If you are thinking about starting a small business, it is very important to see a lawyer. What follows are some basic concerns that you should think about as far as legal matters, but it is not intended as legal advice.
Now that I got so simple disclaimer out of the way, it is important for you to think about the legalities when you start any small business. The first and perhaps most important thing you should think about whether you should form a legal entity to use to conduct business. There are a few disadvantages to having a company or LLC to run the business and there are many benefits.
The main advantage of running a business in a legal entity other than his own name to the shield you from liability. Properly defined, it is very difficult for creditors and other potential litigants to sue you personally. There are literally millions of things that could happen that could cause the warranty from your activities, it is smart to have some protection from the beginning.
There are also great benefits of having a company or other legal entity tax party. These tax benefits are usually significant enough that they far outweigh the cost of hiring a lawyer or even figuring out how to form a corporation or LLC ones.
Another very important thing you must do is to get a bank account, and credit or debit card for your business. You do not want to mix the money from your business with personal spending money. Using the same account results in massive confusion when you try to figure out the costs and profits and losses, but it can also lead to people piercing through your company in a lawsuit and get their own private accounts.
Virtually every business needs to have some kind of insurance policy. If you hire any employees at all, you have to get insurance compensation Workman – it’s the law. Many contractors try to get around this by saying that their employees are “independent contractors” and as such do not require compensation coverage workman. If you are thinking of going that route, talk to an attorney or insurance agent about what your employees are going to be doing and how you are monitoring them. Often times, the “independent contractor” defense only works until someone get injured on the job. When that happens, they file a claim, you may be responsible for the full cost of injury as well as you could possibly face fines for not having insurance.
Get a good accountant or good accounting software so that you can keep track of any transaction that you make in your business. Income is often difficult thing to track the spending. For each expense, it is usually canceled check or debit card file that can make it fairly easy to correctly classify expenses if you do not keep up with your books. Revenue, however, can really mess up if you do not know who it was and it was. Characteristics of revenue will be very important when you need to know whether it was for a product or service and if there were any discounts involved in the business. Do not be sloppy with your books or you will spend tons of time trying to reconstruct what should have been done a long time ago.
You should also be sure that the company will not violate local laws. If you are running your business out of your home, there may be local ordinances governing what types of businesses can be run out of the home. In most cities that have such ordinances, you can usually just apply for a license and everything will be fine. If your business is outside of your home, make sure it will meet all zoning ordinances.
These are just some of the most important basic thing for a small business legal status. If you have serious plans to build a substantial business, it is highly recommended that you consult with an attorney to come up with a complete checklist that is unique to your situation.