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Legal Topics For Small Businesses

How to start a small business, legally?

How to start a small business, legally?

Every future business owner, when starting a business must obey certain legal regulations, but that’s probably the last thing on good-courseentrepreneur’s mind and that is the cause of many problems that will appear latter.

We will present you few tips and for your benefit it will be wise to read them.

If you’re planning to start a business, you will need to acquire business license or permit in order to small business fully operates. DBA registration or “doing business as” can be acquired at county or city level, fire department license, health department license, and wine, beer and liquor license. State and local government will provide you these licenses.

In order to have successful business you must contract an attorney, who is an expert in that area and who will give you advices from time to time. Next thing what you must decide is the form of your organization. Should it be a corporation, partnership or sole proprietorship and don’t forget about tax status.

If your organization is named after fictitious business name, you will need to register it with the county, as the Trade Name Registration Act requires from you, but if your business operates by your personal name, then this type of action won’t be necessary, because most states don’t require this.virgin-media-business

Later you must decide on legal structure of your business, here you have few options, you can decide between:

Sole proprietorship – where you operate business by yourself and you can use business name or your own name,
Partnership – here you can partner up with one or more partners and together you will make partnership.
Corporation – this type of business structure will provide you to separate your personal assets for yourself.
Society – all your profits and funds will be for society’s purpose, since you will be operating non – profit organization.
Co – operative – if you decide to use this business structure, people who use and have benefits from your services will democratically control business.
weloveRB-2-3What’s big advantage of corporation and partnership is that more than one person is responsible for the debts. Also, any member in this chain is a subject to a replacement and that won’t affect the business.

When you register with your state, you must acquire tax identification number, unemployment and disability insurance and worker’s compensation and what is also important thing, you must learn legal steps in order to employ people.

If you plan to open a business in residential area, you will need to seek a permit from a zoning board, but if you choose to open a business within your home, you will not need this.

There are various types of insurances, so maybe it would be wise to insure your business, you should discuss this subject with your agent. It is necessary to open a bank account, where you will be depositing the money you earn, and this money can be used for paying the bills of your business. It is important to create an accounting for your small business.