The 10 Key Legal Documents for Your Business
Whether your business is large or small, a general partnership, a limited company, or a corporation, having the right legal documents in place when you start can be a huge advantage. The right legal documents can help you avoid many of the problems that derail new businesses before they get a foothold on the market. Nov 15, · Legal Documents for Small Business #1: Business License You need a driver’s license to operate a car. So it only makes sense that you would need a business license to operate a business. If your company is subject to permit or license requirements, you absolutely need to have them in place before you start doing funslovestory.comted Reading Time: 9 mins.
Use this checklist to learn about which business licenses and permits you may need. Many people think when you register a business, you're all set and can begin selling goods or providing services immediately.
But you also need to know which business licenses and business permits your new startup might require. Virtually all businesses will need a license of some sort, and many will need to apply for a number of different licenses and permits. The types of licenses and permits your business requires will depend, among on where you live and the type of industry you're in.
Not all of these licenses and permits will be required for your business You will need to do further research into which are applicable to your particular business. Still, here is a list of many common compliance documents:. This checklist is not exhaustive, and you will need to do the proper research on the licenses and permits which apply to your business. You will what to eat in order to get pregnant links there to the various what legal documents do i need to start a business business licence office websites, which should set out the state's license and permit requirements and provide you with information on how to get a business license.
Contents 4 min read. Belle Wong, J. Connect … Read more. Starting a Business. As a business owner, you have many options for paying yourself, but each comes with tax implications. Each business structure has its advantages and disadvantages. Find out what they are. Don't let your enthusiasm prevent you from taking the time to plan your business strategy and protect yourself legally or financially. Your choice will likely come down to cost and the level of liability protection you need.
If an LLC, or Limited Liability Company, seems like the ideal vehicle for your side business, you may be wondering if you can form an LLC while employed at another job. Don't confuse S corporations with an LLC. They refer to two different things. Starting an online business requires the same diligence as starting a brick-and-mortar business, plus some unique steps.
Forming certain business entities, filing an assumed name, or registering a trademark can afford you business name protection. Properly licensing your business will ensure you comply with all state, county, and local laws. Find out how to get a business license for your new business. Starting Your LLC. Still, here is a list of many common compliance documents: General business license. Businesses generally require a general business license in order to operate a business in the city or county in which they are located.
If you'll be running your business under a fictitious business name also known as a DBA nameyour state may require you to register your business name. Federal and state tax identification number. Most businesses will have to apply for a federal EIN, or employer identification number, also known as a tax identification number. Your state or local government might also require you to obtain a state tax identification number as well. Sales tax permit. If your business sells goods, whether online or offline, and your state requires you to collect sales tax, you may be required to obtain a business permit usually known as a sales tax permit or a seller's permit.
Zoning permit. Local zoning regulations may regulate where certain types of businesses can and cannot operate. These regulations apply not just to businesses such as manufacturers and restaurants. They can also have an impact on the home business owner. You may have to apply for a variance or a conditional-use permit if the area in which you wish to operate your business is not zoned for your type of business. Home occupation permit. A home occupation permit applies to home-based businesses.
If what is software testing tools pdf plan on operating your business from within your home, check with your city or county to see if a home occupation permit will be required. Specific types of businesses or businesses in particular industries may require special professional or occupational licenses.
The types of businesses or industries will vary from state to state. For example, certain states may require child care businesses to obtain a special how to make your furby a popstar. Professions such as lawyers and accountants are also often regulated and may require special professional licenses.
Health permits. Certain businesses such as those which involve the preparation and handling of food may require health permits. Fire department permits. Businesses which use flammable materials, are open to the public or involve a number of people assembling in one location may require a permit or an inspection by your local fire department. Environmental permits. Many state and local governments require certain businesses to obtain special pollution control permits.
For example, if in the course of your business you'll be engaged in an activity which results in the discharge of an environmental contaminant into the air or the water, you may have to obtain a special permit. Sign permit. Some local authorities have regulations which require that businesses obtain a permit before putting up a sign.
The regulations may also stipulate certain requirements such as the size of the sign and where the sign may be located. Building or construction permit. If you will be making any changes, particularly structural changes, to the place in which you will be operating your business, you may need a building or construction permit from your local authorities. Special state licenses. Many states require certain businesses, such as restaurants and establishments which serve alcohol, to obtain special licenses.
In many cases these licenses serve to show that the business in question has met specific state-regulated standards. Special federal licenses and permits. A federal license or permit may be required if your business is involved in an activity which is regulated by a federal agency.
Examples include the sale or manufacture of alcohol or firearms, how the grinch stole christmas film fishing and wildlife-related activities such as the import or export of wildlife. Here is a brief list of business activities which may require such federal licenses and permits. Get help starting your business. Learn More. About the Author Belle Wong, J.
Related Topics. You may also like. Starting a Business How to store water plants over the winter to Pay Yourself in an LLC As a business owner, you have many options for paying yourself, but each comes with tax implications. Starting a Business LLC vs. Sole Proprietorship Each business structure has its advantages and disadvantages.
Starting a Business 10 Mistakes New Business Owners Make Don't let your enthusiasm prevent you from taking the time to plan your business strategy and protect yourself legally or financially. Starting a Business S Corp vs. Starting a Business How to Start an Online Business in 8 Steps Starting an online business requires the same diligence as starting a brick-and-mortar business, plus some unique steps. Starting a Business 3 Ways to Register a Business Name Forming certain business entities, filing an assumed name, or registering a trademark can afford you business name protection.
Starting a Business How to Apply for a Business License Properly licensing your business will ensure you comply with all state, county, and local laws.
As previously stated, the form is simple, and requires the business’s name, address and the names of the members who will be participated in business ownership. Additionally, it will require the details of any agents the owners authorize to accept legal documents on the business’s funslovestory.comted Reading Time: 2 mins. Registering A Business Name When the business name is different from the owner’s full legal name (s), the "Assumed Name Act" requires sole proprietorships and general partnerships to register the business name with their county clerk's office. Find Your County Clerk.
What is the most common mistake startup founders make during early growth? Not establishing a strong legal structure off the bat. A common mistake startup founders make is failing to put the proper business structure in place. Setting up only a sole proprietorship can result in huge income tax bills and legal liabilities for which founders are personally responsible. By not filing with the Internal Revenue Service to form a distinct legal entity for their business, founders risk losing their personal savings and, in some extreme cases, their homes.
While all options have their pros and cons, for the most part, startups with multiple shareholders should form a C corporation. Businesses that want fewer tax obligations and want to avoid heavier fees during early growth should consider forming a limited liability company LLC. An IP assignment agreement could be the key legal document that determines whether your startup can attract the investments it needs in order to grow. Startup founders should have complete ownership of all IP assets in writing to avoid costly claims filed by patent trolls and companies trying to copy your business model, among others.
During the formation of a new company, a best practice is to assign all relevant intellectual property to the company. There are two types of IP assignment agreements to consider:. In order to ensure that a startup operates with as little complications as possible, founders should formulate strong bylaws off the bat. Bylaws should establish the internal rules of the company like how to settle disputes, select leadership and determine the rights and powers of shareholders.
Most importantly, bylaws should institute voting thresholds for approvals to certain actions by the corporation like electing new board members or entering into debt. To avoid any conflict among founding parties, all co-founders should sign a comprehensive operating agreement.
The agreement should define the relationship of the founders, provide the expectation that all work will belong to some entity in the future and outline a basic communication and conflict-resolution clause that can help prevent disputes.
Having a non-disclosure agreement NDA readily available is imperative before any business conversations take place between you and an outside party.
From the moment a prospective employee or investor walks through your door, you need to have an NDA agreement waiting for them to sign. An NDA should specify the following:. Startup CEOs and founders should draw up clear employment contracts and offer letters when hiring new employees.
They should clearly state the following. Finally, when a startup is ready to take on private investments, CEOs should create a shareholder agreement that determines the rights of shareholders and defines when they can exercise those rights. Related: Using an Independent Contractor? You Need a Rock-Solid Contract. Latest Video Start A Business. Legal Issues. Next Article link. Image credit: lawzam. Matthew Faustman. January 11, 5 min read.
Opinions expressed by Entrepreneur contributors are their own. More from Entrepreneur. Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization! Schedule a FREE one-on-one session with a Franchise Advisor Choose one of our programs that matches your needs, budget, and timeline Launch your new franchise organization.
Learn More. Become A Member. Shop Now. Latest on Entrepreneur.