Poland Business

What You Should Do To Make A Business Legal

A business is a local phenominon. Yes, with the internet it is very easy to sell internationally, but your business runs from some fixed location. And it is your choice of that fixed location that determines for you what you must do to make your business legal.

The information in this page, though directed generally at a business in the United States, applies everywhere.

Your first step is to check what your local authorities require for the type business you intend to start. A food business, a business on eBay and an offline book business will all have different requirements.

But generally speaking, you are going to have to register the business at your town hall or equivalent. When you talk with the folks there, they will give you the specific requirements that you must meet for your specific address and business type.

As you register, you might be required to file a trade name certificate. ( Information is at How To File A DBA)

And a note about your company name. Think it through. Some tips are at Choosing A Company Name

You will need a tax number of some form. You may need a local tax number as well as a state tax. And for those of you in the EU, a VAT number for your country is necessary. If you are going to sell cross borders, you also need a EU VAT number. (It is different than and in addition to your country VAT number.)

If you are just starting, just operating under a trade name is sufficient. But it you form some form of corporation, you will need a Federal Tax ID number.

If you are not sure if you want a corporation or not, there is some good information at My Corporation.

And a simple but important reminder. KEEP RECORDS!

Get a notebook or pad and write down everything you do related to your business. Keep it as a business diary.

Keep every receipt to track every expense. Buy some petty cash slips and write down EVERY expense.

These records show that you are really in business and are important for your tax filings.

All the filings are just form.

The records are substance. And the substance the proof. They keep you legal.