Starting a business is potentially very overwhelming. Maneuvering through the legalities of starting that business can be crippling to some first time business owners. Getting advice from experts, who have navigated through this successfully is the best step you can take. Here are a few entrepreneur tips and legal tips to get you started.
You probably already have an idea of what your product line or services will look like. But, you’ll definitely want to do some market research for your area to ensure demand is present. Once you have your product/service and your target market chosen, you’ll need to take these steps to ensure your business is legally set up for success.
- Determine your Business Structure. Your business structure creates a legal footprint for your business which then also determines your tax liabilities. The most common business structure options are:
- Sole Proprietorship
- LLC – Limited Liability Corporation
- Corporation – S Corp
- Depending on your products or services, you most certainly need to register your business at federal, state and local levels. Not registering your new business could cause you to lose legal and tax benefits as well as miss out on personal liability protection.
- Get your Federal ID number from the IRS. Some states will also require a State Tax ID.
- Apply for any licenses and permits that your state, or local government will require based on your industry or products.
Taking the proper legal actions to set up your business will save you money and a ton of headaches during your first year of business.