Starting a business is exciting, and sometimes business owners can get so caught up in the whirlwind that they neglect to ensure that their business is compliant with all legal regulations.
For instance, one of the first things a business owner needs to do is decide on a business structure â€“ sole proprietor, partnership, limited liability or corporation. Once thatâ€™s done, they need to apply for an Employee Identification Number (EIN) through the Inland Revenue Service (IRS) as this is what will be used for tax purposes and what will differentiate the business from all others.
When it comes to taxes, getting to grips with what taxes have to be paid and registering for any state or local taxes is also a must. This varies from state to state, so itâ€™s important for business owners to check what applies to them.
Then there are licenses and permits. These depend on what kind of business is being set up, and where. Again, these vary across the country, so business owners need to check with their local authorities as to what they need to do to be compliant.
To minimize the risk of any legal snafus, itâ€™s a good idea for a businessâ€™s lawyer and accountant to be involved from day one â€“ theyâ€™ll spot any compliance mistakes.
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