Starting and running a small business can be a daunting task. There are many things to think about, from setting up the proper legal structure to marketing your product or service. And that’s just the beginning. Here are seven legal tips to help you get started on the right foot:
1. Select the Right Business Structure
The type of business you operate will determine which legal formalities you need to follow and which taxes you’ll need to pay. Be sure to select the business structure that makes the most sense for your particular business. The most common business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations.
2. Get the Proper Licenses and Permits
Depending on the type of business you operate, you may need to obtain specific licenses and permits to do business legally. Check with your local chamber of commerce or city hall to determine what’s required. They can usually point you in the right direction. Failure to get the proper licenses and permits can cause costly fines or, worse, force you to shut down your business.
3. Protect Your Business Name
You’ve spent a lot of time coming up with the perfect name for your business. Be sure to consult with an IP law firm and protect it by registering it as a trademark. That way, no one else can use it without your permission. This is a simple and relatively inexpensive process that can save you a lot of headaches down the road.
4. Understand Employment Laws
If you plan on hiring employees, there are several employment laws you need to be aware of, such as those about wages and hours, discrimination, and so on. Familiarize yourself with these laws to avoid any potential problems. For example, if you’re found to violate the Fair Labor Standards Act, you could be subject to hefty fines.
5. Comply With Environmental Regulations
Depending on the type of business you operate, you may be subject to specific environmental regulations. These can range from air pollution controls to hazardous waste disposal requirements. Be sure to comply with all applicable statutes to avoid any penalties.
6. Handle Your Finances Properly
Properly managing your finances is critical to the success of any business. Keep accurate records of your income and expenses, and set aside money for taxes. You may also consider hiring an accountant to help you with your financial planning.
An S corporation is an often misunderstood element of business. An S corporation is not a business entity but a tax classification for small businesses which was created by the IRS. They are very popular because they help entrepreneurs avoid double taxation. For more information, consider this resource about how to start an S corporation in New York.
7. Have Adequate Insurance
No one likes to think about the possibility of a lawsuit, but it’s always a possibility. Be sure to have adequate insurance coverage to protect your business in the event of any legal problems. Look for a policy that covers both property damage and liability.
These simple tips can help you avoid many common legal pitfalls small businesses face. Of course, this is just a general overview, and you should always consult with an attorney to get specific advice about your particular situation. If you have a conviction affecting your business, you need the best criminal appeals attorney in Pittsburgh to help you resolve it quickly. Contact us today to schedule a consultation.
