to make sure you aren’t missing anything essential based on your specific location.
This article is made available by ASNOA for educational purposes only as well as to give you general information and a general understanding of the law. It does not aim to provide specific legal advice. By using this blog, you understand there is no attorney-client relationship between you and ASNOA. We strongly recommend consulting a lawyer for individual needs of your business.