Looking for Legal advice

Discussion in 'Trading' started by bkveen3, May 11, 2010.

  1. bkveen3


    I know this isn't a legal forum but this is the only forum I read and I know there are at least a couple lawyers here. I'm not sure if this is the correct section either so the mods can move it as they see fit.

    My question has to do with starting a business. If I wanted to start a small at home consulting firm what would be the legal requirements. I'm an economist/industrial engineer looking to offer my services to small mom and pop businesses who can't afford the big guys. I'm looking to set up a pay structure that is set as a percent of value added. What are my minimum requirements to comply with the law? Do I have to officially start a company? Do I have to do anything? Again I understand this isn't a legal forum but I'm just looking for a place to start. Any ideas are greatly appreciated.
  2. I've worked in regulatory compliance in this area; I am NOT an attorney.

    Assuming you are in the USA, you have local, state and federal laws.
    Local laws (your city or county) may require a business license of some sort. Your state probably requires some sort of registration of a "ficticious name" or business registration to do business in their state. And the IRS wants you to have an EIN unless you operate as a Sole Proprietor in which case it's your SS#.

    Make some phone calls/ get on the web and see what these agencies want.

    The local office could go by any name. Start at city hall.

    The state is probably called Dept of State or some dept to do with Corporations.

    And nobody needs to tell you how to find the IRS!
  3. Fwiw, I went to the county clerks office and registered a DBA (doing business as), at this point pick a name for your business.

    Then you take your DBA and open a bank account. The only reason for this is when clients write a check they will write the check using your business name and the bank wants/requires a business account. (Following this route costs you money).


    I have advertised under different names without a DBA and had my customers write the check out to me and avoided the business bank account.

    The main point is to declare your business income on your taxes (Sch C, I think) properly and everyone will leave you alone. Nobody cares.
  4. bkveen3


    I appreciate the answers. That's exactly what I was looking for, just a place to start. Thanks for taking the time guys.
  5. most states require you to have a sales tax license. if your service is state taxable you will be required to collect taxes from your customers and escrow them and then report quarterly.
  6. Depends on the state, but if the business is in your name, you are usually spared the state filing requirements. Like "Joe Smith's Cars" rather than "Metropolitan Cars"

    If you cross state lines, and are an S Corp / LLC, you may need to
    incorporate in each state you have a real presence in. Of course operating on the web can muddy things
  7. What state are you in, I know a little bit about starting a business in TX and NM.