There’s nothing as brave as finally taking the first steps to create a business start-up. There are many fun things that go into starting a business, like ordering inventory, hiring the best people for the job, and being creative with graphic design. However, not everything about running a business is fun– like looking into legal issues. This article takes a look at some of the more important legal matters to take into account to keep your start-up secure.
Licenses and Permits
Depending on what kind of business someone is starting up, he or she will need a number of different permits to make sure everything is legal and safe. Usually, when people think of business licenses, a liquor license comes to mind. However, even if a business does not intend to sell alcohol, it’s likely that they will need a license or permit of some sort.
So, which businesses need some sort of license or permit? As it turns out, most businesses need a permit for one thing or another. A general permit to start a business, building permits, and similar licenses and permits are common. Look into what you need before you start a business to avoid legal troubles down the road.
Filing taxes for a business is a little different from filing taxes as an individual. Firstly, every business needs its own tax ID number. Once a business does this, the business owner can start recording business transactions to save for tax season.
One thing to do to make sure that monetary records are as accurate as can be is to hire a bookkeeper or an accountant– someone who is good with numbers. If records are incorrect, the problems can lead to legal problems later. Always make sure to double and triple-check to make sure the math has been done correctly.
Legal Insurance and Attorneys
When starting a business, owners don’t want to think of the problems that could happen someday. It’s like the saying goes– “Better safe than sorry.” For this reason, its best to have insurance as soon as possible and pick some attorneys, just in case one is needed later.
Not all businesses give their employees health insurance, as it is not required. However, it would be wise for a business to have insurance to cover any accidents that employees might have at work. Without insurance, attorneys might be required to sort out problems between employees and the business owner.
Businesses that sell products, rather than provide a service, can still benefit from having insurance. Often, businesses (like grocery stores) will have insurance that covers theft, broken and damaged products, and similar problems. These are small issues in the large scheme of things, but every little bit helps!
How does a business owner expect his or her employees to act? What are the employees required to do during their shifts? Will any certain action guarantee job termination? Are there extra things an employee can do to earn more money? All of these questions and more can be answered in a company or employee handbook.
While writing up an employee or company handbook might take a lot of time to flesh out and make specific enough to meet the needs of the employees, company, and the law. Of course, it will all be worth it in the end.
Having an employee handbook ensures that each employee has the ability to check his or her responsibilities and expectations. This way, there should be no surprises if they are reprimanded for wrong-doing or rewarded for overachieving.
Before a start-up gets serious about doing business, the business owner needs to get their permits, licenses, tax information, and insurance dealt with. Hiring an attorney or writing an employee handbook can come later. All in all, if a business owner follows the tips in this article, then he or she is far less likely to run into legal trouble than a business owner who ignores these suggestions. So, good luck with your start-up!