Starting a Business the Right Way
Starting a business is one of the biggest decisions that many people will ever make, so it is important to make sure it is done right. Ensuring that all the proper paperwork and licenses are in place is important to ensure that there are no distractions or unexpected headaches that will distract you from actually running your business.
Alphabet Soup of Business Names
Businesses are often classified by the way in which they are legally organized under state law. States allow businesses to operate in a variety of legal manners. An old fashioned business model that is the “sole proprietor”. This is historically common, but is going out of fashion as that form tied liability of the company directly to the owner, or the “proprietor”, so many business owners opt now for other business formations to avoid personal liability for business problems.
The other major traditional type of business is a corporation. Corporations are generally required for large entities but smaller businesses also use this form as well.
Additionally, partnerships are a popular traditional business form. In this form, a group of individuals jointly own a business and share equally in the profits and losses of the company. Many partnerships have adopted a limited liability model to avoid personal liability, and are called “LLPs” for short.
A popular business form among smaller businesses is the Limited Liability Company or LLC. This is often called a hybrid of the partnership and corporate model in that the LLC takes some of the more informal management procedures of a partnership and combines them with limited liability nature of the corporate form.
Determining the right type of business form for your business’ needs is a key decision that you need to make when you are forming your business.
Licensing Your Business
Licensing requirements vary significantly from locality to locality depending on your type of business. It is key to obtain the appropriate license from any local tax office or licensing board in order to stay in compliance with legal requirements.
Filing the Right Documents
Each state and locality has its own rules about what businesses have to do to legally operate a business. And those rules vary on the exact location of a business, the type of business (accountants have to follow vastly different rules than ice cream shops!), and the size of the business.
Researching information on your state county, or city government’s website (be it Arizona, New York, or New Jersey), can be a helpful start to put you on the right track. But, the information provided by the state or local government may not answer all of your questions or even lead to additional questions.
Contact a Knowledgeable Law Firm for Guidance
Creating and maintaining a business can be a daunting endeavor. The experienced and dedicated attorneys at Callagy Law are ready to help answer your questions about forming a business or ensuring that your existing business is in compliance with the law. Contact Callagy Law now for legal guidance.
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