Every year enterprising entrepreneurs look forward to turning their dreams into reality by establishing their own businesses. Many of these young proprietors usually have brilliant ideas on how to fill up an acute shortage in the marketplace and immense optimism. Unfortunately, many of them are unaware of the legal formalities they need to complete to start running their businesses. They are normally too busy attracting new customers, launching a user-friendly business website and the introducing the first prototype of their products to the public. However, they seem to forget that they need to also take care of unglamorous legal aspects of operating their businesses.
Daniel E. DeKoter – How to establish your own business?
Daniel E. DeKoter is a prominent business attorney from Sibley, Iowa. He says it is important for entrepreneurs consider the following legal aspects of starting a business organization:
- Choosing a proper name
Even before you consider printing your attracting business cards, you need to think of a proper name for your establishment. This name should not be identical or infringe the legal rights of an existing business organization carrying on its operations in the marketplace. It is prudent on your part to conduct online search by browsing through the website of the ‘Secretary of State’ on names of registered companies in the country. Next, you have the visit the ‘U.S. Patent and Trademark Office’ to make sure the name you choose for your organization does not violate the trademark of anylawful business enterprise.
- File a DBA (Doing Business As) application
Once you have come up with a proper name for your organization you need to file a DBA (Doing Business As) application with the regulatory authorities. You need to document when you intend to establish a sole-proprietorship or a partnership. However, the name of your organization is different from that of your own. Again, in the case of limited liability company, you require a DBA when you carry on business operations under a different name that the one you registered with such authorities.
When if you want your business to be a limited liability company (LLC) or a corporation, you need to incorporate it with the relevant authorities looking after company affairs. This is safeguard the assets you own from the liabilities you may incur while conducting your business.
- Obtain a Tax Identification Number for your organization
To classify your organization as a distinct legal entity you need to get a tax identification number that the Internal Revenue Service (IRS) issues to all businessmen at the federal level. This regulatory authority refers to it as an ‘Employer Identification Number (EIN)’. For this, you need to submit the relevant documents with them.
- Get relevant business permits
Depending on the type of business you wish to conduct and location of your registered office, you need to obtain relevant business licenses from the regulatory authorities.
Daniel E. DeKoter says you need to fulfil the requirements of the above 5 steps to establish your business. In addition to this, you need to have a thorough understanding of important employee laws before you can hire people. You also need to get a trademark of the product in intend to introduce in the market.