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Keep It Legal Need to know how to keep your business on the up and up? Check out these links.

By Bonnie Drew

Opinions expressed by Entrepreneur contributors are their own.

(YoungBiz.com)- Getting ready to start a business? It's always a good idea toconsult a lawyer or a certified public accountant about the legalstructure of your business and any legal steps you need totake.

Regulations about legal requirements for small businesses varygreatly from state to state, and even city to city. If youaren't sure what's required where you live, here is achecklist for researching the regulations that apply to you.

  • Small-business advice: Contact your local Small BusinessAdministration office or Small Business Development Center--theyspecialize in helping people start businesses. Ask for handouts,brochures and advice on the legal requirements for starting yourbusiness.
  • Business structure: In most circumstances, someone under18 cannot sign legal documents or contracts. You may need to have aparent, guardian or mentor as a business partner or associate sothis person can sign legal papers for you. A lawyer can explainyour options and help you structure an ownership agreement thatwill fit your needs. For more information, read "Choose Your BusinessStructure."
  • Business name registration: If you plan to use a namefor your business other than your full given birth name, moststates require that you register your "fictitious" name.This procedure is also known as filing a "doing businessas" (DBA) form, or getting a certificate of assumed name. Thefees for this registration are usually $25 to $75. In some states,you will also be required to run a public notice in your localnewspaper announcing your new business name. In states where thereis no name registration statute, a trademark is the best way toprotect your business name. For more about registering a businessname, read "Filing a DBA" on YoungBiz.com.
  • Zoning laws: Check with your city hall planning orzoning departments for zoning laws and local ordinances that mightaffect your business. You will find the phone numbers in thegovernment and community services pages in your telephonedirectory. Many city administrations also have Web sites where youcan find much of the information you need.
  • Local licenses or permits: Some counties and/or citiesrequire licenses or permits in order to open a business. To getthis license, it is sometimes necessary to satisfy variousregulations as well as pay a fee. If required, this license isusually issued through your city office's licensedivision.
  • Health department permits: If your business prepares andsells food, you will need a county health permit. Your facilitieswill have to pass inspection before you can receive this permit.Depending on the size of your operation, you will also have tomaintain certain standards of health and sanitation in order topass random inspections throughout the year.
  • Occupational licenses: Most states have laws thatrequire people in businesses that provide personal care (e.g.barbers, cosmetologists, medical caregivers) to be state-licensed.To qualify for this type of license, you must usually have acertain level of professional training, pass one or more exams, andpay a fee. To find out whether your business is considered astate-regulated profession, go to your state's Web site andcontact the agency that oversees licensing.
  • Sign permits: If you plan to put up signs or distributefliers in your neighborhood, you will need to contact your localhomeowners' association to see whether you need a permit. Ifyou are opening a retail business, check the local sign ordinancesbefore you have signs made. Most cities have regulations thatrestrict the size and location of signs.
  • Local sales tax permit: Visit your nearest state taxassessor's office and find out whether your business isrequired to collect sales tax. The sales tax permit itself usuallycosts no more than $50. Your sales tax permit also qualifies you tobe exempt from paying sales tax on merchandise that you buy toresell in your business. Remember that every state has differentsales tax regulations, and most states also allow cities andcounties to charge additional sales taxes. For more informationabout sales tax rates in your area, contact The Sales TaxClearinghouse.
  • Federal and state tax ID numbers: If you do not haveemployees, you will probably not need a tax ID number. However, itis your responsibility to find out for sure. Look for "Lawsand Regulations" under U.S. Business Advisor or go directly to theInternal RevenueService.
  • Income taxes: Whether or not you actually make enoughprofit on your business to owe income tax, it is yourresponsibility to keep accurate records so that you can file incometax reports at the end of each year. In addition to federal incometax, many states have their own state income tax. If you are unsureabout how to handle your taxes, you should consult with a taxattorney, a certified public accountant (CPA) or a tax preparationexpert who can help you set up a good record-keeping system andfile your tax reports. The IRS Web site offers downloadable tax forms as well asdetailed instructions on income tax regulations.

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