Common Questions of New Business Owners

Beginning a new business can be a daunting task for anyone. Often times there are so many questions about legal issues, accounting topics, and the proper business license that a lot of people put their plans on hold for fear of doing something improper. To make sure you are following the letter of the law you should contact a Boston law firm to go over the specifics of your business.

Question: Who do I contact to acquire a business license?

Answer: Most of the time the local city government office will have the authority to issue a business license. Some places charge a fee based on the city, county and state. Each location is different.

Q: What type of business license is necessary?

A: This is a short list of the more common types of business licenses.

* Local fire station permit

* Permit to display signs

* Approval from local health department

* DBA listing

Q: What laws should be taken into consideration?

A: A new business should first determine what type of licenses are needed I the area. Next, the zoning registrations should be reviewed to ensure compliance. In addition, specific types of businesses have certain rules and requirements that must be met. For instance, a local diner would have health food laws that do not apply to a pet grooming service.

Q: Is it necessary to register the business name if is the same as my personal name?

A: Many times this step is not required. However, as previously mentioned, each state and each jurisdiction has slightly different rules. Contacting one of the local law firms in Boston and speaking to an experienced counselor could save you time and grief in setting up your operations in the proper manner.

Q: Why should I consider setting up my company as a Limited Liability Corporation?

A: A limited liability corporation (LLC) can be a good structure for many small business owners. The ease of management along with advantages in tax situations are combined with the reduced liability nature of a corporation. The LLC can choose between paying taxes in a manner identical to a C corporation or

Q: In terms of employment, how are the partners of a company classified?

A: The IRS looks at partners as self employed individuals. That means that when a partner receives their share of the profits or losses from the company, they are receiving income just like any other self employed person.