Starting or running a business is no easy task. As a small business owner, you’re guaranteed to wear many hats. Your greatest asset will be to keep an open mind and a willingness to tackle any challenge. There are many steps you must take before you can even start operating your business. Once you’re in business there are other challenges ahead that you should be prepared to face.
There are many decisions to make that will affect your business. Things you should consider before doing anything else:
Take these three steps once you’ve selected your business name.
Next you will need to decide how you’ll set up your business. The structure you choose may have legal and tax implications for you and your business. You’ll want to choose a structure that best meets your needs and fits with your plans for the future.
For more details on this topic, check out NextGen Counsel’s article, The ABCs of INCs https://www.nextgencounsel.com/the-abcs-of-incs/
Once you know you can use your business name (without legal concerns) and you’ve formed your business entity, you should register for a federal tax ID# and state tax ID#. Your federal tax identification number, AKA Employer Identification Number (EIN) is just as important as your social security.
Here’s why you need a federal tax ID:
Once you’ve received your EIN, you then must apply for a state tax identification in the state(s) where your business is formed and where your business is registered/authorized to do business.
Don’t overlook this. Here’s why.
Having the right insurance will help protect you, your employees, and your property. There are many types of policies, but make sure you at least cover yourself / your business with the following:
Commercial Property Insurance
Commercial property insurance covers losses to your business’ physical property (such as inventory, supplies, and real property) from natural disasters or other causes of loss of or damage to your property. It can also cover any legal costs associated with accidents on your property.
General Commercial Liability Insurance
It is important to think about liability insurance. All businesses face the risk of litigation, and this can land your business in serious trouble. You need general commercial liability insurance to protect against potential claims from customers, clients, vendors, or other parties you encounter.
There are many instances you can face as a business when you’ll be happy you have this coverage. Here are a few:
Workers Comp Insurance
Having proper workers’ compensation insurance coverage is a smart investment that protects your business and employees.
Here’s 3 reasons why you need it for your business:
1. It’s required in most states.
2. It helps injured workers get the help they need.
Workers’ compensation coverage provides a safety net that helps injured employees get the medical and wage replacement benefits they may need.
3. It protects your business.
It helps businesses avoid the real cost of an employee’s medical expenses and lost wages following a workplace injury or illness. Without it, the medical expenses associated with even one major workers’ compensation claim could cause irreparable financial harm. It also pays an attorney to represent your business against a claim.
We all know how important it is to have a great website. You can’t just rely on social media to build a business. Other than providing content about your business you should make sure your website has these three things that are easy to overlook.
Privacy policies are used to disclose your practices on protecting personal information. It’s a great way to show people that you can be trusted, and that you have put procedures in place to handle their personal information.
It’s easy to overlook but it’s pretty easy to make your website ADA compliant. This doesn’t have to be complicated or cost a fortune. There are numerous plug ins to add to your website that enables your site to be accessibly by users with disabilities.
If you’re collecting customer data or doing business from your website, you should include a term of use. This is a way to set to disclose rules and regulations for visitors using your website.
If you’re renting a space for your business, there are a few things you should be aware of.
Even if you’re not able to negotiate better terms, you should still understand your rights and obligations under the lease. It is important to go over the terms of the lease with your attorney prior to signing.
When hiring employees there are a few policies and procedures you should have in place:
You may think you don’t need a lawyer now, but working with an attorney can save you and your business a lot of money and headaches in the long run. When starting your business there are many things that may be insignificant in the moment but tremendously important down the road. Or other things you just wouldn’t even know to think about. At NextGen Counsel, we aim to build lasting relationships with our clients by being transparent about our pricing, approachable, responsive, and practical. From inception to expansion, NextGen Counsel will be a resource for you.
Information contained in this post is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the with Michael H. Ansell, Esq., or other competent legal counsel.