subject: Forming A Business Enterprise: The Legal Faqs [print this page] When it is about starting a new business there are several key decisions to be made by you regarding organization structure, financing, management and operation and many more. The most important aspect we generally ignore is securing the business establishments with legal regulations and permissions- The basic homework a business owner should concentrate on before even thinking to start an entity.
Believe it or not, without finding an attorney and free legal resources or documents your knowledge wont be complete. Here the specifications are about New Mexico Business law, though the primary level rules are same all where for a particular state in US.
Here we can run a brief session to take you through the basic functionalities of business law with much appreciated help from New Mexico Business Attorney. Finding answers of these enquiries would enable you take a wise decision.
Do you need a license or permit to open your business account?
It depends on the type of your business. Certain trades require special permissions or licenses. For example professional service like doctors, teachers, lawyers, accountants and commercial trades like alcohol manufacturers, fire arms producers need these.
Do you need a Taxpayer Identification number for your business?
Yes, most of the companies do this by filing with the IRS to receive an Employer Identification Number (EIN). This is to identify companies and their workforce. Those who cant afford EIN should have a social security number at least.
How do you register yourself for an online business?
This is basically registering the domain name i.e. selecting your website address. You need to find the domain name customized to your business and check whether it is already registered or not. Ask for some good referrals of legal directories.
Do you find sole proprietorship advantageous for your business?
With sole proprietorship you can avoid any special legal construct in your business and enjoy exclusive right to make business decisions. Since there is no corporate taxes, filing fees or negligible legal fees associated with it the process is inexpensive.
Do you find Limited Liability Partnership a good option?
Again it depends. The advantage is - Each partner is personally liable for his or her own negligence or of the employee under his/her supervision. But the rule doesnt comply while incurring debts.
How to form a corporation?
There are few simple steps:
1. First of all select your business name. Ensure you have passed the state rules and the words or phrases used in your business name dont defy State laws. Visit the secretary of your states website.
2. Start preparing and file the necessary paperwork with the Secretary of state in the State of incorporation. Pay your filing fees.
3. Choose the board of directors, directors, officers to form corporate governance. A business Attorney would guide you on that.
4. Issue stocks to the owners, set up bank accounts, bookkeeping system, collect licenses, permits from local Government offices; opt business insurance, purchase office equipments, hire employees.
With all these strategies you can run your business smoothly.
by: Ashley Smith
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