These two terms go hand in hand when you reveal your company`s name to the world, but they don`t offer the same protection. In fact, a DBA has no protection – it`s just a name. A “doing business as” (DBA) is often referred to as a “trade name” or “assumed name”. Typically, you will need to register a DBA if your company uses a name other than the official legal name. Sole proprietorships and partnerships do not need a DTA if they are doing business on behalf of the owners. LLCs and companies do not need a DBA if they use the official company name. It is possible for several companies in the same state to use the same DBA name. Depending on your state and the nature of your business, you may need to file your DBA with the state or location. Therefore, all parties involved must understand the terms of your partnership and agree to them in advance.
Otherwise, there may be litigation, which always strains the company`s resources and from which most start-ups will not recover. It will also determine in advance the price at which part of the business can be sold, reducing stress and headaches for all parties. It`s important to protect your business assets when you start a new business. Your brand is one of the assets you want to officially own so it can`t be stolen from you. What is a trademark? A trademark is a word, name, symbol or device, or combination thereof, used in trade to identify and distinguish a company`s products. Without government trademark protection, your trademark may be stolen or your business may infringe another company`s trademark. Here are 10 essential legal documents you need to start a new business. As a business owner, it`s important that you understand your rights and obligations when it comes to protecting your customers. Get tips and advice on how to comply with consumer protection laws, including advertising and marketing, privacy and security, and more. The main reason many entrepreneurs choose to start their new business is to minimize their personal responsibilities.
Once the corporation is legally established, it exists as a separate entity that acts as a barrier between the business and the owner`s personal assets. Incorporation also increases the credibility of the company, allows owners to sell shares, and benefits from several tax benefits for companies. To register as a C corporation, you must file several legal documents. If you have employees (whether W-2 or independent contractors, depending on applicable law), you are required by law to receive workers` compensation. Workers` compensation protects employees who may be injured on the job and achieves the following results: Whether your business is large or small, whether it`s a partnership, limited liability partnership or corporation, having the right legal documents at the beginning can be a huge advantage. IP can be very complicated from a legal perspective, so it may be a good idea to consult an experienced IP lawyer who can help you through the process and provide you with the greatest protection. Technically, a business plan is not a “legal” document, nor is it necessary to start a business, but developing a business plan before attempting to secure financing, search for office space, or even choose a business name is highly recommended. When you create your plan at the beginning, you need to evaluate your goals and resources, develop a roadmap for success, and determine the feasibility of your business.
In the business plan, describe your target market, competitors and capital requirements, both for incorporation and for three to five years. Starting a small business is an incredibly exciting time in your life. This is your chance to be your own boss and show everyone what you have to offer. The sky is the limit and you have all the freedom in the world; But the opportunity doesn`t come without serious potential pitfalls. It`s a risky business, especially in the beginning. Like a house of cards, everything could fall apart, and one of the most common reasons for a business to disappear is legal issues. Many freelancers begin their journey as sole proprietors. For tax purposes, you typically work under your personal Social Security number, but you can apply for a tax identification number (TIN) for your business by filing an IRS SS-4 requesting an Employer Identification Number (EIN) as a TIN instead of using your personal Social Security number. The business is usually run under your official name. If you want to give the company another name, register a Doing Business As (DBA) to indicate the name you want to give your company. This process informs your state or local government of the name under which you operate your business.
DTA-specific registration rules vary from state to state. You can also apply for a government-registered trademark or trade name. Each state has additional tax rules when you start and operate a business. Learn about state-level requirements. If you use part of your home for business, you may be able to claim a home office tax deduction. Get federal contracts under the HUBZone program if you own a small business in an underrepresented urban or rural area. Or, as a disadvantaged small business, you may be eligible for assistance for government contracts under the 8(a) program. The SBA has several requirements to be eligible for each program. Deciding to start your own business as an independent professional means that you are responsible for the legal and financial well-being of your advice.
Remember, you are your business – if legal or financial issues arise that affect your business, they will also affect you directly. It`s important to protect your business from the risk of loss of liability, not only because many customers require you to have these insurances, but also to protect yourself and your future security. There are nine basic legal documents you need to have before starting a business. This article covers each of these documents separately and explains why they are important to the success of your business. If you or your partner get sick or injured, you may no longer be able to work or contribute to the business. Creating a mechanism for the remaining partners to buy from you quickly can be beneficial. Often, this is facilitated by purchasing insurance for each partner in your business. This insurance covers the financial costs of redemption on the part of this partner if this person becomes seriously ill or dies. Starting a new business is a challenge. Part of what makes things so complicated is all the legal implications that come with starting a business. As a business owner, you want to make sure that all of your legal bases are covered to avoid fines, prosecution, or in the worst case, even jail time. Legal incorporation of your business, entering into an agreement with your business partners, obtaining business licenses, and protecting your name, slogan, and other assets are all prerequisites for starting a successful business.
Read on to explore each of these steps in detail. If you`re interested in a Veteran-owned business, there are many services that can help: Learn more about corporate taxes, including energy tax incentives that can save you money.