Business Law

Launching your own business is an exciting event, but your enthusiasm can quickly get dampened as you consider all the not-so-fun tasks you’re gonna have to accomplish in order to run a legitimate company. Choosing a business structure, registering your company, getting an accounting system going, and making sure you stay compliant with the rules and regulations in your state take a lot of time and effort. But it’s all worth it! So read on and tackle these four tasks to get you started:

Forming an LLC

When you start a business, think about protecting your personal assets by forming a limited liability company. In the event of a legal dispute, your business will be its own legal entity, so you’ll only be risking the money you invested in it while keeping your personal bank account, home, vehicles, etc., protected. So make sure you keep your business and personal expenses separate. Don’t commingle funds, and keep careful accounting so as not to pierce the corporate veil and put your personal assets and properties at risk.

Getting an EIN

An Employer ID Number, or EIN, is required of businesses by the Internal Revenue Service in order to file their taxes. You also need this EIN to open a business account at a bank or financial institution. And if you’re planning on hiring employees, it will be required as well so that the IRS can track your payroll tax remittances. You can use an online formation service to easily obtain your EIN by providing the information you used to set up your LLC. And there’s another advantage of getting that unique 9-digit number for your business: since you won’t be using your personal social security number to interact with lenders and vendors, you’ll be less likely to become a victim of identity theft.

Setting Up Your Accounting

As we’ve noted earlier, keeping careful accounting of your business expenses and revenue will help you stay in compliance with the IRS when it comes to small business payroll taxes. But if crunching numbers isn’t in your wheelhouse, consider hiring a freelance CPA or accountant to set you up with proper accounting practices right from the start. And take advantage of the latest digital technologies by using small business accounting software, which is designed to automate bookkeeping tasks and make data entry less of a chore – and less prone to human error. You’ll also be able to track your income and expenses in real-time, which will help you make sound financial decisions for your business.

Protecting Your Intellectual Property

Some businesses are born out of the creativity and ingenuity of their owners. Maybe you’ve invented a nifty new gadget, or you’re a creator, and you started selling your artwork to customers. Whatever the case is, if your company holds patents, trademarks, copyrights, or licensing rights, look for a business attorney to help you navigate all those legal issues. An experienced lawyer will assist you in protecting your trade secrets and be on your side if you’re ever faced with an infringement lawsuit.