8 Legal Facts to Know When Starting a New Business Venture

When starting a business, there are many legal things to consider. Here are eight of the most important ones you will want to remember.

1. Type of Business Entity 

While many small businesses start as a sole proprietorship, other options exist. If you have a partner, set up a partnership. Some new ventures start as corporations or LLCs. Regardless of which one you choose, ensure that you follow the laws in your state to establish that type of entity.

2. Licenses and Permits 

Depending on your type of business and location, you may need various licenses and permits. You may need federal permits and licenses in some industries, but you must meet state, county, or city requirements in others. You can determine your state’s requirements by contacting the Secretary of State’s office.

3. Tax Requirements 

You will need to file taxes under your business. Furthermore, you may have to collect sales taxes. If you plan to operate the business yourself, you must also pay self-employment taxes. You will likely need aTax Identification number.

4. Zoning Laws 

Ensure that your business complies with all zoning laws. Generally, a city has areas zoned for industrial, light industrial, commercial, light commercial, agricultural, single-family residential, multiunit residential, and schools. Your location must be in an approved zone, or you must get the city to approve a zoning exception.

5. Employer Laws 

If you plan on hiring others to help you in your venture, you must follow your state and city’s employer laws. For example, you must obey the health and safety standards of OSHA rules. Ensure you cover your employees with worker’s compensation. Furthermore, you must not break laws in your advertising to find the right employees.

6. Patent and Intellectual Property Laws 

Especially if your new venture is in manufacturing, ensure you do not break any patent laws. These laws give the inventor the right to do what they want for a particular period, usually 20 years. Furthermore, you should ensure you do not break any intellectual property laws. In addition to patents, these laws cover trademarks, copyrights, and trade secrets. Talking with a business lawyer can help you stay within the law. You will also want to file patents for products you create.

7. Family and Medical Leave Act 

While it can be challenging to find the right employees, you need to ensure that you treat them right. Part of that is following the Family and Medical Leave Act so that your employees can take time off to care for sick and dying loved ones.

8, Equal Opportunities Law 

When hiring and promoting employees, you must follow the equal opportunity law. It is against the law to discriminate against a candidate based on any characteristic. Common examples are race, age, and disability.

There are many laws that you must follow as you start your venture. Some carry hefty fines if you are found guilty of breaking them. Therefore, if you have any questions, speak to a lawyer. Good luck with your venture. Following your passion can be a life-changing experience.