You’ve decided to start a small business, but how do you know what legal requirements you’ll need to meet? While your state’s laws will vary, some requirements are common regardless of location. These include tax filing, divvying up income, and asset organization. Before forming a business, take the time to familiarize yourself with the laws and regulations governing small businesses. Here are a few basic steps you can take to get started.
Before starting a small business, you’ll need to gather the required documents and register your business in the appropriate state. This includes an EIN (tax identification number), which is like a social security number for a business. The State of Oregon charges a fee of $100 for this, but this fee is only required if you plan to do simple transactions without using a third-party service. In addition to these legal requirements, you’ll also need a business license or sales tax license, unless you’re operating in a state that requires a different kind of permit or license.
If you’re planning to hire employees, you’ll need to understand federal and state employment laws. These laws govern how you must treat your employees. You also have to comply with federal and state mandates in the fields of safety, labor, and taxes. In addition, you’ll need to find out what kind of structure your business will take. For example, a sole proprietorship, a limited liability company, a trust, and a co-operative are all options.
