Legal Issues to consider before starting up a business
Ever wonder why you need to consider the law in starting your own business? The answers is very simple, a business establishment shall comply with the laws of the country where they wish to operate. Failure to comply with laws of the land shall decline the issuance of business permit. In order to legally start the business, consider the following factors you need to settle first before going any further:
1. Business Name
You must first try to create a unique name for your business. You need to make sure that the name you’re going to use is not yet registered in the records of the Secretary of the State. If you’re decided what business name you should use, you can reserve the name with the Secretary of State for 120 days while you are preparing for the articles of incorporation, articles of organization, or a partnership agreement.
2. Business Structure
You need to decide what business structure is best for your business. It can be sole proprietorship, partnership, limited partnership, corporation, S-corporation, or Limited Liability Company. This is for the purposed of determining the extent of the liability of your business. This can also help you to know the best tax structure for your business.
3. Business License
Basically, you need to obtain a business license and tax registration for your business. However, there are other required licenses which may depend on the nature of your business. You also need to consider the requirements for establishing a business as prescribed under your specific state laws.
4. Non-Disclosure Agreement
Before entering into any contracts with your suppliers and the like, make sure that you have a non-disclosure agreement and have them signed the agreement. This is to protect the confidentiality of your business. I bet you don’t want to end up being a loser knowing that your supplier informed your competitor on the types and number of supplies you have ordered from them.
Local zoning ordinances and regulations are important considerations when choosing your business location. Zoning laws impact several critical business decisions such as purchasing property or making improvements to your existing property, so it is important to understand the laws before you commit to anything. You can find out how property is zoned by contacting your local planning agency.
These factors shall be followed accordingly, however, keep in mind that there are other factors to consider depending on the state where you want your business to be located. Failure to comply shall affect the legality of your business.