There are a few legal formalities that you need to take care of before you can start your business. Depending on the type of business you want to start, these formalities may vary. However, there are some general things that you need to do in order to get your business up and running. Ian Mausner will now take you through them.
Legal Formalities You Need to Follow When Starting a Business
Register Your Business
According to Ian Mausner, the first thing you need to do is to register your business with the relevant authorities. This will vary depending on the country or state you are starting your business in. In some cases, you may need to register with the local Chamber of Commerce or with the Department of Trade and Industry.
Obtain an EIN from the IRS
If you are starting a business in the United States, you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This is a nine-digit number that is used to identify your business for tax purposes.
Get a Business License
Depending on the type of business you are starting, you may need to obtain a business license from the relevant authorities. This will allow you to operate your business legally.
There are many different types of business licenses, so make sure you get the right one for your business. For example, federal licenses are usually required for businesses that deal with firearms, alcohol, and tobacco.
Get Insurance for Your Business
It is also important to insure your business, especially if you are starting a brick-and-mortar one. This will protect your business from any risks or liabilities that may occur. Ian Mausner states that you can get a General Liability Insurance which will cover you for any injuries or damages that may occur on your premises. You may also opt for Product Liability Insurance which will cover you in case any of your products cause damage or injury.
There are many other types of insurance that you can get for your business so make sure to talk to an insurance broker to see what would be best for you.
Get a Business Bank Account
Once you have registered your business and obtained all the necessary licenses and permits, you will need to open a bank account for your business. This will help you keep track of your finances and will make it easier to manage your money. To open up a business bank account, you will need;
- Your business registration documents
- Your business license
- Your EIN
- Personal identification such as your passport or driver’s license
Once you have all of these documents, you can approach your chosen bank and open up a business account. Make sure to shop around and compare different banks before making a decision.
Consult a Professional
Starting a business can be a complex process, so it is always a good idea to consult with a professional. They can help you with the legal aspects of starting your business and can give you advice on how to get your business off the ground.
Starting a business can be a daunting task, but if you are well-prepared and have taken care of all the legal formalities, it can be a very rewarding experience. Now that Ian Mausner has mentioned what legal formalities you need to fulfill in order to start a business, you can get started right away.