Important Legal Requirements for Starting a Small Business in Perth
Commencing a small business is a challenging task. A thorough research, adequate funding and proper planning is required to write a successful story as an entrepreneur. One of the most complicated aspects associated with start a new business in Perth is all the legal implications. As a novice entrepreneur, you need to ensure that you have covered all your legal formalities to avoid lawsuits, fines and other complications.
Luckily, there are various reliable legal resources for small business both online as well as offline. You can hire an experienced legal counsellor in Perth, Western Australia Who can help you complete your all legal work related to your new business.
Apart from this, the SBDC helps hundreds and thousands of Western Australian to commence and expand their businesses. The state government offers business advisory solutions, guides and tools to let you get started with your new venture without any legal hindrance. If you are new in the industry and want to know more about it, then have a look at this article.
Here are some important legal requirements that you need to fulfil while starting a new business in Perth:
Choose a Relevant Business Entity
Start by designating the proper business entity to easily enter into the business world. It is important to structure your new business as it affects your personal liability, increases your fundraising capacity and helps you build a unique brand image.
The available structures include sole proprietorship, C-corporation, general and limited partnership, limited liability and S-corporation companies.
After determining the structure for your business, you need to officially designate it via your secretary of state.
It is good to opt for sole proprietorships or partnerships as these structures need minimal paperwork.
Know Necessary Legal Permits and licenses for your Business
After determining the type and location of your small business, you might require specific business permits and licenses from your state or city. This may include building permits, local business licenses in Perth, health safety-related permits for home-based businesses, liquor permits, and much more. This can be a daunting and time-consuming process, and that’s why many small entrepreneurs look for well-established businesses for sale in Perth. It is because they already have license of running business operations. You just need to search and buy the most suitable business as per your requirement.
Don’t Skip Business Taxes
Whether you have a small business or a large one, a business owner is legally obligated to pay taxes. This includes self –employment taxes, income taxes and for some companies, sales taxes.
The best thing you can do is to hiring a reliable tax advisor or an accountant to ensure you are compliant with all tax legalities. If your budget is low, use the online Accounting software. It can also help you find out when to file taxes and what forms you need to submit.
Bookkeeping is Imperative
Believe it or not! But you need to record all business transactions if running a business.
Setting up proper filing and bookkeeping system for all financial transactions and documents not only organises your business but also help you track your expenses and profits. It can also save you from various legal troubles if done properly.
Make an Agreement in Writing
If you are starting a business with partners, then each person should know their rights and responsibilities related to the business. If you are forming a corporation, then you need a shareholder agreement and articles of incorporation.
In case, you are creating an LLC, you will require articles of organisation and an operating agreement. Check the authenticity of agreements with the assistance of hired legal counsellor
Avail your Employer Identification Number
Many small businesses in Perth need an Employer Identification Number (EIN) to open a corporate bank account and file your business tax returns.
Secure your Intellectual Property (IP)
Intellectual Property of any business includes copyrights, patents, trade secrets and trademarks. Make sure you file patents as soon as possible because the process can take more than five years.
Protecting IP of your business is great when it comes to raising funds. Getting exclusive rights to operate or reproduce and showcase your work will make things a bit easier.
Understand and Follow Security Laws
Raising funds to run a small business in Perth is not an easy thing. Founders as well as investors of partnership firms, LLCs and C-corporations are subject to state and federal security laws. Under this, you need to provide reliable and precise information about your business to enable a fair market. This will also protect you from trading fraud.
Starting a small business in Perth, Western Australia can be done successfully after reading these legal requirements. You need to do thorough research and planning to get the most out of your business investment.