How To Register New Business

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Starting a new business is always an exciting experience. However, before you can begin, you need to decide what form your business will take—sole proprietorship, partnership, corporation, etc. If you choose the corporate form, then you will need to incorporate with the appropriate government agency. All house cleaning businesses must also register with the government to pay taxes. In fact, you may have to register with many different levels of government—local, state, and federal. You can usually register online or over the phone.

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Settle on a corporate form. You can run your house cleaning business as a "sole proprietorship." This means that you are the sole owner of the business and are responsible for all of the business's debts. For tax purposes, you will use your Social Security Number and report your business income on your Form 1040.^[1]
- You could also create a limited liability company (LLC). With an LLC, you can protect yourself personally from lawsuits. If an LLC is sued, then the person suing can only get your business assets, not your personal assets. To form an LLC, you need to file "articles of organization" with your state's Secretary of State or equivalent office.
- If you want to form a house cleaning business with another person, you could think about forming a partnership. A partnership is a business formed by two or more people. However, individual partners are legally liable on the debts incurred by the partnership.
- Choosing between the different forms is a complicated process. You will also need to consider the tax advantages or disadvantages of each. For help, you should meet with a lawyer.^[2]
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Get a state business tax account number. You will need a tax number from your state so that you can pay state taxes. You should visit your state's Department of Revenue to register for an account number.^[4] Generally, you will be responsible for paying the following taxes:
- corporate taxes
- employment taxes
- personal income taxes
- sales, property, and use taxes
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Obtain necessary licenses and permits. In the U.S., you need to register a house cleaning business with a state agency. You can find your state's agency by visiting the Small Business Association's website, which has a list of states. Click on your state.
- The SBA website is here: https://www.sba.gov/starting-business/business-licenses-permits/state-licenses-permits.
- Contact the agency to find out what permits or licenses you need in order to run your house cleaning business. You should get these before opening your business.
- You might just need a regular business license, or you may need to get a special cleaning business license. You should also check to see if you need to be bonded.^[5]
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Register with a city or county. You may also have to register your business with your city or county.^[6] Cities and counties can apply their own taxes, which you must pay.^[7] You can check with the city office or town manager. There should be forms for you to fill out if you must register with them.
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Get a "doing business as" (DBA) name. You may need a DBA if you plan to operate using any name other than your own name. For example, if you want to advertise as "Charlie's Cleaning Company," then you will need to file for a DBA with your county or city.^[8]
- You should contact your county clerk or state business office and ask if DBAs are required. Not all states require them.^[9]
- If you are required to file, then the government office should have forms you can fill out.
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Set up your business. Registering a business is only the beginning. You also will want to spend some time thinking about registering your trademark or business mark, as well as determining how often you need to file reports with your state.
- See Register a Company for more information.

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Identify your corporate form. In the U.K., you have several options for how you can organize your house cleaning business. For example, you can form the following businesses:^[10]
- Sole Trader. You are the sole owner of the business, though you may employ other people.
- Private limited company. You appoint people to run the company but can also be an employee.
- Business partnerships. All of the partners share responsibility for the business.
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Settle on a business name. You can operate under your own name, or you can come up with a business name to use.^[11] If you choose a business name, then it can't be the same as another registered name. It also can't be too similar to another registered name.^[12]
- Check the Companies House register to search for names at https://beta.companieshouse.gov.uk/.
- Business names also cannot be offensive or contain sensitive words.
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Register your sole trader business. Your registration process will differ, depending on whether you have sent Self Assessment taxes to the government before. For example, follow these rules:^[13]
- New sole trader. If you've never sent Self Assessment tax to the government before, then you can register at the HMRC website here: https://www.gov.uk/new-business-register-for-tax. Click on "Start Now."
- New sole trader who has sent tax returns before. You should register by completing form CWF1, which is available from the HMRC website. You will need your ten-digit Unique Taxpayer Reference (UTR), which will allow HMRC to link all of your accounts.
- Former sole trader. If you want to start back up again, then you can register using form CWF1. You'll also need your ten-digit UTR.
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Register other businesses. You might set your business up as something other than as a sole trader, e.g., a business partnership or a limited company. In that case, you will need to register using the following methods:
- Business partnerships. You can register for self-assessment with the HMRC at the same website as a sole trader.^[14]
- Limited companies. You must appoint at least one director and one shareholder. You also must draft articles of association, which are rules about how you will run the company. You will also have to register with Companies House and also have to register for Corporation Tax.^[15]
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Avoid delay. You should register as soon as possible after starting your business. You should register no later than October 5 of your business's second tax year.^[16]

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Identify your preferred corporate form. Canadian businesses can take many different forms. The form will impact your tax liability and your legal liability. If you don't know which form to take, then meet with an attorney.
- Sole proprietorship. This is an unincorporated business that is owned by only one person, who makes all of the decisions and receives all of the profits. You can bill clients under your own name. You report all income and expenses on your T1 income tax.^[17] As a sole proprietor, you are legally responsible for all of your business's debts.
- Partnership. Two or more people may form a partnership in which each contributes money and labor and receives profits in return. You can form a partnership with a simple written agreement. Each partner receives a share of the profits and reports the income on their own tax return.^[18] Partners are generally responsible for all of the partnership's debts.
- Corporation. A corporation is a legal entity separate from its owners that files a T2 corporation income tax return. A corporation has "limited liability," which means the owners are not personally responsible for the corporation's debts. You must file "articles of incorporation" with the appropriate provincial, territorial, and federal authorities.^[19]
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Choose between federal and provincial incorporation. If you form a corporation, then you need to incorporate. (Sole proprietors and partnerships do not need to incorporate). You should choose whether to incorporate with the federal government or with a provincial/territorial government.
- By incorporating federally, you can do business across all of Canada under one business name, even if someone in a province is using the same name. Federal incorporation, however, requires more extensive paperwork.^[20]
- If you incorporate with a provincial government, you need to register your business with every province or territory where you do business. If your house cleaning business is small, then provincial incorporation might be ideal.
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Incorporate online. If you choose to incorporate federally, then you can incorporate at the Corporations Directorate website. Each province or territory should also have a website.^[21] Before incorporating, remember to do the following:^[22]
- Pick a name. Your name must be distinctive and not misleading. You should perform a Nuans name search to see if your name has already been chosen.
- Complete articles of incorporation. A form is available to use.
- Establish an address. This is where your records will be kept and where you will receive official correspondence.
- Form the board of directors. Directors must meet certain requirements, which you can find from the federal or provincial governments. Generally, directors must be at least 18 years old and not judged incompetent by a court. They also must be individuals and not be in bankruptcy.^[23]
- Pay the fee. You must include the filing fee with your application.
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Check if you can register your business online. All businesses must register primarily for tax purposes. This includes sole proprietorships, partnerships, and corporations. You may be able to use the Business Registration Online (BRO) to obtain a business number (BN) as well as to register with four major Canada Revenue Agency program accounts—corporation income tax, goods and services tax, payroll, and import-export. You can register online if you have the following:
- a valid social insurance number (SIN)
- an income tax return on file with the Canada Revenue Agency
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Gather helpful information. Before registering, you should gather the following information, which may be requested as part of the registration process. Get the following:
- social insurance number of all owners
- business name
- business number (if you already have one)
- description of your major business activity
- date of incorporation
- certificate number
- corporation name
- jurisdiction
- number of employees
- date employees first received wages
- type of pay period (weekly, monthly, quarterly, etc.)
- payroll service, if you use one
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Apply by mail instead. If you can't register online, then you can register by mail or fax. Complete Form RC1, Request for a Business Number, which is available online for download. There are also separate forms for getting a GST/HST account, a payroll account, and an import-export account.^[24]
- After completing the form, you can mail it or fax it to your nearest tax center (TC) or tax service office (TSO).
- You can find your nearest TC or TSO by visiting http://www.cra-arc.gc.ca/cntct/tso-bsf-eng.html.
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Call to register. You might want to register using the telephone. If so, you can call the Business enquiries line at 1-800-959-5525. You should download Form RC1 and be prepared to answer any question that appears on the form.^[25]
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Register your business with your province. You also need to register your business with your provincial government. If you apply for a BN and program accounts online, then you can transfer to online systems to register for British Columbia, Nova Scotia, or Ontario.^[26] For other provinces, you can call the appropriate provincial registrar.
- You should contact the provincial registrar for each province or territory that you intend to do business in.^[27]

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Do I need an LLC for a cleaning business?

Raymond Chiu is the Director of Operations for MaidSailors.com, a residential and commercial cleaning service based in New York City that provides home and office cleaning services at affordable prices. He has a Bachelors in Business Administration and Management from Baruch College.

House Cleaning Professional

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Think about whether you'd prefer to set up your business as a sole proprietorship or a limited liability company.

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