When you are starting out on a new entrepreneurial endeavour or a new business venture, then you should start off making sure that you get things off to a good start. This is all about making sure that you have ticked all of the legal boxes for a new business or startup, so that it is safe, secure, and allowed to function as a business, in the eyes of the law. You can’t just start a cupcake stand from your home without the right kinds of things in place, for example. There are legal requirements, no matter how big or small the venture will be. There are financial regulations, some tax obligations, and laws around employment too.
Getting these things sorted, right from the start, will mean that companies can comply with their legal responsibilities, helping you to just focus on the growth of the business. Here are some of the things that you need to take into consideration.
Choose a business structure
One of the first legal requirements for a business is that you will need to decide on a business structure, and then get it registered as such. You will be able to have either a corporation or a LLC. There are different benefits, as well as disadvantages, for both, so it is a good idea to research each before deciding.
Choose and register a business name
When you have decided on the structure of your business, you need to register the business name. The name that you choose may be your name, or it may be a business name that shows to others exactly what your business is all about. You should also check that the name isn’t already taken, or it could land you with some legal problems. A business name can then be used for a web domain address, as well as be trademarked to keep the name and business idea secure.
Protect with insurance
Having business insurance helps to protect the business, as well as you as an individual. Some business structures can help to protect your business, but there can be some personal liability with other business structures. Having small business insurance is going to help to protect you, as well as any of your employees. Your business assets need to be protected too. It is also a must to check on the kind of insurance that your business needs, as there are some types of business insurance that you need to have, by law. This could be something like unemployment insurance or insurance for any disabled employees that you might have.
Licenses and permits
It is likely that there are some licenses and permits that are required for your business. There may be some specific licenses or permits to your industry, as well as for your business location. In fact, some states will have different requirements to others, so it is important to check exactly what will be required, as well as what the federal requirements are for licenses and permits for your business type.