February`s Pitfall Prevention Tip The Legal Stuff

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February`s Pitfall Prevention Tip

LEGAL STUFF

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Legal Stuff has to be done, and it has to to be done right from the beginning. Avoiding these tasks can land you in hot water and cost you unnecessary expenses, let alone delay your business from opening its doors.

You will find yourself asking “How do I…?” a lot when you’re starting your first restaurant. Questions are good things; it shows that you want to find out how to do things, right or the order to do them in. Never feel sorry for asking questions it’s how you LEARN!

 

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Becoming a business owner doesn’t mean you know everything!

When it comes to the legal aspect of starting and opening a business, it’s not as difficult as you might think. Many first time entrepreneurs, feel intimidated by all the legal tasks involved in starting a business. It turns out, the process of starting a business isn’t that complicated.

The problems arise when you avoid the legal tasks or delay getting them done.



 

So let’s get them started so you can open your restaurant, on the right legal foot…

businessman holding gavel and law books, on white

Let The Process Begin
Your Businesses Name

“If you’re waiting until you come up with the perfect name, you’re also waiting to start making money. Instead, at least for now, forget branding and unique selling propositions and all the business identity stuff. And don’t worry about finding the exact URL or website design or promotional literature. You’re putting those carts way before your business horse, too.”Jeff Haden is a contributing editor for Inc.

All you want to do at this time is get the administrative tasks rolling. Keep this in mind, your business can operate under a different name than your company name. A “doing business as”(DBA) form takes minutes to complete. And you can change your name later if you like.

Get your Employer Identification number (EIN)

EIN is your federal tax number it’s used to identify your business.
You don’t need an EIN unless you will have employees or become a partnership, LLC, or corporation. If you don’t need an EIN, you may want to get one down the road it’s free, and you keep your Social Security number private and reduce the chance of identity theft, because if you don’t have an EIN, your SSN identifies your business for tax purposes.

Time To Register Your Trade Name

If you’re not operating under your name, your city, county, or municipal may require you to register a trade name. Most of the time you get approved on the spot.

Business License

The city or county will require a business license. It only takes a few minutes to fill out. Use your EIN instead of your Social Security number for privacy reasons.

Business personal property tax forms if necessary.

Businesses are taxed on “personal” property, just like individuals.

Permits

Every city or county have permit requirements.

Need A Certificate of Resale?

A certificate of resale, also known as a seller’s permit, allows you to collect state sales tax on products sold.

Get A Business Bank Account

Get a business account using your company name and EIN, and only use that account for all business-related deposits, withdrawals, and transactions. TIP- Pick a bank or credit union that is convenient. Check out your local credit unions; often they provide better deals than banks. Who ever you choose make sure you build a trustworthy relationship.

Set Up a Simple Accounting System

Don’t spend hours trying to find accounting software, for now as long as you record everything you do now. Later on, you’ll have real data to the plugin, and you’ll be able to customize as system fairly easy down the road. Your accountant can also be helpful suggesting a software that will work for you and his system as well.


Business Startup Checklist

business startup checklist book cover

I have a FREE PDF for you that covers a startup checklist every business owners should have. It  covers legal as well as other important tasks that need to be done at the beginning stages of your restaurant business.

Much success in your business startup!

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