Starting your own business is a lot of work. But the legal requirements make up just a small part. Our business law experts help you with a few things to consider when you start your new business:
- Form Entity: You’ll need to choose which type of entity (company) will work best for you. An attorney can help you a lot at this stage. Then you’ll need to register your company with the secretary of state and have operating documents created for you. These operating documents describe how your company will work from a legal standpoint. For example, if you create a corporation, your lawyer will draft bylaws for you describing ownership of shares, your board of directors, etc.
- Obtain Federal Tax ID Number: All business types, other than a sole proprietor with no employees, will need a Federal Employer Identification Number (FEIN) from the IRS (this involves going to www.irs.gov and filing a Form SS-4).
- Obtain a State Tax Number: In Colorado, you’ll need to file forms with the Colorado Department of Revenue to obtain a Sales Tax License (if you sell products) and a Wage Withholding Account (if you have employees and withhold state income tax). For more information visit www.taxcolorado.com or call the Tax Assistance Hotline: 303-238-SERV (7378)
- Obtain Business Licenses, if necessary: In Colorado, you may not always need a business license. There is no general business license required. However, depending on the type of business you are starting, you may need a specific license. There are several resources for determining whether you need a business license: the Office of Economic Development and International Trade database at: http://www.colorado.gov/oed/industry-license/ or the Department of Regulatory Agencies at http://www.dora.state.co.us/Licensing.htm. You should also check with local city and county government authorities regarding any special business regulations, taxes and/or zoning regulations that will affect your business.
- Obtain Insurance Coverage
- Open a Company Bank Account
- Franchise Specific: Review franchise documents (Franchise Disclosure Documents and attachments, including Franchise Agreement) with an attorney. Negotiate and sign Franchise Agreement and related documents.
When Starting a New Business, Let a Business Law Expert Help
The business lawyers at Corporon & Katz, LLC have help hundreds of people with their business law needs and questions. Whether you want to start a business, consolidate a busienss, need help with fomrs and contracts, or just need some advice on a business related issue, our attorneys can help you. Give us a call today to see how we can help you, 303-790-4103.