New Business? Consider Speaking with a Lawyer

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Starting a business can be an exciting and rewarding enterprise. It may mean the beginning of a new phase in life, in which business owners are now their own boss instead of investing their time as an employee. As exciting as that is, it also opens the door to many new legal challenges and considerations, such as laws pertaining to small businesses governed by the state and federal government. Before opening the business doors business administrators should consider a few legal points that should be handled from the beginning with a Central Maryland business lawyer. These include how the business will be organized, the business name, filing for Employer Identification Numbers, and legally establishing the business. Business owners or lawyers can file paperwork establishing a new business. Business laws are established through each state, and may vary slightly from state to state. Each state has an office business division where business forms, and articles of incorporation can be filed legally establishing the new business. Even before filing paperwork, however, consider how the business will be organized. Some businesses operate as a sole proprietor, while others operate as a partnership, limited liability company, S or C corporation. It's important to know the benefits and shortcomings of each to properly organize the business. Business owners are required to select the business name, and type of business they are organizing in both the business papers filed with the state, and when applying for EIN numbers through the Internal Revenue Service. Once these papers have been filed changing the business status isn't always as easy as establishing one, so business owners should make sure they understand the differences. There are also certain conditions under which businesses are required to apply for an EIN, and others in which they are not. Generally if the business plans to hire employees or contractors they need an EIN. There may also be other instances in the course of doing business in which EIN numbers are useful for business identification so carefully consider the benefits before deciding against one. After establishing an EIN, however, business owners will be required to file monthly sales tax vouchers with the state. Doing so will also benefit new businesses in that it establishes a monthly report of profit and loss. Following these basic laws will help businesses operate smoothly, successfully and efficiently.