S04 Episode 06: Business Legalities

On this season of the podcast, we’ve been discussing what you need to know in order to transition from self-employment to business ownership. In today’s episode, we’re talking about the necessary legal components of running a business.One of the benefits of owning a business is the ability to separate the business entity from yourself personally. Separating business affairs from personal affairs allows you to mitigate the risk associated with operating a business.However, if you’re not tending to the legal aspects of the business, you won’t fully reap these benefits. If you move into business ownership without having all of the legal aspects set up and accounted for, you might be leaving yourself exposed.Business legalities can feel daunting and looming, but this information is necessary and very straightforward. The more you know about business legalities before jumping in, the more you can prepare for and expect on your journey to business ownership.Tasks that should be considered and completed at the onset of your business include:EIN - Employer Identification Number. This number operated as the social security number for your business. Registered Agent - An individual or entity designated by an active company to receive service of process notices, government correspondence, and compliance related documents on behalf of the company. Basically, someone who is responsible and available to accept formal documentation and correspondence. This can be yourself, or another entity.Business Permits and Licenses - Secure all of the necessary permits from the city, county, and/or state that apply to your work.Trademarks - Ensure that you’re not infringing on another trademark, then consider if it’s the right time for you to file for your own trademark or not.Business Bank Account and Accounting Software - Regardless of entity status, this is required and will continue to help you separate business and personal affairs.Contracts - Determine which contracts you need to have set up and in place to conduct your work legally and in a way that allows you to protect yourself.Taxes - A legal requirement for your business that will be made easier when you have a business bank account and accounting software set up.There are legal implications for not running your business in legal ways. You could face fines, penalties, lawsuits, or even the reality of your business having to close. None of these things are worth exposing ourselves to, and when you recognize the legal components of running a business you protect yourself. Your ability to keep serving your patients is reliant on sound legal practices.IRS EIN Application