If you are a new entrepreneur, an important task is to ensure that your business complies with all local, state, and federal regulations.
Some legal issues need immediate consideration and these issues need to be addressed as soon as possible. in order to help, Young Entrepreneur Council Members share 10 essential tasks that need to be taken care of immediately when starting a business.
When starting a business for the first time, it is important to resolve all legal issues as soon as possible. In your experience, what are the legal considerations that new entrepreneurs need to address immediately, and why?
1. Set up your company’s mailing address
Setting up your company’s mailing address is important. This is especially important if your business is remote and you don’t have a physical location. This address will be used for all email communications, legal documents, etc. This can be set up through a registered agent or the company that handles corporate mailboxes. Please note that a PO Box cannot be used to receive certain government forms and a physical mailing address may be required. — Nathalie Russier, AccessAlly
2. Confirmation of existing trademarks
One of the legal issues that must be dealt with when starting a business is the trademark issue. When creating a brand or developing a product, always check to see if someone has trademarked the name. If there is, you’ll have to go back to the drawing board. Before getting your business off the ground, the last thing you want to do is get into legal trouble by infringing on a registered trademark. — John Brackett, Smash Balloon LLC
3. Find a good and experienced lawyer
Hire a good attorney who understands corporate law, finance and M&A. It’s impossible to know the future legal issues you’ll face when starting a corporation, but a good lawyer knows what’s ahead, even if you don’t. documents and assist in negotiations. Having a good attorney who understands how legal matters are structured is important. — Sean Adler, GZI
4. Establishing a business as an LLC or corporation
When first starting out, one of the most important legal considerations to handle is establishing your business as a limited liability company (LLC) or legal entity. This is because all other steps in the business opening process require the legal name of the business. This will enable you to obtain a federal tax ID, which is also required for key financial elements such as bank accounts and insurance policies. —Richard Fong, Trustable Tech
5. Get financial agreements in writing
All financial agreements must be in writing. Money can easily destroy friendships and kinships, and you don’t want misunderstandings in the future. This is a serious expression of your commitment to the business and your intention to make money from it. — Bryce Welker crushing the GRE test
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6. Legally promote your company when necessary
One of the first things to do before starting a business is to decide if you need to legally advertise your company. Some cities and states require you to publicly announce that you have incorporated a company before it can be recognized as a business owner. Failure to follow this procedure can result in significant fines, confusion, and legal issues.—John Turner, SeedProd LLC
7. Understand estimated tax payments
Consult a CPA for estimated tax payments, especially if you are providing professional services. Losing your license because of unpaid taxes would be a shame. In your first few years in business, you don’t want to underestimate your IRS payments or find yourself in financial trouble. Quarterly estimated tax payments are ideal. —Givelle Lamano, Ramano Law Office
8. Make sure you’re following the correct payment rules
Make sure you are compliant with payment issues. There are many regulations that govern how we accept payments from clients. This is especially important when working with clients living in foreign countries, as exchange rates and taxes must be taken into account. Working with a legal expert can ensure that your business follows all the correct rules. —Syed Balkhi, WP Beginner
About the author
Young Entrepreneur Council (YEC) is an invitation-only organization of the world’s most successful young entrepreneurs.