Important: All countries, states, regions, and county’s have different laws when it comes business licensing for teeth whitening professionals. Do your own research to make sure you are following all the legal requirements for your business.
Before you start operating your professional teeth whitening business, it is important to set-up your business legally, or else you will be operating an illegal entity which will likely result in fines and other trouble down the road.
What does a business entity do?
A business entity such as a Sole Proprietorship, Partnership or LLC signifies 3 things:
- Your business legal structure or who legally takes responsibility for your business.
- Sole Proprietorship – You take full responsibility for your business.
- Partnership – You and your partner(s) take equal responsibility.
- LLC – This creates a separate entity. (Best Option!)
Note: You will have to personally determine how you wish to set-up your business. This determination is personal. There are benefits to all formations.
- How your business is organized and who owns the business. For example, do you own 100% of your business or do you have a business partner that you are working with? How about investors? All of these will affect how your business is organized.
- Sole Proprietorship – The teeth whitening business is organized directly under you.
- Partnership – The teeth whitening business is organized directly under you and someone else.
- LLC – The teeth whitening business is organized under its own entity with 1 or more owners of the LLC.
- How will you be taxed on your business profits? Your legal structure will also determine how the government will collect taxes from your business.
- Sole Proprietorship – The business is taxed along with your other income that you earn from another job or business.
- Partnership – Similar to Sole Proprietorship, however the profits are first split between partners and then taxed accordingly.
- LLC – You choose how your business is taxed. It can be taxed like corporation meaning the business itself is taxed separate your personal taxes or it’s taxed like a Partnership.
This may make forming a business entity seem complicated, but to make it easy for you we recommend filing for an LLC or Limited Liability Company because it 1.) it gives you the best protection in case of a lawsuit or other liabilities. 2.) can be organized with 1 or multiple owners of your business and 3.) allows you to choose the way you want to be taxed.
Filing for an LLC is easy; you can do it yourself through your State Government website or you can go through a cheap legal service like legalzoom.com
To file for an LLC online follow these steps.
- Type “file for LLC (Insert Your State Name.)” on Google. Replace the text with your state name.
- Click on your state government official website it will have a “.gov”
- Follow the easy to follow instructions and file in 10 minutes.
- Pay the $150 fine for filing for an LLC.