Legal Basics for New Businesses: A Starter Checklist

Legal issues feel boring until something goes wrong. A short checklist helps you start on solid ground. Rules vary a lot between countries and states, so consider this general information and talk to a local professional.

Choose a business structure

Sole proprietorship, partnership and limited company each differ in paperwork, taxes and personal liability. A company structure often separates your personal assets from business debts.

Register and get licenses

Register your business name and tax number, and check whether your activity needs a permit or license.

Keep finances separate

Open a business bank account and keep clear records of income and expenses. This makes taxes much easier.

Use written contracts

• Customer terms and refund policy.
• Agreements with freelancers and suppliers.
• Employment contracts.
• Confidentiality agreements when sharing sensitive ideas.

Protect your brand

Check that the name is not already used, register the domain and consider a trademark. Make sure the company owns the work created for it.

Respect privacy rules

If you collect personal data, publish a privacy policy and handle information carefully. Laws such as the GDPR and similar rules elsewhere may apply.

Taxes and insurance

Learn about sales tax or VAT, income tax deadlines and whether you need insurance.

Spending a little on professional advice early is usually cheaper than fixing problems later.