Launching a small business is a life-changing move for every businessperson. It brings a certain degree of excitement, together with passion for professional improvement. However, there is also another side of being a small business owner – the legal aspects of business conduct. Even before you make up your mind to start your own business tale, you need to master some legal basics, to work in accordance with the law from the beginning of your career.
The importance of a catchy name
Just try to think of a brand whose products you use and ask yourself whether or not you would use them if they had a different name. As you can see, coining a catchy name is one of the most important steps taken along the business-founding avenue. When you look at the names of some of the most famous global brands, they rarely have more than two words. Even if it is a case, they force the use of acronyms. So, try to think of a catchy phrase that would consist of your surname and a common noun depicting your basic business activity. Incorporating your own surname into the name of your business is especially important when it comes to local small businesses. Also, check if the name you wish to give to your business is already taken. For instance, businesses in Australia can check the availability of business names by following this link.
What business type is your type?
This is probably the hardest decision to make when you want to launch your own business. Your whole business policy will depend on the type you choose for your business. From your own personal taxes to your income and your employees’ wages, the type of your company will determine your collaboration with the tax and insurance authorities. Basically, businesses that do not exceed the number of five shareholders should register as Limited Liability Companies (LLC). Also, you can also choose to register as an S corporation. It offers its shareholders a limited liability, but the earnings and losses are part of their individual tax returns. This type of business must have up to 75 shareholders. Finally, a C corporation is an option for larger players, who are planning to go public in the near future. It is based on stocks and is considered a single entity by the tax authorities.
Get in touch with the taxman
No business can work without the knowledge of the tax authorities. So, once you have registered your enterprise, it is time to go and ask the tax authorities in your region, state or country to give you your very own tax identification number. It will be your main business number, with which you are going to pay all your business-related taxes. What is interesting it that this number is called differently in different countries. For instance, in the USA it is called the employer identification number (EIN), while in Australia they call it the tax file number (TFN). In UK, it’s called the unique taxpayer reference (UTR).
Education on employees’ rights
Only sole proprietors do not have a right to hire employees. All other types of businesses are allowed to recruit workers in order to achieve better business results. You have to learn how the payroll is calculated and when the incomes of your workers are taxed. Furthermore, it is necessary to follow the strict anti-discrimination rules and regulations, since this is a delicate area. Also, you have to know when you are obliged to give them a day off, as well as how much they should be paid for overtime work. Since this is a wide area which can be very important for your everyday work, it would be smart to seek business legal advice, so as to avoid unpleasant mistakes.
The legal side of entrepreneurship raises numerous questions. Businesspeople should try to learn as much as they can about the finance and business law. However, sometimes consulting an expert is the only reasonable option to keep their business actions on the bright side of the law.