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Before You Start Your Business...
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By:
Steven Samblis
Before you open your business, determine which of the numerous local, state and
federal regulations apply to you. Avoid the temptation to ignore regulatory
details. Doing so may save time in the short term, but could become an obstacle
as your business grows.
Below is a list of the most common requirements
that affect small businesses. The list is by no means exhaustive, however, as
regulations vary by industry. For example, if you are in the food service
business, you must comply with health department regulations. If you use
chemical solvents, you must meet environmental standards. Consult the list
below for a solid start to meeting your regulatory requirements, and then
carefully investigate the additional regulations that affect your industry.
Business Licenses
There are many types of licenses, and you will need one to operate
legally. If your business is located within the city limits, you must obtain a
license from the city. If you are outside the city limits, you must obtain a
license from the county. Investigate whether you need a business license through
your
state government web site.
Business Location
The three most important things in real estate are: location, location,
and location. Location is important in business too.
Certificate of Occupancy
If you are planning on occupying a new or used building for a new
business, you may have to apply for a Certificate of Occupancy from a city or
county zoning department. For more information contact the county or city office
in your area.
Business Organization
There are many forms of legal structure you may choose for your
business. The most common structures are Sole Proprietorships, General and
Limited Partnerships, C and S Corporations, and Limited Liability Companies.
Each legal structure offers organizational options, which are appropriate for
different personal situations, and which affect tax and liability issues. We
suggest you research each legal structure thoroughly, and consult a tax
accountant and/or attorney prior to making your decision.
Fictitious Business Name
Businesses that use a name other than the owner's must register the
fictitious name with the county as required by the Trade Name Registration Act.
Check for the appropriate name of the Trade Name Registration Act in your area.
This does not apply to corporations doing business under their corporate name or
to those practicing any profession under a partnership name.
Protecting Your Idea
If applicable to your business, you may want to apply for trademarks,
patents and your copyrights. Information regarding these applications is listed
below.
Trademarks
Trademarks are names or symbols used in any commerce that is subject
to regulation by state government or the U.S. Congress.
State Registration of a Trademark
Trademarks and service marks may be registered in a state for a term
of ten years. For more information about Applications for Registration of
Trademark or Service Mark in your state, contact your
state government .
Federal Registration of Trademark and
Patent
To register a trademark contact:
U.S. Department of Commerce
Trademark Office
2021 Jefferson Davis Highway
Arlington, Virginia 22202
(703) 305 8341 or (800) 786 9199
To register a patent, contact:
Asst. Commissioner for Trademarks, Patent Applications
Washington, D.C. 20231
(800) 786 9199
Also, visit the web site of the Patent
and Trademark Office.
Caution: Federally registered
trademarks may conflict with and supersede state registered business and
product names. Businesses are encouraged to check for conflicts with federal
trademarks.
Patents
Superintendent of Documents
P.O. Box 371954
Pittsburgh, Pennsylvania 15250 7954
(412) 512 1800
New and useful inventions can be protected by a
U.S. patent. Professional assistance from a patent attorney is strongly urged
because patent procedures are detailed and technical. A patent search is
performed to see if a patent currently exists on the same or nearly the same
device and, if not, to make proper application with the Patent Office.
Note: Only
attorneys and agents registered with the U.S. Patent Office may represent
inventors in related matters. The office has geographical and
alphabetical listings of the more than 11,000 registered agents. Only these
agents may perform patent searches in the patent office. Inventors or their
attorneys can make arrangements with one of those agents. U.S. patents are
issued by the Assistant Commissioner of Patents, Washington, D.C.
Additional information is provided in the
publication, General
Information Concerning Patents. This and other publications are
distributed through the U.S. Patent and Trademark Office.
Copyrights
U.S. Library of Congress
James Madison Memorial Building
Washington, D.C. 20559
(202) 707 9100 Order Line
(202) 707 3000 Information Line
Copyrights protect the thoughts and ideas of
authors, composers and artists. A copyright prevents illegal copying of
written matter, works of art or computer programs. In order to ensure
copyright protection, the copyright owner should always include notices on all
copies of the work.
Business Insurance
Like home insurance, business insurance protects the contents of your
business against fire, theft and other losses. Many small businesses must
protect themselves from lawsuits and other situations for which they might be
deemed liable. All businesses should research the advisability of appropriate
liability insurance. Contact your insurance agent or broker.
Sales Tax Number
In each state, there is a specified percent sales and use tax which
applies to the retail purchase, retail site, rental, storage, use or consumption
of tangible personal property and certain services. In other words, sales tax
must be collected on just about every tangible item sold.
A sales tax number is required for each business
before opening. The number, plus instructions for collection, reporting and
remitting the money to the state on a monthly basis, can be obtained through
your
state government.
Other Considerations
All businesses with employees are required to
comply with state and federal regulations regarding the protection of employees.
For information on state labor laws, work force availability, prevailing wages,
unemployment insurance, unionization, benefits packages and employment services,
contact your
state government.
Federal information may be obtained by contacting
the Department of Labor.
Unemployment Insurance Tax
Businesses are required by the state to pay unemployment insurance tax
if the company has one or more employees for 20 weeks in a calendar year, or it
has paid gross wages of $1,500 or more in a calendar year. The taxes are payable
at a rate of 2.7 percent on the first $8,500 in annual wages of an employee.
Unemployment insurance must be reported and returns made to the state. To learn
more, visit your
state government
Immigration Act
The Federal Immigration Reform and Control Act of 1986 requires all
employers to verify the employment eligibility of new employees. The Immigration
and Naturalization Service makes available a Handbook for Employers which
provides step-by-step instructions on how to complete the "Employer
Eligibility Verification" Form I-9, which is required by law when hiring a
new employee. To obtain a copy of the handbook and the form, and for additional
information, contact the U.S.
Citizenship and Immigration Services.
Health and Safety
The Federal Occupational Safety and Health Administration (OSHA)
outlines specific health and safety standards employers must meet for the
protection of employees. Many states have similar standards. For information,
contact OSHA.
Workers' Compensation
If a business employs three or more people, workers' compensation
insurance must be carried to provide protection to those injured in on-the-job
accidents. The State Board of Workers' Compensation aids people who need claim
assistance.
Minimum Wage
Virtually all business entities are subject to the federal minimum
wage, overtime and child labor laws. Information on these laws and other federal
laws may be obtained from the U.S.
Department of Labor's Wage and Hour Division .
Bar Coding
The Uniform Code Council, Inc. (not a government agency) assigns a
manufacturer's ID code for the purposes of bar coding. Many stores require bar
coding on the packaged products they sell. For additional information, contact
the Uniform
Code Council, Inc.
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