18 – Licenses & Legal Considerations
While the business structure information might look technical and boring, it’s an important part of setting up your business. However, it’s not the only legal issue you need to consider.
Incorporation (or Organization) & Other Matters
Depending on the business structure you choose, you may need to “incorporate” or “organize.” This entails filing paperwork with your state and paying a fee become a legal organization. Depending on your state and your business structure, the incorporation / organization process may include:
- Registering your business name
- Creating and filing articles of incorporation or organization
- Creating organization bylaws
- Drafting an operating or partnership agreement
- Getting an Employer Identification Number (EIN) from the IRS
Licenses & Permits
The government rarely misses an opportunity to collect money, this time in the form of permits and fees. Depending on the type of business you’re starting, certain licenses and permits may be required. As requirements differ by where you live, make sure to think about what is needed:
- On the local level (city and county)
- On the state level
- On the national level
- For your industry (e.g. selling food requires a lot of licenses and permits)
Complete the assignment in this lesson before moving on. (You can either complete the assignment digitally on the fillable PDF or you can print the assignment, complete it by hand, scan or take a photo of it and upload it below.)