By Akpeli Othuke Andrew
In starting up a home business, all legalities should be properly handled as pleading ignorance will not suffice as an excuse for failing to comply with business regulations, zoning or other legal requirements. It also advisable to choose a business attorney for onward consultations.
Choose a legal Form or Structure
Choose a legal form or structure for your business. Decide whether you are to operate a sole proprietorship, a partnership, a limited liability company or a public liability company. How much legalities you want to be involved in are to be carefully considered before choosing from the list above. Decide how to source for your employees, your business goals, tax issues and other aspects.
Choose and Legalize your Business Name
Your business name is your identity and also a very crucial marketing tool as part of your brand. You can decide to include your own name in your business. For example “Andrew’s Web Design and Development.” It should show clearly the products or services you are offering. Endeavour to register your business name with the Corporate Affairs Commissions to publicize it to ensure that it is not in use.
If your business is to be conducted on state-, nation-, or worldwide levels, get a trademark or a business logo to protect your name. Trademark search can be conducted at the relevant Corporate Affairs Commissions in your country or hire an intellectual property attorney to do that for you.
Check Your Contracts
If your home-based business is in the same industry with your former employer, check for non-compete contracts which you may have signed with your former employer. Draw up a good business liabilities and disclaimers for your legal protection. Get a lawyer’s advice on contracts you should have whether as an independent contractor or to subcontract work out.
Check Your Regulations
Ensure that your home-based business is in conformity with your local authority’s zoning and permit regulations. These regulations varies from state to state and country to country. Also obtain licenses required by your home-based business from state or federal agencies.
Stay Legal
To prevent possible fines, penalties or possibly being forced to shut down your business, legal matters pertaining your business such as advertising guidelines, labeling requirements regulated by the Federal Government and complying with labour laws if you have employees should be properly checked.
Feel free to add your comments on how to take care of legalities in setting up a home-based business in the box below.
