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4 Legal Requirements to Start a Business

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Requirements to Start a Business
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When you start your business, you have numerous ideas in your mind, tons of energy, and positivity. But, one thing that most of you miss out is the legal side of the business that if not done in the right way can ruin your business.

You do all possible things from making a strong business plan to budget arrangements, employee hiring, and then the generation of profit from your business. One thing that you compromise on is the legal matters associated with your business.

This article is about the legal requirements that one needs to consider and know in detail, even before establishing the base of business.

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Just like in bigger companies like iSelect, you Contact iSelect to find suitable high speed NBN service provider, in any type of business that you do, you have to contact a credible lawyer to help you with legal proceedings of your business.

We will discuss four major of these, and you must stay with us to learn about them in detail.

1. Select and Register Legally Permitted Name for Business:

When you select the business name, you have to make sure that it may not resemble or similar to anyone of the already existing brand.

This can create outrage against you by that company, as well as by the people who buy their products. So, you have to do it very consciously and avoid this blunder at the very initial stage of your business.

After you select the name, and before you print out the cards with this name of your business, you have to register this name immediately.

This is important for the security of the name you chose, as well as for your business because it will be now your right, and no one else could use it without your consent.

2. Form an LLC for Your Business:

If you want to protect your business, the properties, the college funds of your children, and any kind of liability, you have to get the LLC or corporation for it.

As every business has its formalities, so LLC is beneficial for each one according to the situation of that business.

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Mostly it is said that LLC is best for small business owners as it protects them against any frauds or problems that big business owners could create for them.

There are other types of corporations that a business owner can get. These include the S Corporation and C Corporation. People use them according to the type of business they have.

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3. Get Federal Tax ID Number:

For running your business legally, and making it credible, you need a proper federal tax ID number for it. It is also sometimes known as an employee identification number (EIN).

This number is given by the government authorities to the company. It serves as a social security number for the company and can be used to track the transactions of the company.

Therefore, you must have it to have a legal presence in a country, and also to protect your business.

4. Get License at Initial Stage:

You have to get permits and licenses for your company at a very initial stage. As soon as you establish your business, you have to apply for it so that only you can claim to have that business, and also give evidence if asked about the legal authority of running that business.

Conclusion:

Legal matters of business are very sensitive, and being an owner, you have to take care of them at the right time to avoid any problems for yourself, and also to avoid objections from authorities. They will also protect your business, so consider it.

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Paschal Okafor is NaijaTechGuide Team Lead. The article 4 Legal Requirements to Start a Business was written by Manoar Molla. The article was last modified: February 17th, 2020

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