Five Steps to Starting a Business
Starting a business can seem like a daunting task. There are many steps to take, and many legal issues to consider. Here are five steps that one must take when seeking to establish a new, legitimate, and lawful business.
Familiarize yourself with legal requirements and responsibilities
It is important to educate yourself on the various legal requirements and responsibilities inherent in owning a business, from the requirements for hiring, paying and firing employees, to tax requirements, permits, and learning to manage legal risks.
You may want to contact your local municipality and county to find out about local regulations. A qualified attorney can also help to ensure that you are aware of all of your legal requirements and responsibilities so that you can avoid any grave missteps that could lead to legal trouble in the future.
Determine your future business’s type of legal entity
There are various types of businesses, all of which have slightly different tax requirements. Your business could be a Sole Proprietorship, Partnership, Corporation, or Limited Liability Company (LLC). It is important to decide which type of entity is best for your business, and to follow the proper protocol to ensure that you file for taxes correctly.
Depending on the type of business entity that you will be operating, your steps for business formation will vary. For example, if you are forming a corporation, limited partnership, or LLC, you must file formation or authorization documents for the public record. You do not have to complete this step if you are forming a general partnership or sole proprietorship.
Apply for an EIN number
In most cases, you will need to apply for an EIN number. An Employer Identification Number, also known as a Federal Tax Identification Number, is used to identify your business entity. There are a number of ways in which you can apply for an EIN number, but you must first know your business’s legal entity type.
Business Registration Certificate
If your business is going to contract with any public agencies in New Jersey, including colleges and local school boards, you will need to obtain a Business Registration Certificate as proof of registration.
Register your business name (DBA)
If you choose to name your business anything other than your or your partner’s personal name, you will need to register your business name, or your Doing Business As (DBA) name. This registration will allow you to use this name for financial and advertising purposes.
Call Himelman & Himelman
For more information about how to start a business and how you can begin the processing of starting your own business, visit our Business Formation page.
Our attorneys at Himelman & Himelman have extensive experience in forming business entities and helping them succeed regardless of the industry or service. The knowledgeable, dedicated legal team at Himelman and Himelman will research and counsel to ensure that you make the right choices when forming your business.
To schedule your free initial consultation, call us at 732-842-8200 or contact us online today.