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3 legal issues new businesses face

After years of hard work and planning, it is finally time to follow your dream: to open your own business in North Canton. Unfortunately, starting your own company is not as simple as hanging an "open" sign on the door. Not only should you have a business plan, but you will also have to tackle various legal hurdles.

There are several legal issues that many entrepreneurs face when they open their first business: for example, filing for a federal identification number, registering the business with the state, and creating an ownership agreement and articles of incorporation. Here are three of the most common legal issues that many new businesses face.


Before you apply for the federal identification number or register with the state, the very first legal issue you will face is choosing the name of your business. Fortunately, this is usually the simplest legal requirement you will tackle. However, the important part of this task is choosing a name that is not already in use. If it turns out the name you have your heart set on is already legally registered by someone else, you will have to choose a different name.


Even before you choose a name for your business, you will have to consider what kind of business structure best suits your needs. For example, if you will be the only owner, a sole proprietorship might be your best choice. If you plan to go into business with someone else, a partnership or s-corporation are two options to consider. You must take into account tax consequences as well as legal requirements when you choose a business structure for your startup.


Some businesses require certain permits and licenses in order to legally operate in a specific locality. Take the time to research what kind of business license you need to open your company in North Canton or the surrounding area. The requirements can change from municipality to municipality, so make sure you obtain the correct permits or licenses so that you avoid future fines or legal problems.

If you are planning on starting a business, be aware that there are several legal matters that you must resolve before you hang up that "open" sign. By being proactive about the various legal matters, you can avoid serious complications while you are trying to get your new company off the ground.

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