Entrepreneurs in the e-commerce industry must understand how to register a company, especially when just beginning their business venture.

When your online store is recognized as a legal entity, You’ll be covered if your customers or competitors decide to pursue legal lawsuits against you.

The argument could be a bit daunting if you’re unfamiliar with registering your company. This article will guide you through the steps you’ll have to consider when considering writing an unincorporated company in the US.

Soon you’ll know how to register your business to gain the stability and legal security that those new to getting started with an online business require.

Do I Need to Register My Business?

While you may manage a business without registering it, it’s a great option to integrate it once your business expands. The registration of companies is a formality before the government and ensures that your assets and those of your business are legally secure.

Steps to Register a Business

Registering your business isn’t too tricky, but it will require you to follow the correct steps. The process to write your business in the legal form of a company requires the following:

Naming Your Business

Each entrepreneur running an online store will have to start registering their company by choosing the right domain name for their online store.

It’s crucial to create an appealing name for your store. It should be likely to draw your customers’ attention and leave an impression. Be sure your name is relevant to your industry and one that can be built a marketing plan around.

Coming up with a company name that can stand through the ages can be a challenge. Look up some of your competitors and study the words they choose to use. Note down the online business names you like, and then consider how your concept is compared to it. Is your idea distinctive from the rest? If it does not, then what could you create to make it stand out? It is also possible to use a business name generator to generate suggestions for your company’s name.

Registering a Business Name

After you’ve come up with the perfect name for your business, you’ve already mastered one of the most challenging aspects of registering a company. It’s crucial to ensure that the name of your business hasn’t been listed with the United States Patent and Trademark Office (USPTO). The USPTO will deny any registration of an existing business name registered with their system. Additionally, you’ll lose any processing fees associated with the application.

To avoid these problems, check your local directories of businesses to determine if the business name you’d like is in use. You can also utilize the USPTO’s free tool to determine if your company’s name is in use.

Future-Proofing Your Business Name

If you’ve stumbled across an unforgettable business name in the market, take some time to consider your company’s long-term objectives. Do you believe that the title you chose for your company will be able to endure the test of time? Does it stand up to the difficulties of the test of time?

Beware of picking a business name that originates from a trend. If you choose to call your business on the internet “Selfie Stick Corporation,” you might see some success at first, but how famous will your company be over the next few years?

It’s crucial to consider the longevity of a name before deciding to create your company, as it’s challenging to alter your name later. The process of changing your name once you’ve established an e-commerce business can be a headache legally and could create confusion for existing customers.

Picking Your Business EntityOnce, you’ve settled on the name you’ll use for your e-commerce company, you’ll have to select the kind of business entity that best suits the online store you’re operating. There are two choices; either registering your business as an LLC or incorporating. There are some distinct distinctions between the two options, which is why we’ve broken down the essential points you’ll require to understand so it is possible to make the right choice for your online business.


Establishing your company as an LLC requires less paperwork than when you incorporate, meaning that you’ll have more time to concentrate on getting your store on the right track.

If you’ve registered your company with an LLC entity, it will not be personally accountable for any debts that the company accrues. This means that personal assets, such as savings, vehicles, and homes, are protected if the worst happens to your business.

Another reason to incorporate as an LLC is the ability to lease your personal property to your company. If, for instance, you manage your online business using a home office, it is possible to use that space as an expense for the business. You’ll save cash through this process that can be invested in other areas of your enterprise.


When people think of corporations, they imagine multi-million-dollar corporations that employ hundreds of people; however, incorporation means that you’ll transform from a sole proprietorship to an organization legally acknowledged as a legal entity.

Businesses have two primary choices when they incorporate: the option of registering as an ‘S’ company or a ‘C’ company. There are no requirements for the registration of either one, and it’s up to which choice is the best for your online business.

Registering your ecommerce company with an S corporation gives you a choice to pass through taxation, which means that your online business won’t be taxed at a corporate level. Instead, you’ll pay tax on your online business’s earnings but not on the company itself.

However, C-corporations are regarded as distinct entities concerning taxation. That means your online business is subject to ” double-taxation. This means that you’ll pay tax on your business’s profits and be taxed on your earnings.

No matter what structure you select to establish your business, be aware that, it’s not fixed in the ground. As your business grows, you’ll be able to move from one structure to the next by the requirements of your e-commerce business.

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