Thursday, June 20, 2019

Things you Need to Know before having a Business

by Mary Steamerson


You may be good at running a business, but you may not know some of its important aspects and attributes. It is very important to know all about your business, especially the things that are related to business law. To have a good and organized business the government tends to issue some rules for you to follow no matter which country you may live in. Those are the things that I want to discuss in this article.
This is very important because it will help you prevent violations on government policies. There are now a lot of businesses that had been closed because of a certain violation of the government’s business ordinances.

Starting a business is not a simple task. First you need to be awhere of all the rules that surround you and your business. Let’s get to know more about the business license. In most states if you are making a business it is mandatory that you need to have a license first before you can run your business. Always remember that if you are running your business without a license it means that you are making business illegally and that will subject you to a certain punishments  depending on the government. The procedures in applying for a business license may depend on your state. Do you need to pay before having a license? The answer is yes. In most places, the government requires payment for your license, but it is just minimal. Business license and permits may be categorized into two groups. These are the local, and the state license. In the local license, you may need to have a zoning compliance permit. You have to make sure that your business is located in an appropriate place. Location is one of the things you are to consider in having a business. Just like, for example, it is not appropriate to build a beerhouse or a disco bar right in front of a church. You may not be given an approval for this. Try looking for some other place that makes more sense. 

Next is the state business license. This entails businesses that are bigger and with larger revenues. This type of business may offer jobs like accountant, construction workers, barbers, private investigators, real estate agents and many more. You also may be required to have a special license when you are running a business, which involves firearms, gasoline, liquor, drugs and many more. Are you thinking of a name for your business? You may already have a name for your business, but before you can use that anywhere you need to have a business name permit. If the chosen name is approved then that will be considered as the legal name of your business. What are the advantages in having a legal business name? It will take you to advantage if your business name is already approved because you are now allowed to advertise your product on television, radio, posters, and billboards using the legal name of your business. You will also be protected from other businesses from using the name within your area or state. You may also be allowed to issue bank checks using the legal name. Having of bank account under the business name may also be allowed, unless the name is illegally made.

Aside from several licenses and permits for your business, you are also required to have a seller’s permit. What is this? This is a permit in which you are allowed to collect tax from your customer. The total tax collected will be paid to the state. Where will you get a seller’s permit? You can approach the tax commission or the franchise tax board for that concern. Make sure to list all the requirements to prevent errors.

Do you need to have an Employer Identification Number? Definitely yes, you need to have the EIN. It is just like your social security number. The purpose of this is to register your business to the government’s document. In this case, it will be easy for the government offices to identify your business through that number. Always remember that the Employer Identification Number is needed especially if your business has registered employees, if you own a corporation, or if your business involves trust from your consumers.