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Basic legal requirements for starting a small business

Basic legal requirements for starting a small business

If you consider yourself a visionary entrepreneur, your future does not need guessing: you are definitely going to run a successful business. Of course, like everyone else, you will have to start small and work your way to the top, but as long as your mind does not lack originality and fresh ideas, you will not encounter difficulties. Even though you master the business management and development part, you also need to pay great attention to legal requirements and meet them before rushing to engage in certain projects. Your excitement of starting up a business might be over the roof, but make sure that you keep that enthusiasm when you think and write the business plan, establish the business structure, decide on the right name and comply with the government requirements and regulations. Nobody approaches this process with a relaxed attitude. Instead, you have to be very careful and make sure that you are fully aware of all the legal requirements so you do not become the owner of a lawless company.

Legal steps for starting up a business

When starting a business, you have to keep in mind the following legal steps: receiving legal permission for using a specific name, forming a limited liability company (LLC) or incorporating your business, applying for Singapore business registration, getting a federal tax identification number, obtaining the required license and permits, filing for trademark protection and building business credit. The reality is that you cannot do anything for ensuring the success of your business until you choose a suitable name. With all the already existing companies on the market, it might become a challenging mission to find an original and unique name, but you have to if you want to differentiate yourself from your future competitors and if you do not want to infringe on the rights of another business. Taking into account that all businesses must register their names with the secretary of state, you can simply explore the current names and avoid them. You can also discover if the chosen name appears in all the 50 states.

Business structure and employee rights

Choosing to form an LLC is the wisest decision for protecting your personal assets. However, you do need to analyze each business structure along with its benefits and drawback in order to choose the most beneficial option for your type of business. Other options refer to sole proprietorship, partnership and corporation. Obtaining a Federal Tax Identification Number, also known as Employer Identification Number, is very important because it transforms your business into a separate legal entity and distinguishes it from its members. In order to obtain it, you have to contact the IRS, which will then be able to stay up to date with your business financial transactions. Once you hire one or more employees, you have to become familiar with employee laws. As an employer, you have certain obligations that you must understand and observe, such as wage requirements, unemployment insurance, compensation rules and anti-discrimination laws.