Legal requirements needed to start a business

Forum: Business Planning
May 20, 2009 at 9:56 PM
Posted by Cindy_Lynn

Legal requirements needed to start a business


Comments

Is that a question?

 

You can start with a DBA (aka doing business as, or fictitious name). The easiest way is to file online. But you can go to county records and fill out ppwk and then post ad in newspaper. Then apply for EIN (tax id) to open bank accounts and such. In essence, you are now sole proprietor, which means you are liable for all debts and liability for the company since the entity is actually YOU.

 

Or you can opt for some liability padding via Limited Liability Company, which offers a few tax benefits, and although you may still end up filing a schedule C (on your own 1040) at the end of the year, (as a sole proprietor even though you own LLC), but at least if your company is in business law suit your personal assets won't be touched, and if you are sued civilly your business won't be touched- Assuming that you are conducting business lawfully and within the confines of your LLC business agreement. Another added benefit is that IRS now allows single owner/operator LLC (by the way if it is husband / wife filing joint, you are not partners- you are sole...just a side note.)

 

I am in the process of filing for LLC, I had some questions as well, so if you want to track responses to that thread it is here...  http://www.sagespark.com/forum/question-all-llc-owners-out-there-or-anyone-wishing-comment

 

Hope this helps.

 

Craig 

Sep 7, 2009

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Apr 21, 2010

Cindy,

There can be a variety of legal requirements to start a business, depending on the business you are starting!  Do you need help forming a corporate entity?  You need to consider what sort of entity you want to form, if any, or if you want to proceed as a sole proprietorship.  There are legal reasons to form a company, for example, an LLC, and tax reasons as well.  

 

If you are starting an Internet business, you will also need legal documents for your website, depending on the business and content of your site.  

 

If you will be emailing marketing to prospective customers, you will also need to make sure your emails are CAN-SPAM compliant.

 

If you are creating advertising and marketing materials, you want to make sure that they are not misleading.

 

Are you going to be using a trademark/logo for your new business?  Then you need to make sure that you aren't using one that is already in use by a third party.  

 

These are just a few examples of the items you need to consider when starting a business.  Feel free to contact me, Julia Mattis, if you have any other questions.  www.mattislegal.com.

 

Oct 29, 2009

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Apr 21, 2010

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