When a person sets out on an entrepreneurial venture, an important decision that the person needs to make is related to choosing the right legal entity for the new businesses. An earlier post discussed the various options that are available, namely, sole proprietorship, partnership, corporation and limited liability company (LLC).
Choosing the legal entity, however, is the just the first step in setting up a new business. The following are some important aspects that the entrepreneurs in Kentucky and the rest of the country need to address during the initial days after business set up.
Licensing, zoning, environment and taxes
Federal, state and local authorities require all business to comply with a large number of regulations, and ignoring compliance with those regulations can only be detrimental for the business. Some examples of those regulations would include:
- Obtaining a license from state and local authorities;
- Making sure that the new business conforms with zoning regulations;
- Taking into account federal, state and local tax responsibilities; and
- Ensuring that the business complies with environmental regulations.
Complying with these regulations requires immaculate research and it is something that business owners must spend considerable time and effort on to make sure that the prospects and interests of the business are not affected.
Employment regulations and compliances
In the event that you intend to employ people in your new business, an additional set of regulations need to be followed. Those regulations include, but are not limited to:
- Making periodic social security payments for all eligible employees;
- Verifying the employment eligibility of its workforce;
- Obtaining unemployment and workers’ compensation insurance;
- Ensuring that all health and safety regulations are followed;
- Making sure that the new business complies with the ADA; and
- Supporting the child support program through pay deductions.
As with licensing, zoning, environment and taxes, employment-related regulations and compliances demand serious attention from business owners and form a crucial success factor that contributes to the smooth running of the new business.
Other major considerations
In addition to complying with regulations, new business owners may also want to invest time and effort into some other aspects of the business such as:
- Conducting a thorough market research to understand the market demands;
- Marketing the new business as trustworthy product or service provider; and
- Taking necessary steps for protection of intellectual property.
While these aspects are not related to regulations or compliances, business owners need to realize that these are just as important for the growth and sustenance of the new business.
Addressing all of these needs
While all of this may appear fairly straightforward to a business owner, the fact is that dealing with local, state and federal agencies and making sure that the new business is in compliance with all regulations can be a daunting task. Therefore, it may be a wise decision to seek professional guidance. The support of professionals who have the experience of helping many entrepreneurs successfully set up and run their businesses can go a long way in making sure that the right actions are taken at the right time.