Planning to start a small business? Before you do anything, there are a few things or important requirements you need to know about! Read this article and find out!
Did you know that small businesses that start on a financial foundation and on a legal firm, have a greater chance of achieving success? Even though defining the business products and services you are going to sell online, there are other things that have to be taken into consideration as well. All small business entrepreneurs should focus on making sure all essential basic business startup demands are satisfied!
Here is what we are talking about:
- Legal Structure – After choosing a business name and a specific niche, you should determine the type of legal structure which is most suited to your business size, potential liability, and preferred tax structure. The sole proprietorship companies are easy to determine and they need little paperwork, while other businesses require higher responsibilities. Partnership is a business established by more than one agreement and should be based on an agreement to avoid further complications. And then there is a corporation which any small business can form to minimize personal liability, have access to additional financing options, and define ownership.
- Permits and Licenses – The business permits and licenses may vary by industry, location, and work to be executed. Small businesses probably will need a business license that is issued by a state, county or city. Local licensing can include pollution control permits, a fire permit for business working, permits for a physical sign, health department permits, and etc. Small businesses also need a tax permit.
- Insurance – Please keep in mind that basic insurance requirements may vary by business activity and by state. Small businesses that have employees must have employee compensation insurance, pay necessary unemployment insurance taxes, and maintain disability insurance. Also, small businesses need property insurance and professional or product liability insurance.
- Financial Requirements – Small business must have enough capital for operating expenses and startup capital until the company starts generating a profit. The business will also need an accounting system or a financial management system to record all transactions.
That’s it. This is everything you need to know from a legal point of view before you start a small business! Keep these things in mind, and you are ready to start your own business!
— Andrew Liggett (@seatosky_law) 16 de enero de 2017
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