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title: What legal requirements should I be aware of when starting a small business?
description: Discover the essential legal requirements you need to consider when launching your small business with Legal Faqs. Gain insights on necessary permits, licenses, contracts, and more to ensure a successful start. Learn more on our blog.
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 March 12, 2023

# What legal requirements should I be aware of when starting a small business?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

As a lawyer, I can provide you with legal advice on the legal requirements you should be aware of when starting a small business. Here are some key legal considerations:

1. Business formation: You must decide on the legal structure of your business, which can affect the liability of the owners, tax liability, and funding opportunities. Some common legal structures for small businesses include sole proprietorship, partnership, limited liability company (LLC), and corporation.
2. Business permits and licenses: Depending on the type of business you are starting and its location, you may need to obtain permits and licenses from federal, state, or local authorities. Failure to do so may result in legal penalties or fines.
3. Tax obligations: As a business owner, you will have tax obligations to federal, state, and local governments. You must register for a federal tax ID number, obtain necessary state and local permits, and collect and pay sales and income taxes.
4. Employment laws: If you plan to hire employees, you must comply with federal and state employment laws, such as minimum wage laws, overtime laws, and anti-discrimination laws. You will also need to obtain workers' compensation insurance.
5. Intellectual property: If your business is based on a unique product or service, you may need to protect your intellectual property through trademarks, copyrights, or patents.
6. Contracts: You may need to draft and negotiate contracts with vendors, suppliers, and customers. A well-drafted contract can help protect your business from legal disputes.
7. Regulatory compliance: Depending on your business, you may need to comply with environmental regulations, safety regulations, or other industry-specific regulations.

It is important to seek the advice of a qualified attorney to ensure compliance with all applicable laws and regulations when starting a small business. An attorney can assist with drafting legal documents and provide guidance on specific legal issues that may arise.

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