Legalities of Starting a Business

Starting a business means there are laws to follow, and several things to consider on the legal front. Now, I am by no means a lawyer, so by telling you that, you cannot sue me if you act on something you see here and it’s not the the correct course of action to take. Having said that, I am not going to intentionally steer you in the wrong direction, and you can trust that this information is well researched!

Now, the problem with this is that I cannot provide specific advice for each business type that may be starting, and I certainly cannot offer specific advice based on locality. So, what I am going to do is give you generalized advice on the legalities you need to follow, and point you in the direction of information for some of these specifics!

You are not required to file any doing business as or fictitious name paperwork if your name is part of the business name. For example, if you name your business, “(Insert your First or Last Name Here) (Insert Business Service Here)” you are safe. Something like Smith’s Website Design is safe, but Indigo Website Design, is not. For information on filing DBA or Fictitious Name paperwork, check out: Doing Business As Information @ About.com

Check with your county to find out what you need to do in order to be legal. Then, check with your city to find out what you need to do to be legal. Of course, check with your state, and then finally federal levels. Just because you are legal on the state level, does not mean you are legal in your county or even your city, because each government can have regulations that you need to follow. For instance, living within the city limits of my area, I have to have a permit to operate my business out of my home, which cost $50. I also had to file for a privilege license for tax purposes with the county. When I moved out of the city limits, I no longer have to have the permit for the home business, and the county license still holds. But, because I moved into a township, I now have to file for an additional privilege license for the local tax purposes. See how complex it can get? Google your county, city/town, and find out what you need.

Depending on your business structure, you may have more legalities to follow. Forming your business and business structures will be discussed in tomorrow’s blog. Further detail on those legalities will be discussed in two weeks when we talk about each business structure individually. (See the benefits of planning?)

Share your thoughts below. What legalities have you become aware of about starting a business? Offer what knowledge you can to help fellow aspiring entrepreneurs.