​

Here there are several types of company structure, but here you will learn the best path if you are starting your business, whether cleaning, painting, gardening or others. 

​

There are many questions in our midst about the difference between DBA and legal structure types of companies. Know that the DBA (doing business as)It isjust a certificate saying the legal name youyou are presenting your business. DBA is not a type of business structure. It doesn't give you any legal protection. If you have any lawsuits, you will be responsible for your company. 

The most basic business structure to open your company is Sole Proprietorship, “sole proprietorship”. It's practically the MEI here. This type of company does not pay taxes directly. You declare your earnings as an individual. The biggest limitation of Sole Proprietorship is that you cannot make debts in the name of the company, and if something happens your personal assets are at stake. If you choose this type of structure, follow the steps below:

 

1- Name

 

Here in the state of Massachusetts the owner can use his name for his company. But if you want to choose another name,It isIt is important to choose one that is available. for that youyou can check the websiteSecretary of Stateto make sure it doesn't have any other names like it.

​

2- Register the name of your business

​

If you have chosen another name for your business, you must register a business name (DBA) with theCity Hallfrom where you live. This process is inexpensive and very simple (Fall River pricing is $50 per application, plus $10 to have a certified copy foryou) Usually the application isjust one leaf! Remember that in these forms it isonly the use of black pen is allowed. (Go here for an example of the Fall River City form)  (You only need an ID for this step) 

 

3- Obtain licenses if necessary

​

Depending on your business activities, your business may need to obtain business licenses or professional licenses. The state of Massachusetts provides a sitewith all professions that require a license.  

​

4- Employer identification number (EIN)

 

Sole proprietors who wish to have employees need to obtain an Employer Identification Number, or EIN. This is a nine-digit number issued by the Internal Revenue Service (IRS). To get one, you must have ITIN or Social. All companies with employees are required to report wages to the IRS using their EIN. Applications for an EIN can be completed online atIRS website.If you If you are not going to have employees, you are not required to have an EIN. However, having one helps to open bank accounts separate from your personal stuff. 

​

Next steps

​

1. Open a business bank account with EIN, to keep your business and personal finances separate.

2. Take out general liability insurance. Since sole proprietors are personally responsible for all debts and obligations of the business, a business liability insurance policy may be the only form of financial protection against the unforeseen. Contact an insurance agency that can offer you one. 

3. File your taxes annually. Contact an accountant who can help you. 

​

As your company grows, it becomes more interesting to be able to better separate your individual from your legal entity. 

​

The simplest model in this line is theLimited Liability Company (LLC), “Limited Liability Company”– equivalent to our LTDAs. With one of these, you can raise loans on behalf of 

company and the obligation to pay remains with the company, not the owners. This structure can be formed by one or more people. LLC must be registered with the Secretary of State and costs $500 to form one. Access form here.

​

If you want to learn about other types of business training, and various other resources for entrepreneurs, check out the state's website.here. Remember that the page can be placed in Portuguese. 

​

The Consulate General of Boston also brings a lot of information abouthow to undertakehere in MA.

​

​

If you have any questions about how to open your business, get in touch with an accountant to guide you better! 

​

​

​