How you register your business will depend on how many owners actually own your business, employees and tax responsibilities.

Fictitious Name

A fictitious name (also called “doing business as” or DBA) is required if you plan to run a business under any name other than your own. Fictitious names are claimed as sole proprietors for tax related purposes. However, it offers no legal protection. If your company is sued and you lose, your personal possessions can be claimed as part of the reward. Registration typically costs less than $10.

Limited Liability Company (LLC)

An LLC is just like a fictitious name registration but offers more legal protection. In the event of a lawsuit, your personal possessions can’t be touched, only what the company owns. Registration costs are a bit more than a fictitious, ranging anywhere from $100-$200. You also have to submit yearly reports which normally costs about $50.

Incorporation

Incorporation provides better protection when partners or several parties are involved. There are several tax and management restrictions when incorporating. Check with your local business bureau. Incorporation provides easy ownership transfer in the event of a death or related event. Raising funds is possible by the sale of stock. Registration costs generally between $200 – $500.

Non-Profit

A non-profit organization begins with a fictitious name, LLC or incorporation status. The only difference is you must file special paperwork to request tax exception from the government. You may also consider hiring an attorney. Check with your local government business organization for special restrictions on non-profit status.