Is Your Business Legally Prepared?

It is imperative to have your business legally prepared. How you ask? You need to have a business license, a home occupation license, if running your business from home, a city or county license, (depending on what State you live) plus you need to register your business as fictious if you are not using your name as a business. For instance, If John Doe has a business name as John Doe's Grooming Parlor, a fictious name isn't necessary.

When opening a business in your residence, additional information is required. Some businesses require more than a city license to be fully licensed. Please check with your local city & state office for detailed information.

While it is my understanding that there are many businesses who are operating "under the table", so to speak, I highly advise against this practice. If you are just interested in selling a few things out of your home, don't worry about this section, as you should not have any form of tax liability for selling your own belongings. However, if you start a business to make some money, you need to look at the legal aspects of running a business. Eventually, those who operate under the table will be caught.

If you are running an internet business it is not as anonymous as some people may believe. Keep in mind, the government designed the Internet in the first place! They know how it works! Legalize it and you will sleep better at night!

It really is simple. This is not as complicated as you think, so don't worry! I know I fussed and fretted over this for a good while and when I actually went "legal", I kicked myself because the process was so simple.

Follow the steps below to get you started:

1. Determine the type of home business you want to start. Sole Proprietorship, Partnership or Corporation.

* A Sole Proprietorship is the least costly and least complicated way to set up your business. Remember that a Sole Proprietorship is totally dependent upon your ability to work and have good ideas for growth. There is no other person in the business to rely on.

* A Partnership happens when two or more entrepreneurs form a company. Legal fees for setting up such an arrangement are usually more costly than those required for a Sole Proprietorship and less costly than a Corporation. The up side of a Partnership is more capital for growth and more ideas for how to grow the business. The downside is getting rid of a bad partner.

* A Corporation is the most complicated and most costly of the three options. The ongoing accounting, legal, and tax reporting obligations of a Corporation are much more complicated than for the other two options. Corporations have boards, shareholders, and shared responsibility for the business. It is necessary to keep everyone informed of decisions, the company's financial status, and a host of other actions.

It is wise to seek the advise of an attorney in the beginning of your work-from-home situation in order to avoid serious problems later on. An attorney will guide your decision about what legal form your company should take.

2. If using a fictious name for the business, it must be registered first with the state. Call your city & state office to find out their phone number. Usually, you can do this online. Visit their site and fill out a fictious name form. A fee may or may not apply.

3. Is your home located in the city? Some states like Florida require a county license if your busines isn't located in the city. If not sure, contact your local jurisdiction office for licensinig information.

4. Complete the home occupation application and the business license application. You may download the forms from your city hall website. Call your city hall office to find out their website address and fees.

5. Forward your applications and fees to your city hall office either by mail or by visiting the office. They will usually accept cash, checks, debit cards, VISA, MasterCard or American Express credit cards. Again, check with your local city hall office.

If you visit in person with your applications and appropriate fees, you will get your business licenses the same day. However, if you do all of this by mail, you would need to wait at least 2 to 3 weeks to receive your licenses. Either way, you are on the right track.

Congratulations!!

Sonia Colon is owner of a successful online specialty giftstore "Jimson Products".

Visit: http://www.jimsonproducts.com for a wonderful display.

Get Your Own FREE Mall: http://www.telebay.com/shopping1/mall.html

---

Racing the Competition

What is the Big Race all about when it comes... Read More

Overcoming Your Biggest Competitor

Before you read any further in this article, I'd like... Read More

Batting Cages Business - Making Profits With The Swing Of A Bat

There is a Batting Cages Business for those people who... Read More

Small Business Credit Card Advantages

Obtaining a business credit card enables the small business owner... Read More

Collect that Debt - Your Business Depends on it

The efficiency of debt collection is the difference between a... Read More

Lawyers Everywhere Telling Regulators What Laws to Make

The Federal Trade Commission decided to sit down and revamp... Read More

Franchise Buyers Lying On Forms

The Federal Trade Commission which governs the franchise industry thru... Read More

Why the Over Regulation on the Franchising Model?

Franchising is the fastest way to build small businesses, provide... Read More

Four Reasons Why Small Businesses Succeed (or Fail)

The American system of business management has been admired and... Read More

Pressure Washing Heavy Equipment

One of the best ways to make money in the... Read More

Why are Reverse Mergers Often the Victims of Short Sellers?

There is a great deal of abuse going on in... Read More

Uncover Free Veins Of Gold By Prospecting Online Guru Newsletters (Part 1 of 2)

Incredible as it sounds, you have a goldmine of free... Read More

How to Effectively Design Your Business Image

In many industries, image is one of the last things... Read More

You Are Invited

Business card size works well for invitations to special events.What... Read More

Accounting Methods ? Cash and Accrual

When starting a business, you have to determine the method... Read More

Franchising Pros and Cons

Last week's question from Anthony R. on how to choose... Read More

How to Start an Office Support Service

Office support services can range from basic data entry to... Read More

Small Business Failure? Nuts!

Pardon my enthusiasm, but a large part of your small... Read More

Alliances: What works, what does not

Why Alliances FailWhen do you know an alliance is falling... Read More

Small Business Newsletter Dilemma: Which Day Do I Send?

If you're just ramping up your small business email newsletter,... Read More

Write An Effective Job Proposal

I am simply amazed at the problems some of my... Read More

Business Pain Defined

Every company has business pain, but the pain does not... Read More

Dispute Resolution of Territory for Mobile Franchised Companies

Franchisors of home based and mobile businesses need to carefully... Read More

13 Steps to Protect Yourself from Your Bank

The success of your business is critically dependent on how... Read More

Finance Your Small Business: So Much Money, So Little Time

$37.4 million funded from venture capital today. $86.4 million funded... Read More

Business Valuation is Critical

What is Business Valuation? The term business valuation is the... Read More

Small Business Marketing - Clarify Success

When you hear the word "success" does it bring on... Read More

Choosing A Business Thats Right For You

Q: I really want to start my own business, but... Read More

Operational Aspects on P and L Statements of Mobile Services Businesses

What kinds of things effect mobile service businesses P and... Read More

How to Protect Yourself & Your Business

As a business owner, you already know how important it... Read More

Franchise Territories for Mobile Businesses; Why Limitations

In franchising an individual desirous of their own business will... Read More

Mini-Blind Cleaning Business, Case Study

Sometimes the simple businesses are the ones, which make good... Read More

Should I Franchise or Not?

A reader of one of my online sessions asked should... Read More