Business Law: Everything New Entrepreneurs Should Know

The ups and downs of starting a new business can be both exciting and challenging. Most entrepreneurs are experts in their fields, but aren't specialists in the business of building a business. One of the essential steps for any new entrepreneur is to get familiar with the following areas of small business law. So whether you go on to get a LLM degree online, or just review the tips here, you should know what you’re getting into first off.

Legal Structure and Taxation
The IRS wants to know where a business operates and what it does. Before establishing your business, it is important to choose the legal structure that works best not only for your business startup, but for the future as your business grows. Options for legal structure are Sole Proprietor, Partnership, Corporation, or an LLC (Limited Liability Corporation). Your legal structure will determine how you declare and pay your taxes and other regulations for running your business. Check with your tax preparer or www.irs.gov for more information. 

Land Use
The next step in setting up your business will be determining whether your business is permitted at your desired location. Every city will have zoning restrictions when it comes to setting up a business in a home, strip mall, or office building. Before you open your doors for business, be sure to check with your city's Zoning or Land-Use office. 

Building and Fire Codes
Once you've established your location is zoned for business, be sure to check on building and fire codes. Many cities will subject your business to an inspection by the fire department to ensure fire codes are met. Local governments can impose changes to your building structure to accommodate the number of employees, as well as fire codes. Make sure you check with your local city government before setting up shop. 

Product Specific Laws
Many industries are subject to licensing and permits. For instance, businesses producing and selling food require a health permit, while several other industries require a license to operate. Be sure to check on the laws pertaining to your specific industry. A great place to keep up-to-date on your specific industry is a trade association for your industry. 

For every entrepreneur, there are a variety of factors to keep in mind while running your business. Tackling the laws of legal structure, land-use, building codes, and industry-specific law can help you start your business on the right foot. Don’t forget to get started as early as possible.