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Business law requires these steps for a new startup

On Behalf of | Feb 22, 2024 | Business Law

To bring the dream of launching your own company to fruition, you must cover a lot of bases. In addition to your overall vision of what you hope to add to your chosen niche, as well as what you hope to gain, you must also make sure that you comply with all laws or regulations that are relevant to your plan. If you are not well-versed in West Virginia business law issues, you’ll want to seek support as you seek information regarding the requirements for a business startup.  

Many people make the mistake of thinking they can avoid all the “legal hassle” of starting a business by not registering their companies at all. If you do not register your business name with the Secretary of State, you cannot legally do business under that name. You must use your personal name. As a new business owner, you’ll want to protect your interests, which is why it is always best to adhere to business laws when launching a startup.  

Business law requires you to choose a structure 

When you register a new business, you must choose a structure, such as sole proprietorship, limited liability company (LLC), partnership or corporation. Each of these business structures vary in complexity. The goal is to choose the structure that is most beneficial to your plan. While sole proprietorship is the simplest structure and typically the least expensive, it carries the heaviest risk for liability against your personal assets.  

Registering your business as a corporation provides the greatest personal asset protection. It is a myth that you must have many employees to qualify as a corporation. In fact, you can register under this structure with no employees at all.  

Steps to take after registering your new business 

As you prepare to launch a business startup in West Virginia, be sure to refer to the following list, which includes additional legal requirements and steps to take to build your company on a solid foundation:  

  • Register your business name. 
  • Obtain a federal tax identification number. 
  • Find out if your business needs a state tax ID as well. (Most do, in West Virginia.) 
  • Determine if your business needs any federal, state or local licenses or permits. 
  • Purchase insurance as required by law. 
  • If you’re hiring employees, make sure to properly classify them. 
  • Open a business bank account. 
  • Review federal, state and local labor laws, as well as any specific regulations that apply to your industry or region. 

Several of these requirements or steps may include numerous options.  For example, there are numerous ways to register a business name and multiple types of insurance available to you as a business owner, some required by law, others optional. You’ll want to conduct thorough research ahead of time so that you can make informed decisions and ensure that your new business can avoid business law problems.  

Rely on the knowledge and experience of others 

It’s helpful to seek guidance and support during the startup phases of a new business. You can speak with other West Virginia business owners in your industry, as well as connect with a support team who can help you lay the legal foundation for your company.