Navigating legal requirements doesn’t have to be overwhelming—start by choosing the right business structure for you're situation. Sole proprietorships are simplest but offer no liability protection, while LLCs shield you're personal assets without complex paperwork. Corporations (S or C) suit businesses planning to scale or seek investors but require more maintenance. Use free resources like SCORE or you're local SBA office to understand each options pros and cons.
Next, tackle licenses and permits. Requirements vary by location and industry, but most businesses need at least:
✓ A general business license (check you're city/county website)
✓ Sales tax permit if selling products
✓ Professional licenses (for fields like real estate or cosmetology)
Don’t skip contracts, even with friends or family. Simple templates from LawDepot or RocketLawyer can cover:
• Service agreements
• Independent contractor terms
• Non-disclosure agreements (NDAs)
Taxes get easier with prep. Get an EIN (free from the IRS) for banking and hires. Track expenses religiously—tools like QuickBooks Self-Employed categorize deductions automatically. Set aside 25-30% of income for taxes to avoid year-end surprises.
Finally, protect you're brand with a trademark if you’ve created a unique name or logo. The $250 USPTO fee is worth preventing costly rebrands later.
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