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If you are a budding entrepreneur set to take on the world by storm this year, you have likely already started preparing for the opening of your business. However, many startups forget to get all of the legal stuff sorted out before they go live, and this can be damaging to you as a business owner if you break any laws.
To save the hassle, get all of the legal elements sorted out first, and start the business after.
Make sure you are allowed to use your name
Coming up with the perfect name for your business can be one of the greatest challenges in the startup process. But what you may not have relished is that even when you have your name, you might not be able to use it. Take a look at the businesses currently registered with the Secretary of State and this will allow you to see if your name has been taken. If so, you will have to think up something else to avoid conflict.
Register a DBA
DBA (doing business as) is a requirement for your business if you ever perform business actions under a different name. It can be quite a complicated part of a business to understand which is why you are better off hiring an attorney such as AclockLaw.com to help you figure this out. This is a requirement if you try to conduct business under a different name. For example, your business could be called floors2go, but you may conduct business under the name floors2go.com. These variations need a DBA to be legal.
Form an LLC
And LLC or a corporation is essential if you want to protect your business assets from liabilities. They give you legal protection should anything ever happen and a lawsuit is filed against you.
Sort out your tax
Tax is a crucial legal step in running a business, and as you may have heard on the news, companies have gotten into trouble before over trying to evade taxes. To make sure that you and your business don’t face hefty penalties, you need to register for a tax code for your business. This will be a unique ID applied to your business and will mean that you are taxed the correct amount each year according to your earnings. You must make sure to never hold back your earnings as a company because if you are found out you could face a federal investigation.
Learn employee laws
Even if you haven’t employed anyone to work for you yet, you will need to start researching employee law in the US. As an employer, you have a level or duty and responsibility to provide a certain level of working condition for your employees. Spend some time talking to an employment lawyer to discuss employee rights, health and safety law and general issues you need to adhere to. When you do come to employ your first worker, you will be able to give them the best conditions for work you can.