5 Legal Requirements When Starting a Business.
Are you thinking about starting a business? If yes, then you might want to consider these five legal requirements before opening a business. This article provides information on five legal requirements when starting a new business.
Get a Business License.
In most states, the first step in establishing your business is getting a license. The state that you are located in will determine if you need an occupational or general business license. After obtaining a license, it may be necessary for you to register with other states to get licenses and permits.
Register Your Business Name.
Once you have obtained your initial business license, you must register your business name with government agencies. Registration ensures that no one else owns your business name, so make sure that your business name has not been registered by someone else.
File Articles of Incorporation.
Most small businesses start as a sole proprietorship, which means that it is just the owner who files articles of incorporation. There are some advantages and disadvantages to this form of organization. The main advantage is that it is very inexpensive and easy. However, it also limits liability protection to the individual owners
Get A Tax Clearance.
Many States require that you obtain tax clearance from the IRS before operating a business. Make sure that you are aware of any local laws regarding taxes. For example, many cities have a franchise fee and income tax on businesses. You must know what type of tax clearance you must have.
While not required by law, insurance protects your assets against theft, fire, accidents and more. Some types of business insurance include general liability insurance, auto insurance, workers compensation insurance, crop insurance, commercial property insurance and more. Insurance can cost anywhere from $50-$150 per month depending upon the amount of risk involved.
In conclusion, the five legal requirements discussed above are critical steps in starting your own business. However, there are many additional steps that you should take once you open your business. Consider consulting an attorney experienced in setting up new businesses for advice and guidance. Also consider checking online casinos.