Just like any business, you must register your franchise in the state it operates. In other words, register your franchise in every state that you wish to operate in.
- Read the franchise agreement – This gives you the option to choose one of the many business structures that are available to register your franchise under and to follow the legal compliance. For instance, you can choose from a sole proprietorship, corporation, limited liability company or partnership.
- Understand the tax benefits – You may speak to your tax advisor or accountant to understand what kind of benefits and protection you wish to receive from your franchise business. As some structures provide more personal legal protection for you as the owner while others provide more protection for the business’s industry
- Pick the right business structure – Once you understand the different benefits and identify what best suits you, you have to prepare to register your franchise business in that state. The paperwork will differ based on your choice of business structure.
- Prepare the necessary documentation – For a corporation, prepare the articles of incorporation; for a limited liability company, prepare the articles of organization; and for a partnership, you need to put together a partnership agreement. For a sole proprietorship, no specific documents are required.
- Reach out to your state’s secretary of state – Hand over all the paperwork for registering the business name, business location and owner information. Obtain the registration application for the relevant franchise structure you wish to register. Since most secretary of state offices are online, or you can contact the office by phone or email.
- Submit the completed application – Submit all the supporting documents along with your application and registration fee.
Source: Small Business
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