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| Licenses and Permits | Ask advice from an Attorney
Even if you know which legal steps are required for being in business we strongly recommend to work with an attorney who make clear the details of your company's legal establishment, licenses, and so on .
The trade-offs involved in incorporation vs. partnership vs. other forms of business are significant. Even small problems at the early stages can turn into great problems later. Usually starting a company doesn't require major legal expenses except in special cases.
Licenses and Permits
It is impossible to generalize on licenses and permits, because some of these depend on your location, and some depend on peculiarities of your business. Many cities have zoning laws that define retail stores, office space, or industries location. But only few of these affect the small home-based business. Such businesses as daycare, hair care, food service, bars and nightclubs usually require special licenses. If you have any doubts, you should check with local sources.
Resale Licenses and Sales Taxes
Reseller businesses belong to a special category in states that have sales tax and state authorities manage this system. It means these businesses don't have to pay sales taxes on items they buy for resale. So, establishing your business you should ask state offices for your state as the required paperwork and the state offices that manage it are different in many states.
Taxpayer ID and Employer Numbers
The IRS and state tax authorities assign employer ID numbers (EIN). Only if you don't have employees and you haven't established a corporation, then your Social Security number is your federal taxpayer ID. In other cases you must have a federal EIN, which is assigned by the federal IRS. The state assigns a separate state number.
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