What About Legal Issues?
- hayportpat
- May 27, 2021
- 2 min read
Let me just start off this post with this...
This is the best way I can explain the topic for this week. You are going to have to put in a lot of time to research things for yourself because every business is different. Not only that, but every state and country is different as well. Which means, that what worked for me, might not work for you.
In my state and for my specific business, I did not need to do any other legal issues except for creating a ABN (assumed business name). You might be asking yourself, "Do I need one of those?" Again, it depends. If you are going to use your legal last name in the business name, then no. You will not need an ABN. If you have a business name or are creating one that does not have your legal name in it, then yes. You will need one and it will have to be registered through your state.
There is so much more that needs to be researched. Understand the taxes, licenses, registration, restrictions, and laws of your country or state, BEFORE you do anything with your business. Since every place is different, I advise you to go to your state website and look up the requirements for starting a business. Here are a few tips that I learned during my own research:
You need a business structure. There are more other than the ones I listed.
Sole Proprietorship: one person owns.
Partnerships: two or more people own.
LLC or Limited Liability Company: one or more people own.
Corporation: one or more people own.
Taxes: there are specific taxes that apply to different businesses and states. The general rule is if you are selling ANY kind of products or some services (not all are included), then you must fill out a tax form.
Licenses or Certifications: Some services require that you are educated and licensed to provide the service to consumers. There is a long list to the services this applies to, but ALL health related services are included. Anything that could potentially hurt or change another person's life, requires some sort of educational approval.
Limitations: Every business is going to be different, but you cannot just sell anything you want to. Each state has its own restrictions on the things you can sell and things that are illegal. Be aware of what is allowed in your state before selling anything.
These are just a few tips that I have learned, but there is so much more out there. Make sure you do the research and fill out all the paperwork you need to. If you don't, there can be issues later. Don't be surprised when you are asked to pay for things, these are legal documents and you will need to pay for them.
DON'T GIVE UP! I know it can seem tempting, especially when you are paying for something that could possibly fail. But you got to start somewhere and you have to take the leap of faith.
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