Creating an LLC or Corporation
While gaining the support of a legal professional, or team thereof, is an important step in establishing your business, it’s not the only financial obligation you can expect from establishing the legality of your business. Another legal requirement that’s going to cost you is establishing your business as an LLC or corporation.
There are a variety of options available to entrepreneurs when deciding how to establish your business entity. Each of which has various costs associated with them. For more on the pros and cons of each type of business entity, check out our blog post.
Each type of business formation has associated costs. It’s your decision whether to invest in a potentially more expensive option and reap the benefits that come with it, or pursue a less expensive option but have to deal with the potential disadvantages associated.
Registering your business name
Once you’ve decided on your business’s structure, you’ll want to register its name as well. No two businesses can have the same legal name so it’s important that you timely register a unique name, not in use by another business, as well as pay all associated costs and fees required by your local, state, or federal government.
Obtain permits and licenses
Depending on the type of business you have, you may need to obtain further permits and licenses. Some common permits and licenses that businesses may need include those required to sell liquor or firearms or complete actions include mining, drilling, or transporting. The Small Business Administration provides a full list of common business licenses that may be required.
Obtain Business Insurance
Another initial legal requirement that will play a role in the finances of a small business is the need for business insurance. There is a wide variety of different types of business insurance that apply in various scenarios. While business insurance is highly recommended to protect your property, employees, intellectual property, and more, it is not technically a legal requirement demanded by all business owners.
In establishing a business, you can expect to experience a wide variety of necessary expenses. Startup costs may be allocated to hiring and onboarding staff, investing in equipment, materials, and inventory, and buying or renting property to utilize for business operations. One important financial investment not to forget, however, is the necessary finances associated with ensuring the legalities of your business operations. For more information and support from our team of legal experts, contact @VirtualCounsel today!