Starting your own business isn’t easy. Not only do you need a plan that stands a good chance of working, but you might also need to find investors who believe in that plan. You’ll undoubtedly need to read and learn about all the laws associated with the industry and business in which you hope to join, and it’s a time-consuming process to say the least.
So what are the laws you most need to know about when starting a business? Here are the legal requirements every entrepreneur should know about!
- First, you’ll need a name. That much is obvious, but you’ll also need to register the name with state and local governments. Be careful, because this doesn’t provide any legal trademark protection for your brand–you’ll have to do that on your own when the time is right. If you don’t complete this step, then your legal name will be automatically used.
- Don’t forget to pay Uncle Sam! You’ll need to apply for an Employer Identification Number (or EIN) in order to identify your new business to the IRS. Individuals have social security numbers. Businesses have EINs.
- Research state and local tax regulations for your business. If you will have employees working under you, then this is even more crucial because you’ll be required to contribute to the state unemployment pool.
- Determine whether or not you need to be licensed or certified in order to perform any functions of the jobs or business you’re creating. If you know you need a state or local license, be sure to check to see whether or not that business is also regulated at the federal level. If it is, you’ll need to be certified there as well.
- Small businesses and corporate empires must abide by almost all the same laws. You’ll need to know all about the laws that regulate how you can advertise and market, or finance your new business. You’ll also need to know about laws that regulate intellectual property (or IP) and privacy in order to protect yourself and your business from those who might be interested in stealing some part in it, or otherwise taking advantage or your newfound success.
You may also be required to file reports or forms with agencies governing your industry, so make sure to perform the necessary checks now in order to avoid a headache later!