STARTING A NEW BUSINESS can be very hectic as it takes a lot to ensure that the new business will prosper.  It is vital to have a strong foundation so that your business will grow from day one. Aside from the typical startup tasks, there are a number of legal issues that you need to address so that you don’t end up on the authorities’ radar.  Once you have settled all the legal aspects of startup, you will have the freedom to operate and grow your business effectively.

The first thing you need to know is the type of business you want to start.  A sole proprietorship is the most common type of business that most people will opt for, but others do exist.  The government will recognize your business as a sole proprietorship once you submit your individual income tax and other documents of incorporation.  As the owner of the business, you will have individual control over the business and will be lawfully viewed as the sole manager of the business.  All the business assets and profits will be yours and you will be solely liable for all the legal actions in your business.  It’s good to know the documents to have so that your business is recognized as legal.

Once you have decided on the type of business to start, the next step is to register your business’ name.  It is good to do intensive research so that you get a unique name that will complement your business.  You can check online with the government to know if there is any other business in your industry that has the same name as yours.  It is smart to check on your government directory to be sure of the business registration requirements as some industries differ.

The next step is to license your business.  The kind of license you will get depends on the type of business you are starting.  Licensing will be done by your local government.  Federal licensing is done specifically for businesses that are controlled like the business of making alcohol, tobacco or firearms.  Many authorities will require a general license; however, other kinds of licenses may be required if you are engaged in a particular business.  It is good to consult your local government clerk to know the exact type of license you need.  There are even cases where you will be required to have an occupational license.

Another basic legal step is to report your income taxes.  It’s good to be responsible and pay income taxes on your business.  The amount of tax you will pay will depend on the net profits and won’t come anywhere near the financial and judicial world of hurt that will come down on you if you’re caught not being honest about your business’ income.