If you are a new entrepreneur, it can be tricky to understand legal requirements. After you finalize your business plan and get your financing ready, it’s time to take care of the legal requirements and other obligations that you need to start your business. But if you are a beginner, you may not have a firm grasp of this concept yet.
Fortunately, understanding what is legally required of you is not that difficult, and there are many Townsville lawyers who can help you accomplish these legal steps.
1. Register your business name
If you’ve already decided on a name, make sure you legally register it before you print your business stationery. In registering your business name, you will most likely need to register a Doing Business As (DBA) or Fictitious Business Name (FBN). A DBA is needed if you do business under a different name. If you are a sole proprietor, you must have a DBA if you are using a business name different from your name (ex. if you are John Smith and you want to name your business ‘John Smith Legal Solutions’ you need a DBA).
On the other hand, if your business is a corporation or an LLC, you need a DBA to do business in a name that’s different from your official corporation or LLC name (ex. if your corporation name is BrandCo, Inc., you need a DBA to use name variations such as BrandCo or BrandCo.net.)
2. Acquire an EIN
An Employer Identification Number (EIN) is required for any corporation, partnership, or any business that has employees. You will need an EIN to open bank accounts, apply for business licenses, and file taxes, among other business necessities. A sole proprietor is not required to get an EIN, but it can help separate business assets from personal assets.
3. Educate yourself about employee laws
Learning about employee laws is the responsibility of all employers. Before you hire your first employee, find out what your legal obligations are, including payroll, taxes, insurance, OSHA regulations, worker’s compensation, anti-discrimination, and others.
4. Get the required business permits and licenses
Find out what business permits and licenses are required for your business, which will depend on its location and nature. If your business is regulated by a federal agency, you need to get federal licenses or permits. The same goes for local licenses and permits, which will depend on your state and city. Here is a list of federal agencies that require business licenses and permits.
5. Trademark your name
Although filing for trademark protection is not required, it can help protect and recover your intellectual property, which is your business name. Having your name trademarked will also allow you to operate your business across all parts of Australia.
After you get these five steps over and done with, you can now focus on your business and getting your first customers. And with all of your legal requirements and obligations taken care of, you can rest assured that you won’t run into any legal problems as your business grows.