Legal Steps Involved in Starting a Business Entity
Starting a Business
Starting up a business entity might be something you do before you actually start offering a product or service, or it might be a move you make after you’ve already been doing that.
In either case, it has significant legal advantages that protect you individually.
It helps to know the legal steps involved in starting a business entity.
Choose Your Tax Status
Most of the time, you’ll either choose an LLC or a corporation for your legal status.
Both offer significant levels of protection for you personally in terms of liability, but the actual internal ownership structure of your business might vary based on whether or not you have partners involved or not.
Register a Business Name
This usually happens at the state level. You typically can’t have the same name as any other business in your state, although you might wind up with a similar name to businesses in other states.
Registering for Tax ID Numbers
You’re more than likely going to need a tax ID number at the federal level.
Whether or not you need one at the state level will be determined by what state you are in at the time.
Get Licenses and Permits
These can happen at the state and municipal levels.
Depending on where you are and what kind of business you do, there might be quite a few of them to go through.
It’s essential that you have corporate lawyers on your side to navigate all this and draw up the appropriate documents, whether it’s the attorneys of Boynton Waldron Doleac Woodman & Scott P.A. or another firm in your area.
Get Insurance
Business insurance has to include liability insurance and likely other forms of coverage, too.
Just like most states require certain vehicle insurance for motorists to legally drive, most businesses also have minimum requirements they must meet in order to operate themselves at any time.
Category: Law
