Embarking on a business venture requires ideation, strategizing, and adherence to all legal stipulations. These obligations ensure businesses work within the legal framework and shield small business proprietors and their customers. Let’s take your inventive new business proposal and navigate through all the prerequisites you need to contemplate to successfully launch a business.
Enroll the Business Name
Your small enterprise requires a distinct name that your local and state authorities can utilize to monitor your operations. Unless you’re functioning as a sole proprietor under your personal name, it’s necessary to register a Fictitious Business Name (FBN) or Doing Business As (DBA). This chosen name will be registered with the county, and you’ll conduct business and submit taxes under this name.
If your business is in Texas, including sole proprietorships, partnerships, LLCs, or corporations, and operates under a name different from the one listed on the entity, you are legally obligated to file a DBA. This is where an LLC Registered Agent in Texas becomes indispensable.
Trademark Your Business Names, Logos, or Catchphrases
If your business operations are set to span nationwide or you’re planning to provide online services, it could be beneficial to trademark your business name. A Doing Business As (DBA) name or an incorporated business name doesn’t ensure brand protection across the 49 states where your business isn’t registered.
While getting a trademark isn’t obligatory, it does bolster your brand’s protection. This would entail filing a trademark application with the U.S. Patent and Trademark Office. If you choose to seek a trademark, begin with a comprehensive search to verify the availability of your chosen name.
Submit an Application for a Federal Tax Identification Number
A tax identification number serves as a unique identifier for your small enterprise in relation to taxation authorities. A Federal Tax ID, or the Employer Identification Number (EIN), is essential for establishing your business’s legality.
This EIN is necessary for various business activities such as paying your business taxes, applying for permits and licenses, setting up a bank account, and hiring and remunerating staff. An EIN is mandatory if your business is structured as a corporation or partnership, withholds income taxes, or operates a tax-deferred pension scheme. If there are changes in your tax status, business name, location, management, or ownership, you must modify or substitute your EIN.
Secure the Appropriate Permits and Licenses for Your Business
The oversight of most commercial endeavors falls under the purview of local, state, or federal entities. The only legal pathway to run a business involves obtaining the requisite permits and licenses. These documents signify your adherence to the guidelines and stipulations for conducting business within that jurisdiction.
There isn’t a uniform catalog of permits and licenses that one needs to secure. The specifics depend on several variables, including your location, business activities, industry, and governmental norms. Sometimes, you might be obligated to procure federal and state licenses and permits. Furthermore, based on the regulations of your city or county, you might also need to apply for local business permits.
Safeguard your Intellectual Property
Intellectual property (IP) represents any creation of the human mind legally shielded from unauthorized usage by others. It allows creators to receive financial benefits or acclaim for their inventions when employed by another individual.
While setting up a business, assessing if your product or service features a unique innovation that warrants protection from duplication is necessary. Without this safeguard, anyone could harness your creations for their own products and services.
Endnote
Based on the location and nature of the business, going through the steps to correctly register, name, license, and insure a new small business can be intimidating. However, investing time and effort in this process can be beneficial, as legal issues can accumulate rapidly, from regulatory bodies, other businesses, clients, and even the company’s own workforce.
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