The Legal Processes of Starting Your Own Business
When commencing a startup venture, entrepreneurs should comply with all federal and state laws. There are varying laws that govern the registration of a business, such as tax laws and employment laws. To ensure that your venture is compliant with legal processes, the following are top legal processes an entrepreneur should consider when starting a business.
Structure of business
The structure of the business depends on the kind of ownership structure your new business will have. A limited liability company is one type of business structure that protects your liability, including your home and vehicles, from been attached to business assets in case of bankruptcy or suing of the company. On the other hand, a corporation is a legal entity separate from its owners. They offer the most outstanding level of personal protection.
Register your business name
Now that you have looked at the company’s structure, the law requires that you register your business name with the registrar of business or companies. You may be desirous of starting operations soon. Choosing the right business name, registering trademarks and domain names will get you started faster. Conduct a name search on your preferred choices to ensure that they are not registered yet before commencing operations.
Employer Identification Number
Now that we have registered a business name and secured our trademarks, we need to apply for a tax ID for the business. A tax ID enables you to pay taxes to the federal government for incomes generated. It is applicable in paying taxes on employees’ salaries and securing business permits necessary to set up a location.
Obtain permits
With a registered business and tax ID, you can get into lease contracts for premises to help your operations. As such, you require licenses to authorize the business operations you intend to conduct in the line of business. These licenses are available at the federal and state levels depending on the company you wish to commence. License fees payable depend on the location of your business.
Open a bank account
Establishing a bank account gives you the chance to start earning from your business. Once ready for sale, your products and services will attract customers who require bank account details for payment processing. A bank account enables you to process payments for raw materials, labor, and general business expenses.
