A “doing business as” (DBA) is often referred to as a “trade name” or “assumed name”. Typically, you will need to register a DBA if your company uses a name other than the official legal name. Sole proprietorships and partnerships do not need a DTA if they are doing business on behalf of the owners. LLCs and companies do not need a DBA if they use the official company name. It is possible for several companies in the same state to use the same DBA name. Depending on your state and the nature of your business, you may need to file your DBA with the state or location. A federal tax identification number, also known as an employer identification number (EIN), is a nine-digit number for businesses. Almost all businesses must obtain an EIN, although sole proprietors and single-member LLCs without employees can use the owner`s Social Security number instead. You can get an EIN for free on the IRS website, which provides specific and detailed information about the requirements on their EIN application page.
Many types of businesses require permits and licenses to operate. For example, if you sell groceries or alcohol, you`ll likely need state and local licenses before you can do business. Individual employees may also need their own licenses and permits for certain types of work. These are usually issued by your city, state, or city, so browse their websites or contact an expert for information on what`s needed. A sole proprietorship does not form a stand-alone business entity, which means that there is no legal difference between the assets, liabilities and other liabilities of the business and those of the owner. This creates a risky situation for the owners, as they are responsible for the legal or financial failures of the business. You can`t take partners and remain a sole proprietorship, and your ability to get a loan for your business depends on your personal loan. Sole proprietors report business income and expenses on their personal income tax returns and pay income and self-employed taxes on their profits. Some company founders use sole proprietorships to test a business idea before committing to a more formal structure and paying the higher fees associated with those structures. You can register the entity name to protect the company name at the state level.
You claim the name as your own and no other corporation may be incorporated under that name. Another way to register a business name is to protect the name. A trademark prohibits other industry players from using the brand name nationally. In most states, business owners (especially those with more than five employees) are required by law to insure their employees in a variety of ways. Providing workers` compensation insurance to those who are injured on the job and unable to fend for themselves is mandatory in most of the United States, for example. Many amateur entrepreneurs try to reduce the costs associated with running a business by lowering their insurance rates, but understand that the savings on workers` compensation could seriously backfire and cost you dearly. However, there are circumstances in which your tax situation may differ. For example, the way your business is structured from a tax perspective can affect the taxes you have to pay. Some companies with employees are responsible for contributing to unemployment, which requires the owner to receive additional tax identification numbers. In addition, it could also be a determining factor in whether or not your business has made a significant profit in the past year. For more information about tax requirements, visit the IRS website. Every entrepreneur is legally required to pay taxes.
These include income tax, taxes for the self-employed and, for some businesses, sales tax. It is advisable to hire an accountant or accountant to ensure that you comply with all tax laws. Accounting software can also help you determine when to file a tax return and which forms to fill out. Always remember that lawyers who cannot answer your questions satisfactorily will not be able to seriously defend your business. Invest a lot of time, energy, and money to find the right legal experts to protect your business, and your new business will be up and running in no time. Ideally, you should hire an experienced business lawyer for employment law, contract law, securities law, and intellectual property law. You could potentially hire a “general counsel” for your employees, but it`s common for work to be split between different firms and lawyers. The cost is worth avoiding legal problems.
Smart entrepreneurs would do well to look at a comparison of workers` compensation requirements from state to state and should not delegate this responsibility to someone else. Some small businesses may be exempt, but as you start growing, keep in mind that you`ll soon need to think about workers` compensation. Briggs Law has been protecting and advising small business owners for over 20 years. Our goal is to help you navigate through this exciting and nerve-wracking time. We have handled a variety of business issues and even offer several tangential services because we know that small businesses are often family businesses. You can trust us to ensure that your business complies with all legal obligations and is protected from any obstacles that may come your way. Be sure, you`re not sorry. Collecting this information informs your process. Each individual has different needs for their business, and legal entities are not a one-size-fits-all solution. While some people feel that their work carries little risk of lawsuits and opt for a simple sole proprietorship, others may want to sign a company in order to be positioned for growth. Company or employee handbooks are a great way to convey your company`s legal values and boundaries.
It can also help determine what is and isn`t appropriate behavior internally and externally. Ask your legal counsel to thoroughly review this or even help you draft it, and then bring the company together to review the material. Once you`ve sorted out all the legal headaches, make sure everyone in the company knows and understands your company`s legal obligations as well as you do – as a business owner, you could be held accountable for everything your employees do while you represent your organization. If your business works with multiple business owners, it`s important to make sure everyone knows and understands their rights and obligations regarding the business. How this happens depends on the structure of your business. If you are forming a corporation, you need a shareholders` agreement and proper articles of association. If you are forming an LLC, you will need the articles of association and an LLC operating agreement. You will also need appointed legal counsel to ensure that agreements and articles of association are sound. A privacy policy is a legal statement that describes how a company handles the personal information it collects about customers or employees. Personal data may include name, order history, phone number, address, and browsing habits. However, the collection of information is voluntary and the visitor has the right not to participate. Here`s what business owners need to do to avoid costly mistakes down the line.
At your county clerk`s office, you will need to complete the corporate name submission forms. You must provide your full legal name, address, DBA, business address, full legal names of registered owners, business identification number, and business type. After that, you must authenticate the form and submit the required documents within 40 days of starting the business. It is possible to operate a business without being legally incorporated and to operate simply as a sole proprietorship if one person owns the business, or a partnership if several people do so. In this case, your assets and liabilities are effectively mixed with the business, which can be risky, especially if you have employees or are doing something that may result in liability. Starting a business involves brainstorming, planning and making sure you meet all necessary legal obligations. These requirements not only ensure that businesses comply with the law, but also protect small business owners and their consumers. The requirements for opening an account vary from bank to bank and depend on the type of business. However, the most common documents you need to submit include a Social Security A number, business license, incorporation documents, and ownership agreements. To make sure you`ve covered all of your legal responsibilities as a new business, it`s a good idea to seek professional advice.
Consider sitting separately with a lawyer and accountant to make sure your business is covered from a legal and financial perspective before you start the business. A state or local license or permit may also be required in various categories of businesses, all of which depend on state and local legislation. For example, if you sell goods in a state where sales tax is charged, you`ll need a seller`s license. Most places require businesses to obtain a general business license or permit. You may have additional state or local licensing requirements that apply to your specific industry. City or county licensing agencies can be good places to find out what special permits or licenses might be needed. Once a company`s mission and strategy are clear, an important next step is to decide on the company`s legal structure. The decision you make can affect everything from how you run the business to the responsibilities you face, to how you pay your taxes.
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