As a new entrepreneur, ensuring that your business complies with all federal, state, and local regulations is important.
You will need to take immediate care of certain legal issues. Young Entrepreneur Council members have compiled a list of 10 tasks that you should complete immediately after starting a business.
Having all legal issues in order is crucial when you start your business.
What is the one legal issue that new entrepreneurs need to address immediately?
1. Establish a company mailing address
If you have a remote business, it is important to establish a company mailing address. This address will be used for all correspondence and legal documents. This can be done through a registered agent or a company that manages mailboxes for business. Be aware you can’t use a P.O. You must provide a physical address and a mailing address to receive certain government forms.
2. Examine for trademarks that are already in use
When starting a business, trademark issues are important legal issues. Always check whether someone has already trademarked your name before you start creating your brand. You will need to go back to the drawing boards if they have. You want to avoid infringing upon a registered trademark, which could land you in serious legal trouble.
3. Look for a reputable, experienced lawyer
A good lawyer will deeply understand corporate law, finance, mergers, and acquisitions. Although it is impossible to predict what legal issues you will face in the future, good lawyers can help you navigate these challenges. Good law firms can help you modify documents and assist with negotiations. It is essential to have a lawyer who can structure legal issues.
4. Set up an LLC or corporation to manage your business.
One of the most critical legal considerations when starting a business is establishing it as a limited liability corporation (LLC) or corporation. Because every step in the business-opening process requires the legal name of your business, this is what allows you to obtain a federal tax I.D. It is also necessary for important financial elements such as bank accounts or insurance policies.
5. Financial agreements should be written
Financial agreements should always be in writing. Money can quickly break relationships and kinships. You don’t want to have any misunderstandings in the future. The nature of the return should be included in the agreement. This agreement is a commitment and a statement of your intention to make money with the business.
6. If necessary, publicize your company’s legal
Before you start your business, you must determine whether you are required to advertise your company publicly. Before a business can be recognized, some cities and states require that owners publicly declare the creation of their company. Please comply with this requirement to avoid fines, confusion, or legal problems.
7. Know your estimated tax payments
Talk to a CPA about the estimated tax payments if you provide professional services. If you owe back taxes, it would be a shame if your license is revoked. You don’t want your IRS dues to be underestimated or to find yourself in a financial bind during your first years of business.
8. Follow the correct payment rules
You must ensure that payment regulations are adhered to. There are many regulations that you must follow to accept payments from clients. This is particularly important for clients who are located in foreign countries. You will need to take into account currency exchange rates as well as taxes. Working with a lawyer can help ensure your business follows all legal requirements.
