When you start a new small business venture, it is important to understand the legal requirements to do so. There are many different legal obligations that small businesses are going to have, especially as they are just getting started. It is important that small business owners know and understand what these legal requirements look like so that they can comply. Propel Your Accounting is here to share some of the legal requirements that small business owners need to remember as they get their business up and running.
Make Sure You Recognize & Follow These Legal Requirements
Follow these steps to ensure you are flowing the legal requirements and obligations for starting a new small business:
– Choose a Business Structure: The first step in getting your new small business up and running is to choose the business structure. Most businesses choose from four different choices including a sole proprietorship, partnership, LLC, and a C corporation.
– Register Your Business Name: When you get the business structure nailed down, you will need to register your business name with the state and federal government. Make sure you aren’t choosing a name that has already been chosen.
– Apply for a Federal Tax ID Number: You will also need to file for your federal tax identification number which is also known as an Employer Identification Number (EIN). You can apply for this important number on the IRS website.
– Obtain Permits & Licensing: Next, you will need to apply for permits on both a state and federal level. There might be specific licenses that you also need to have depending on what type of business you are running. Make sure you have all the permits and licensing taken care of.
– Business Insurance: It is required that you have business insurance that offers as a protection to you as well as those that you do business with. Don’t ever underestimate the safety net of business insurance in protecting what you have worked so hard for.
– Comply with Labor Laws: When you have employees, make sure that you are complying with labor laws. These are in place to keep employees’ rights and safety in check.
– Open a Bank Account: It is time to open a business bank account as well. You will want to keep your finances separate from your personal accounts now that you are officially getting started. This can be helpful when you are collecting payments from your customers and what not.
Bookkeeping, Accounting, Business Consulting & HR / Admin Services in the United States of America
If you are getting ready to start a new small business, you can turn to Propel Your Accounting to help ensure you are meeting all your legal requirements to do so. We want our clients to be able to find success in their small businesses. We work hand in hand with you to ensure you are complying with all the legal requirements that you have as a company. Call us today!
