Starting some business whether small or bigger is always exciting and challenging. After deciding on thorough business structure and making a good business plan it is important to consider legal requirements. It is necessary that your new business operates with all the required permits and licenses.
It is very often that inexperienced, independent contractors are unaware of these legal requires. Here are some basic ones everybody should review and understand before starting any kind of business.
Registered business name
This regulation lets your government and state under what name you are operating your new business. There is DBA as “Doing Business As” and FBN as “Fictitious Business Name” in the registration process and these specific registration rules vary from state to state. Sole proprietor operating under own name are only ones who don’t need to register. If there is a plan for operating nationally and providing online services than it is wise to consider about getting your business name trademarked. This is not a legal requirement but it provides strong protection to any type of brand.
As any business needs to open a business bank account, apply for business licenses or file tax returns in order to do that first step is applying for an EIN or Employer Identification Number. This is required for any business that operates as partnership, corporation or has certain employees. A sole proprietorship is in no need to obtain EIN. This is done in IRS and any independent professional needs to be responsible and aware of tax obligations like self-employment, estimated, income and excise taxes.
Local and state taxes
These ones vary from state to state also depending on business structure. For example, if there are employees you are responsible for paying state unemployment taxes. Also there are taxes like payroll, sales, income and property taxes.
Business licenses and permits
Depending on business location or industry license will be on federal level or on the state level. A business that is connected to any sort of activity that is regulated by a federal agency requires a federal license. State permits are various and it depends on the location.
Business regulations and laws
No matter the size of your new business some regulation that applies to the large corporation could include your smaller business too. Laws like these are those regarding marketing, finance, privacy, property and advertising.
There are a lot of legal forms, reports and details when starting a business, no matter the size of it, so the recommendation is always to search for some guidance and support from professionals who will ensure that your business sets up correctly.