If you’re looking to do business in California, then you must make adequate preparation so you can start on the right foot.
No doubt, starting a business isn’t a small decision. You have to face many challenges and make countless sacrifices. While at it, it’s paramount to set the right legal foundation for your business before operations start.
Business legal documentation isn’t limited to the online seller’s permit. Here are the four things you need to do to start that business;
Source Permits and Licenses
Starting a new business doesn’t mean you’ve automatically acquired the necessary permits and licenses. Without them, then you might find yourself in trouble with the authorities. A business license grants you the legal right to run your business.
Business permits range from health permit to zoning permit. These permits and licenses are usually inexpensive and will not only shield from unnecessary fines but also keep your business operating legally.
Obtain a Seller’s Permit
In California, for your business to start operating, you’re required to obtain an online seller’s permit. The seller’s permit is a requirement for all the sole proprietorships, partnerships, LLCs, and corporations selling goods that qualify for sales tax.
Failure to obtain or renew the seller’s permit online may attract a penalty of up to $5,000 or a jail term of not more than one year.
Insurance For Your Business
Today’s business world is faced with numerous risks of fire, third-party liabilities, and lawsuits that can see your business go under. There remains no better way to protect your business against losses arising from insurable risk than getting insurance.
General liability insurance will cover your business against third-party lawsuits that result from bodily injury, property damage, personal injuries, copyright infringement and false/misleading advertisements.
A Business Owners Policy (BOP) policy is a commercial insurance policy, and it combines all the major business risks and liabilities into a single package.
Write a Business Plan
By starting a business, you’ve made up your mind to put in the effort and face the numerous risks. During the initial stages, it’s not uncommon for business starters to throw an excessive amount of resources and time into it. You’ll find them allocating resources indiscriminately and without a particular plan.
To multiply the chances of ever succeeding, you need to get your personal business goals and the projected results down on paper. A business plan will keep you on track when it comes to managing your capital and force you to take actions that align with the business goals and mission statement.
You’ll agree that starting a business isn’t simple. Running one isn’t simple either. To increase the odds of succeeding, you need to lay a proper legal foundation. After that, start small and grow from there.