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title: What legal steps do I need to take before starting a small business?
description: Legal Faqs provides essential insights into the legal steps required to start a small business. Learn how to protect your business with our comprehensive guide on the legal requirements and regulations you need to know before launching your startup.
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 March 12, 2023

# What legal steps do I need to take before 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

Starting a small business comes with numerous legal responsibilities. Ensuring compliance with laws and regulations is essential in protecting your interests. Here are some key steps to consider before starting your business: \*\*1. Choosing a business structure\*\* Choosing your business structure will be your first legal task. You can establish a sole proprietorship, a partnership, a limited liability company (LLC), or a corporation. You must research and understand every legal entity's advantages and disadvantages to make an informed decision. \*\*2. Registering your business\*\* Depending on your location and business structure, you may need to register your business with the government. This process could include acquiring a business license, registering for taxes, and filing paperwork with the relevant state and federal agencies. \*\*3. Obtaining necessary permits and licenses\*\* Starting a particular business may require certain permits and licenses before operations commence. For instance, a food service business would need a permit from the health department. \*\*4. Securing funding\*\* Identifying the best sources of financing is necessary if you plan to obtain financing to start your business. Sources could include loans from lenders, crowdfunding campaigns, or personal investments from family and friends. \*\*5. Protecting your intellectual property\*\* If your business will create or sell intellectual property, such as patents, copyrights or trademarks, it is crucial to protect your rights. You can achieve this by filing applications with relevant government agencies and working with an attorney. \*\*6. Acquiring insurance\*\* Obtaining necessary insurance coverage is vital to ensure your business is safe from liability and other risks. This could cover general liability insurance, professional liability insurance, property insurance, and worker's compensation insurance. \*\*7. Aware of employment laws\*\* If you plan to hire employees, you need to be aware of employment laws and regulations applicable to your business. These include minimum wage laws, anti-discrimination laws, and overtime regulations. There may be additional steps that are specific to your business or industry, so it is best to consult a qualified professional or attorney to ensure that you are compliant with all applicable laws and regulations.

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