Don’t Start Business Without Consulting an Attorney
February 28, 2008 by Michelle Waters
Welcome to Episode #23!
In our continuing series about Starting Your Business the Right Way, it’s time to discuss the legalities of opening a business. Get your pen and paper ready for lots of note-taking!
*Please note that this information should NOT take the place of legal advice from a qualified attorney*
When creating your business, first check out your state and local township offices about obtaining business licenses and filing DBA paperwork (Doing Business As). Every state and local municipality will have different rules so check carefully and early in the planning process. Also do a search to determine if anyone else is using your chosen business name.
A qualified attorney is a must-have when deciding if you should create a sole proprietorship, LLC or C Corporation. Each classification meets different needs. If this paperwork is filled out incorrectly or does not suit your needs, you risk having to pay even more fees to get it done correctly and possible penalties.
Some resources for legal advice are: Prepaid Legal Services and Law Girl. Or call up your local Chamber of Commerce and ask for a local referral.
An attorney can also help you understand the differences between copyright and trademark, especially when it comes to web content or business name. Rights for Artists is also another resource if you have questions about content or graphics usage.
If you manufacture your own product, you need to check on your local zoning laws. Depending on your product and your local laws, you may be restricted from creating these products at your home.
Also research and understand the following taxes and how to file this paperwork with your state: employment tax, self-employment tax, and state sales tax. Penalties will add up quickly if you miss a deadline.
While doing your own research on these topics is paramount, asking an attorney for clarification and help filing paperwork will help your business get started on the right foot.
Thank you Michelle for mentioning Pre-Paid Legal Services, Inc and subsidiaries! Since that is my primary home based business, I wanted to add additional comments and urge home based business owners, as well as self employed entrepreneurs to look at the information offered by our company. Along with the outstanding benefits of a Small Business Plan, members also have access to one of the best resources out there today through GoSmallBiz.com! I am in the process of incorporating my Web Hosting & Design business and I absolutely could not even know where to begin without my Pre-Paid Legal Membership access to the endless resources and unlimited consultations with my attorneys. With my self employed plan, my family is also covered and that is PRICELESS with a 15 year old new driver in the home! I also got my Last Will & Testament completed with real attorneys (for free with my membership i might add) and have my Living Will with Durable Power of Attorney in place as well. I cannot imagine being without “my people” for personal nor business legal assistance.
Thank you for ALL you offer and share with us,
Kate Ericksen, Independent Associate, WAHM, Business Owner and Small Business Advocate
Denver, CO
[...] explains the difference between copyright, state trademark, and federal trademark. She also gives references for learning more about filing the proper paperwork, doing searches for business names, where to [...]