what are some of the legal considerations to start a business? course hero

What are the legal requirements for starting a business?

When starting your own business, there are a number of legal requirements that you have to satisfy or adhere to. The most important ones are: One of the many important decisions you have to make when starting a business is to decide on the legal status or structure of your company. Your chosen legal structure will affect how you run your business.

Why is it important to choose a legal structure for business?

One of the many important decisions you have to make when starting a business is to decide on the legal status or structure of your company. Your chosen legal structure will affect how you run your business.

Do you know which laws apply to your new business?

Knowing which laws apply to your new business is something that is also important if you want to open a company overseas. If you want to expand globally, make it a priority to consult a trusted corporate law firm to guide you every legal step of the way. Our guest author Al Tamimi is senior partner at law firm Al Tamimi & Company.

What are the most important business decisions to make when starting?

The most important ones are: One of the many important decisions you have to make when starting a business is to decide on the legal status or structure of your company. Your chosen legal structure will affect how you run your business.

Business Structure

The most common business structure small businesses choose is an LLC or limited liability company. LLCs are common since this business structure provides a form of liability if you neglect a contract or fail to make bill payments. Even though LLCs can be difficult to manage, you have some protection rather than having zero protection.

Tax Requirements

To make sure that you will not have any legal issues when you launch it is crucial to check tax requirements. You can start by familiarizing yourself with the federal tax requirements. Many business owners check these thoroughly. However, they do not check the other tax types — local and state taxes.

Business Name

You need to do a careful search on the Internet before you pick your business’ name. You need to check if another business operates with the same name as yours. You need to be meticulous to avoid issues with infringement upon the trademark of another company.

Licenses

Before you can open your business, you need numerous licenses and permits. The licenses your business needs depend on what kind of business you are planning to put up. The most basic things you will need are a trading license, business license, and sales tax license.

Insurance

Many business zones require owners to have a particular number of employees to have employer’s liability insurance. Nevertheless, insurance goes beyond a legal requirement. If you have insurance with ample coverage, you can prevent fines that can incur if you are not insured.

Confidentiality And Non-Disclosure Contracts

You need confidentiality and non-disclosure agreements if you will enter a contract with suppliers or work with banks or other people for business financing. That is because they will be able to see information about your business that you might want to keep confidential.

Related Health And Safety Laws

You have health and safety accountability when you have a business. This means you have to ensure the safety and health of your employees in the workplace. You also have the responsibility for the safety of your visitors and clients inside, outside, and around your business premises.

What is the most important decision to make when starting a business?

1 - The legal structure of your business. One of the many important decisions you have to make when starting a business is to decide on the legal status or structure of your company. Your chosen legal structure will affect how you run your business. It will also have implications on how you pay your taxes and keep your accounts. ...

Is it exciting to start your own business?

Nothing can be more exciting than the thought of opening your own business. But you have to go through numerous processes when starting your own company, so much so that your excitement can easily dissipate just thinking about them. Top lawyers say that learning about and dealing with the legal issues that come with starting your venture first can ...

Do you need to have liability insurance for a business zone?

Most business zones require all businesses that employ a number of workers to get employer's liability insurance. But aside from being a legal requirement, when you have sufficient coverage, you will avoid incurring fines every day that you are uninsured. You also avoid leaving yourself vulnerable to compensation claims from employees and visitors who may get injured or sick while they are in your premises.