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Bankruptcy is a situation, wherein an individual is termed as unable to discharge all the debts. When a person or a company is not able to pay off its creditors, it has an obligation to file a bankruptcy suit. In fact, a bankruptcy suit is a When you work with an attorney, you will have no problem reducing the risks associated with getting your case in front of a judge and jury, or other formal court, when you need to. However, every case is different. It is important to work wi
It's important that your business be on the "up-and-up"right from the start. Taking care of the legal issuesassociated with starting a new business will keep you out of hot water in the future. Here are the first steps you need to take:1. Register Your Business NameYour business name must be registered if it is somethingother than your full legal name. This is a way of informingthe public that you will be doing business as (DBA) anassumed, or "fictitious" name. Generally, a search is done to ensure your name is not already in use, and anapplication is submitted to make it official. Some statesrequire a notice be published in the local newspaper. Thedetails of registering varies from state to state, so checkwith your state office or county clerk for specifics.2. License Your BusinessLicensing of your business depends on the type of businessyou plan to start. Licensing occurs on the state and/orlocal level. Federal licensing is only necessary forbusinesses who engage in specific, controlled activities(things such as making firearms, alcohol, tobacco, etc.).Many cities, but not all, require a general businesslicense, plus there may be a license required for yourparticular business type. You should contact your state and city clerk offices to find out what licenses you need.3. Report Income TaxYou are responsible for filing and paying income taxes on your business. Assuming your business is a soleproprietorship, you will pay income tax on your netprofits. You report your income tax using Form 1040 at taxtime, with the additional requirement of filing Schedule Cor C-EZ: Profit or Loss From Business. You can get IRSPublication 334 (Tax Guide for Small Business) for moreinformation. Visit the IRS online at www.irs.ustreas.gov/ for publications and detailed filing requirements.4. Pay Estimated TaxesIf you expect to owe more than $1,000 in federal taxes,you need to make estimated payments quarterly. This mayseem like a burden at first, but it actually protects youfrom having a big payment due at tax time. You can learnmore about this from IRS Publication 505: Estimated TaxPayments.5. Pay Self-Employment TaxYou must pay self-employment tax on income over $400 usingSchedule SE. Why? Because you are required to pay your fairshare into Social Security and Medicare. Oh joy!6. Get a State Sales Tax Certificate Contact your state treasury office for information onobtaining a sales tax certificate. This certificateobligates you to pay applicable sales tax on goods yousell. If your product is to be sold wholesale, or if youare buying materials wholesale, inquire about a resalecertificate to avoid paying taxes twice.7. Obey Zoning RegulationsBe sure to check with your city and county offices aboutzoning regulations for your business location. You don'twant to be in the position of having to shut down laterbecause of zoning violations.8. Get Free AdviceYour local Small Business Administration office is a good place to learn more about the nuts and bolts of legally operating a small business in your area. This office can answer many, if not all of your questions about doing business locally. Another important resource is the Service Corps of Retired Executives (SCORE) at www.score.org/. This organization provides personalized and free counseling to assist you in making the right decisions for your business.Attending to the above steps will put your business on afirm footing. For the average home business, doing thesethings is enough to let you charge full speed ahead.However, no two businesses are alike, and it's not a badidea to consult with a lawyer and accountant for additionalinformation pertaining to your type of business. Doing somay prove valuable for you, both before startup and lateron as your business becomes more complex. Article Tags: Small Business
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