Getting your own business off the ground is definitely a challenging and exciting activity. There can be nothing more satisfying than seeing your germ of an idea growing into a large and profitable business organisation. But before you can take it to that level, you have to ensure that you get the basics right. You must have a business plan in place, get the required finance and hire key people to run your company. However, what many business owners often neglect is following the statutory rules, so necessary before the first customer walks in. Not doing so can lead your company to unwarranted litigation later, resulting in fines and suspension of business if found guilty.
It is therefore necessary to get all the regulatory permits and licences before starting off. Most businesses falter at this step, not because they are wilful defaulters but because they are not aware of what is needed. Hence, it is always advisable to hire the services of business lawyers to get you through this first and crucial step.
Here is a check list of legal requirements that you should tick off before embarking on your business venture.
Registration of Business Name
You have to register the name of your business first as “Doing Business As” (DBA) or “Fictitious Business Name” (FBN). The latter is the name your company will be operating under as distinct from the real and legal name of your business. FBN is temporary in nature and is usually valid for 5 years.
Registration of business name will not provide you with any trademark protection but you can use the name on your brands. However, if you do not register a DBA name, the business will automatically be registered in your name, that is, John Smith for example. On the other hand, if you register as “John Smith Consulting”, it has to be registered as a DBA business name with the State.
Federal and State Taxes
Any business that is a sole proprietorship or a corporation and has employees working for it needs an Employer Identification Number (EIN) from the tax authorities. This is like a social security number for your business and will be required at every step of operations, from filing taxes to opening bank accounts to applying for business licences. If you are operating as a sole proprietorship, you are not required by law to obtain an EIN even though it makes sense to bifurcate your liability into business and personal segments through an EIN. Your Federal taxes and the returns you file will be determined by your business structure.
Apart from Federal taxes, you will also be required to pay certain State and local taxes. These vary from State to State and hence you should consult lawyers who are well conversant with the business laws of the State and are based there. For instance, if you are starting your venture in the State of Victoria, Australia, you will do well to contact PB Lawyers. The firm is based in Melbourne and has a reputation in this field. They will be able to take you through the maze of State and Local tax structures so that you do not have to face any potential tax hurdles later.
Business Licences and Permits
Just like registering for Federal and State taxes, you will also have to get the necessary business licences and permits both at the Federal and State levels. This will be decided by the type of industry you intend to start and where is located. Federal licences are usually needed in cases where the business activity has to be supervised and regulated by a Federal regulating agency whereas State and Local permits and licences depend on the location.
For any business, retail or setting up industries, you will have to buy or lease premises. This should be in accordance with the laws prevailing in the State. Your conveyancing solicitor will be able to guide you in this regard and draw up agreements and contracts that are appropriate to your business. Even if you work from home, there might be a State or local limit to the number of people that you can employ. Only an experienced solicitor firm well versed in the business laws of the State can optimally guide you. In continuation of the previous example, if you are operating in the State of Victoria, Australia, you can visit https://pblawyers.com.au/property-conveyancing-melbourne.php for more information.
There is a range of other legal requirements with the ones mentioned here being the key ones. Always take professional help first and leave nothing to chance.