Legal Considerations To Remember When Starting A Business
In the United States alone, there are more than 28 million small businesses and yet these already makes up 99.7% of all U.S. business establishments. So if you are currently having second-thoughts about whether you’re doing it right or not, it is best to know that most of the businesses in America start out on a small scale. However, only two-thirds of these business establishments last for at least 2 years.
This only means that when you plan to establish your own business, planning deliberately is important to guarantee its success. Here are the legal considerations you should take mental note of when starting your own business:
- Picking an original and legal business name
When establishing your own business, picking a distinct business name is vital to the whole process as it serves as your distinct identity in a sea of businesses that offer similar goods and services. Your business name should be easy to pronounce, direct, and classic. Opting for a fad or trend-based business name can be irrelevant with the passing of time. It is also best if you make sure that it is original and unlike anything else for a better chance of memory retention.
- Getting a federal tax ID number
In order to have your business recognized as a legal identity, you will need to acquire a Federal Tax Identification Number, which is also known as an Employer Identification Number). The tax ID number is quite similar to your social security number, and will allow the IRS to keep track of your company’s transactions with your customers or clients, however, this will be exclusive only for companies. Therefore, if you are a sole-proprietor, you are not obligated to obtain a Tax ID number.
- Filing for a trademark
Filing for a trademark for your business will enable your customers or clients to easily find you, it also serves as an effective communication tool to relay your business’ reputation, products, and services. Aside from that, it allows your business to effectively use your name for Internet use such as for social media marketing. Though you are not required by law to register a trademark, registering your name for trademark will serve as a formal registration of your name and will protect it when it is used illegally anywhere else.
- Obtaining the necessary permits and licenses
Just like occupational licenses and driver’s licenses, these serve as your identity and credibility for a certain field, but this time, for your business. The necessary permits and licenses that you need for your business establishment are necessary in order to make sure that you are accountable for your own actions involving your operations.
- Orienting yourself about the Employment Law
The Employment Law has been implemented in order to guarantee a fair and safe working environment for your employees. Understanding this law is very crucial for you as an employer in order for you to be aware of the proper decorum that you should maintain in order to provide fair and just treatment among your workforce. Through this, you will also learn the proper steps to uphold in order for you to avoid being held by legal actions taken against you by your own employees.
When you plan to start your own business, it is best if you consult a legal attorney regarding the proper procedure in order to guarantee that everything will go smoothly. The legal considerations might overwhelm you but a legal attorney will be able to simplify it for your own convenience.