Legal requirements for a business
The legal requirements for starting a business depend on the nature of business and the location. The procedures differ for a home based online business and a shop or restaurant located in a commercial area. There are different types of business registrations available and the business owner should choose the type most suitable for his or her business. The website of the states department of revenue will have the relevant information.
The basic requirements are:
- Business license / occupational license
- federal tax ID for IRS purposes,
- resalers license if you’re selling products, you get a Sales Tax Id.
A health permit is needed if you are selling food or certain businesses like massage parlors
If you have employees, you have to get a state tax id.
A DBA is required if you do not want to add your legal name to the business name.
It is advisable to consult a lawyer, to find out your liabilities and plan for them.