Every year there are plenty of budding entrepreneurs looking to develop and grow a new business. Working for yourself has got to be the dream, right? Start-ups and new businesses often have a lot of enthusiasm and energy to get things going. But quite often, they haven’t thought about all of the legalities that it would involve. In an excitement to get the products launched or the business up and running, the less exciting but majorly important side of setting up a business can get left behind. So here is a bit of a lowdown on some of the administrative tasks that you need to check that you’re doing for our startup. You need to make sure that you steer clear of anything that could get you into trouble.
Is Your Name Legal?
All businesses need to have a name. But can you legally use the name that you have thought of? A website like sec.gov is going to be a good way of checking what the name is and if you can legally be using it. Even if your surname is McDonald, it will be highly unlikely that you’ll be able to legally call a restaurant after your surname. Once you’ve found the name that you want to use, it might be a good idea to look into getting a copyright to trademark on the name too. Just something to think about so no one can take it later on.
Have You Registered Your Business?
If you have not yet registered your business as a company, it is time to do so before doing anything else. Then you can trade under that business name and get things going. As well as simply registering your business, you might look to form an LLC (legal liability company). As explained on the site howtostartanllc.org, an LLC is essential for business owners that want to protect their personal assets. If you want to keep your home and bank savings separate from your business, then it needs to be done.
Do You Have The Right Permits and Licenses?
Depending on what kind of business you have and where it is located, you might need some permits and licenses. These can vary from state to state and country to country, so it is worth taking the time to check out what you need specifically. They might be sales tax license, land use permits or simply a food preparation permit. But you don’t want to start business without them.
Have You Opened a Bank Account?
If you want to borrow money for the business, then opening it from a business account is the best way to go about it. Otherwise, you’ll be borrowing from a personal account, where your existing commitment such as a mortgage and car loan will be taken into account. So it really makes a difference to have a separate bank account for all things to do with the business.
Do You Have An Address?
Regardless if your business is done from home, online, or has a physical address. An business address that is separate from your home is important. A simple way to get an ‘address’ without buying land is simply getting a P.O. box. This way you can differentiate personal and business.
There you have it! No matter how busy things might be in the early days, taking time to sort out the legal side of your business will make things run much more smoothly.