When starting a small business, you will have to follow a series of legal requirements. This is essential to ensure that you do not get off the wrong foot in the beginning itself. Of course, these regulations will require you to do a lot of paperwork and might even cost you a bit. However, if you wish to ensure the stability of your company on the long-term, then you will have to follow them. The following are the most important legal requirements that you will have to adhere to:
Figure out Your Business Structure
Before you register your company’s name, you need to decide on its structure and concept. It could be a sole proprietorship, a corporation or even a partnership. The concept for the company can influence your taxation and liabilities to a great extent. The best option in the category is a corporation. According to this concept, no individual will be held responsible for the organization’s debts or consequent financial failure. Moreover, even if a member of the organization is dismissed or replaced, it will not affect the business operations.
Register Your Business
When you run a business in any other name than your own, you will have to register it. This is essential since you will require proof of legal registration when opening a bank account or when applying for a loan. First, you will have to submit the name of the business. Once the name has been approved, you will be able to legally register your business.
Apply for a Company Extract
This is essential if you are planning to purchase a pre-existing company instead of building one of your own. The ASIC extract will enable you to verify the legitimacy of the company. ASIC will provide you with up-to-date and historical information about the company. The report will include the legal name of the company, information about the director, shareholder details, registered securities and other administration details. This information will offer you validation and thereby will enable you to ensure that the information you have obtained regarding the organization is legitimate.
Get Your License
Whether you are operating from home or from a working space, your company will require an authorized license in order to operate as a recognized business. You will have to contact your city hall to find out which permit suit your business. This will give you the permission to operate within that particular municipality. Remember that if you are shifting to another location, you will have to renew your license according to the requirements in that area.
Consider Employee Benefits
You will have to offer all self-employed individuals special employee benefits in accordance with the law. Some of the commonly offered special benefits include maternity benefits, parental benefits and sickness benefits. Registering for this initiative is essential to ensure that you meet the work place requirements of your employees. This procedure can take a long process time – approximately 12 months. Make sure to apply as soon as possible.
Failure to adhere to these regulations can lead to major financial and legal consequences. All legal requirements will have to be fulfilled in a highly punctual and accurate manner. Remember that you do not have to do this all by yourself. You can seek legal assistance to ensure that these tasks are completed in a highly efficient manner.