Starting a new business can be overwhelming or terrifying as you try to figure out what you need to do to protect yourself, your assets, and your business. To add to the stress, you need to ensure the business is starting to grow and your business plan is being followed. So, the question then, is what do you need to do to ensure your business is meeting the legal requirements?

Register Your Business

There are a few different types of business structures which you need to choose from. These include corporation, limited liability company, partnership, and sole proprietor. This will dictate the type of paperwork you need to do to register the business with your state secretary’s office.

In addition, you will need to check with the same office to see if the state requires you to carry a state business license. Some states do not require it, but the type of business you are starting may require some state regulation.

Local and Federal Business Licenses

Some counties or localities will require you to obtain a license to operate within the area. The county clerk’s office will give you guidance and help you pass this hurdle, just don’t miss this step as it will be key in you legally running your business in your county.

You may also want to look at the need for a federal business license. This is not common and will generally only apply to you if you are going to sell alcohol, firearms, tobacco, are manufacturing prescription drugs or providing investment advice.

Federal Employer ID and Tax Permits

The IRS will require that you have an EIN for tax purposes. This is especially true if you are hiring employees. You will need to complete the SS-4 Form and submit it to the IRS. If you sale Taxable products you will need to obtain sales and use tax permit. This varies by state, so check with the Department of Revenue for your specific state’s requirements.

Business Permits

There are several other permits you will need to consider as well. These will be required based on the type of business you are running. This range from zoning permits for home-based businesses to seller’s permits for reselling wholesale merchandise or a health permit for food preparation.

In Closing

Each of these rules is going to require additional research on your part. It is advisable that you get some help from someone that is familiar with what you are looking to do so you make sure everything is legally in line. Generally, a business lawyer is your best bet. While you can do this on your own, it may be more beneficial to work with someone that has a high level of expertise in the field, if for no other reason to ensure that you are not missing anything as you get ready to open your doors.

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For example, if an employer signs an employment contract for a specified period of years, he or she loses the mandates to sue their employer if they get fired or discriminated at their workplace.

Business Practices

Most employers incorporate employment arbitration agreement regarding the contract. This means that employees who sign for such a deal cannot impose a legal action against their employers in a court of law. In such a case, disputes arising in the workplace get settled through arbitration, which is an alternative to filing a lawsuit in the court.

New Laws

As a way of mitigating employees’ oppression by the harsh arbitration agreements, the legislature in California has enacted two new statutes which have favored employee’s arbitration protection against workplace disputes. One of the laws, SB 1007, offers either of the arbitration parties with the right to hire a certified reporter whose role is to officially transcribe all the proceedings, depositions, or hearings, for record keeping.

Transcription of testimonies and hearing reports can get essential for employers because it could get more comfortable to refer or cite from a stored record of previous proceedings.

The second statute that the California legislature passed was referred to as SB 1241. This enactment held that provisions by the arbitration cannot allow employees in the state of California to arbitrate their complaints in foreign states or enable arbitrators to utilize laws from other states in the U.S.

Apparently, such provisions would have gotten regarded as unconscionable even in the previous law. This regard is because the courts primarily insist that employees ought not to be burdened with expenses or other consequences in arbitration, which surpass what a court action would require them to bear.

The Pros of Workplace Arbitration Protection

• Arbitration helps to keep off harsh and emotion-fueled verdict by the jury.
• Procedures of arbitration are quite straightforward.
• Arbitration offers more privacy with no media glare, as compared to a public court trial.
• Settling of a case is cheaper and quick in arbitration than in a court of law.
• There are limited chances of appeal by the loser.

     The Cons

• The law remains unsettled on the enforceability of arbitration agreements.
• The costs of an arbitrator and forum are high.
• It becomes difficult to do away with cases on summary judgment or dismissal.

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