Legal Requirements For Starting A Small Business
If you’ve decided to start a business, you’re on the right track. Some of the first things you have to do in order to get your new business off to a great start include writing a business plan, deciding on your business structure, and coming up with a list of goals you want to achieve. However, before you do all that, it’s important to understand all legal requirements regarding starting your company. With that said, let’s take a closer look at five of these you should be aware of before you start investing in your business idea.
Dealing with taxes
Just like individuals, businesses have to pay taxes. What’s important to know is that there are different types of taxes, and the one your business is supposed to pay depends on the business structure you opt for. For example, independent professionals are supposed to pay a different type of taxes than partnerships and corporations. Luckily, you should be able to find all information regarding taxes online and come up with a strategy for dealing with taxes early on. Just make sure you keep your personal and business finances separate if you want to make doing your business taxes easier. In case you don’t know how to do your company’s taxes, you can always hire a tax accountant.
Registering a business name
Every company needs a business name that helps separate you from all the other businesses out there. However, you can’t just decide on a business name and start using it. Instead, you have to register your business using that specific name for your brand. If you don’t, your company’s name will default to your name or the name of the legal owner of your business. Just make sure you’re aware of all the information required to register a new business in your area. If you want to register a business in Australia, there are online applications you can file. In case you plan to operate nationally or online, it’s also a good idea to get your business name trademarked. This should help avoid other businesses using the name you opted for and confusing your customers.
Obtain business permits and licenses
Depending on the industry you opt for, you are also going to need certain equipment, permits and licenses that allow you to operate in that specific sector. Just have in mind that these regulations usually depend on the area you’re based in. You can find some information online but your safest bet is to turn to local authorities and have them provide you with a list of permits and licenses you’re supposed to obtain in order to operate in your industry. For example, if you`re planing to try your luck in wood industry, you`ll need to have essential tools when starting your own woodworking business. Bear in mind that there are fees owed depending on where your business is located and what primary business activities you’ve opted for.
Check your zoning codes
Nowadays, many people decide to start an online business and operate from the comfort of their own home. The reason behind this is that more and more individuals shop online and companies are looking for businesses that can provide services remotely. In case you want to start an online business, another thing you need to do is check if you need to obtain a home occupation permit. This is an extremely important step to take, especially if your business has a large inventory or you have customers visit your home office. There are two tiers of permits for home occupation differentiating between small home occupation and large home occupation. However, the rules regarding home occupation also depend on the area you’re based in, so doing some extra research on it is a good idea.
Setting up a new business isn’t as easy as some people believe. Not only that you have to make sure you get everything right from day one in order for your business to succeed, but there are also legal requirements you have to meet if you want your business to be able to operate. Have the four requirements covered in this post in mind and you should be able to get your new business off to a great start.