Setting up a business is harder than it seems. Aside from the financial, marketing, and operational aspects, one has to deal with the legal and regulatory aspects of setting it up. Businesses are regulated at the county, city, state, and federal level.
The first thing to do when you set up a business is choose the legal structure that you want for it. This is very important, as this would affect the way your business works as a whole. The three most common types of business structures are sole proprietorship, general partnership, and corporation.
You could choose to be a sole proprietor. In this case, the owner and business would be one and the same. All the income of the business accrues to the owner. The owner will also be liable for all the expenses and debts the business incurs. This is the simplest form of a business organization to maintain.
You could also choose to start a general partnership. In a general partnership, there are two or more owners who contribute capital. The capital could be in the form of money, property, or labor. All owners are jointly and severally liable for the business’ debt and each has a proportionate share in the profits.
Lastly, you could opt to form a corporation. This is the most complicated type of business organization. A corporation is a separate and distinct judicial entity from its owners, called shareholders. Forming a corporation entails the tedious process of coming up with the Articles of Incorporation and the Corporation By-laws. For this task, it is best to hire a small business law firm to help you.
After you have chosen, you would need to apply for different licenses and permits depending on the type of business and where your business is located.
In the State of Indiana, not all businesses are required to have a license, although most businesses require one or more licenses to operate. While Indiana does not have one general and a comprehensive state-issued license, businesses are required to get several other licenses, permits, certifications, and other permissions from various state agencies. Some licenses and permits that you might need to get depending on the type of small business you plan to establish are:
Coupled with earning money is the obligation to pay taxes. Here are some of the taxes that may be imposed under Indiana’s small business tax laws:
These are just some of the possible taxes that may be imposed by the state of Indiana. There may be other taxes from the federal government that one must also pay. Because paying taxes is an obligation, persons and businesses who fail to do so may be charged under the law for tax evasion.
The process of setting up a business is a complex matter that is coupled with a lot of legal technicalities and implications, from choosing the legal structure of your business to executing it. As a small business law firm, the Law Office of Maxine E. King can help you navigate the technicalities and rigors of dealing with Articles of Incorporation, licenses, permits, and even taxes. Should there be trouble and you need a lawyer to represent you, Maxine E. King is a seasoned business litigation attorney who can effectively advocate your case. If you are thinking of opening a small business in Indiana, get in touch with the Law Office of Maxine E. King for a consultation on the ins and outs of business law!
Want to get in touch? I'd love to hear from you. Here's how you can reach me...