Starting a business can be exciting. As a small business owner, your job is not only to run the forefront of the business, but also to make sure your business is operating properly under legal requirements. These requirements may be difficult to wrap your mind around in the beginning. However, there is an easy way to go about it. You can consult with a business lawyer to make sure that you cover all of your needs.
Additionally, we have detailed the steps in making sure you meet some of the major legal requirements for your small business.
Register A Business Name
The first thing you will have to do is register a legal business name. This allows the government to have a record of what name your business is operating under. Since you own your business, you will want to make sure your business name is something that you would like to use as a means of branding for your business. This is called a DBA name, or a “Doing Business As” name. However, it is important to note that registering a business name does not give you a trademark. While not required by law, you may want to consider getting your business name trademarked. When founding a company, you are in charge of your business. You are the one who is able to follow the legal requirements for your small business. Registering a business name is the first step.
Set Up An Employer Identification Number
An Employer Identification Number, or EIN, is necessary for taxing purposes. The EIN is akin to a Social Security Number for a business. You are able to register for an EIN online. This step is not required, but it does help in separating personal and business liabilities. Setting up an EIN also makes it possible to start a business bank account, file tax returns, and apply for a business license when the time comes. This also creates a separation between your business liability and your personal liability. An EIN can be beneficial to following legal requirements for your business.
Set Up Business Taxes
Every business must pay taxes if there is a net profit or loss. Your small business must pay local and state taxes with the proper documentation. Look up your state’s tax requirements because this varies from state to state. Most of these tax forms require information about your small business’s payroll, income, sales, and property tax. This all depends on the structure of your business as well as the state you live in. Pay careful attention to your state’s tax requirements, as taxes will be your business’s legal foundation.
Register A Business License
Depending on your business, you may need to have a business license. Legally, your business may require a federal license. Businesses that are involved in activity that is supervised by a federal agency, require a federal license. Sometimes this goes hand in hand with state licensing, and other times it does not. For example, starting a medical practice requires many certifications and licenses. This is why it is so important to do your research before attempting to create a business license, because you may be able to get double the work done. Registering a business permit or license is a crucial part in following the legal requirements for a small business.
Follow Other Laws And Regulations
Small businesses and large businesses are not so different when it comes to laws. As a small business owner, the laws that are put in place are made for your business’s protection. This includes advertising, marketing, employment and privacy laws. Specifically, certain states require that you carry workers compensation insurance. According to Noll Law Office, “this requirement is important to offer coverage just in case any employees suffer from a work-related injury while on the job.” While these requirements your business may be tedious for you to fill out paperwork, it will be worth it in the long run. Your small business can thrive once it is started up with the proper laws and regulations put in place.
Small business owners can get caught up in the excitement of starting a business. While exciting, small businesses come with legal regulations that may seem tedious at the surface, but they are worth it in the long run. Register your company name with the local or state government entity. Acquire an EIN number and prepare to report business taxes. If necessary, secure the proper business licenses to operate. Following the proper legal rules can make a big difference in how smoothly your business runs. These steps can help you meet many of the legal requirements for small business. Of course, you should consult with a business attorney for other requirements that are unique to your business or area.