Residents and new businesses in Pittsburgh and other nearby areas of Pennsylvania should be aware of legal requirements that come with starting a new business. You want to be sure that you are ready to begin a growing business.
According to Nerdwallet, you do not want surprise issues popping up as you begin your business. Avoiding fines, lawsuits and, possibly, jail time should be foremost in your mind.
Choose the proper business entity
Affecting your liability, choosing the entity type is important. Is your business a sole proprietorship, general and limited partnership, C-corporation, S-corporation or a limited liability company (LLC)?
Find out which licenses, registrations and permits you’ll need
You may need permits even for home-based businesses. The country, state, county or city may have registration requirements.
Pay the proper business taxes
In addition to doing proper bookkeeping, you will have the requirement of paying the proper taxes. They might include income tax, self-employment taxes, and for some businesses, sales tax.
Set a founders agreement and founders vesting
Understanding business law can help you with this agreement, when there are multiple business owners. Articles of organization and other documents may be necessary. Protect your business with a vesting schedule as well.
Get your EIN
Your business tax return will need an employer identification number (EIN). A business bank account may also have that requirement.
Make sure you comply with securities law
Founders and investors of C-corporations, LLCs and partnerships may be subject to federal and state security laws. You must provide information that will ensure a fair market.
There are additional considerations when beginning a business that may require an attorney. Make sure that your business has the legal aspects covered and begin your venture free from headaches. In fact, make a checklist and follow it.