unanswered questions. It is risky to leave a job to start a business. It is risky to back a new company financially. These and many other risks must be faced, but ensuring that your business is set up properly can reduce those risks and protect you and your assets.
There are many decisions that must be made from the type of business entity including sole proprietorship, Limited Liability Company, Corporation, cooperative, and others. You must properly secure a name with your state, register the company with your state, pay any fees, obtain a tax identification number, and complete a host of formation documents. Business permits and licenses must be applied for if necessary. And you must think about your method of accounting and all tax implications. If you are hiring employees, you will need to know the laws involved in that process. Finally, you must familiarize yourself with state and federal laws that regulate your business and the products or services you provide to make sure you are in full compliance. Furthermore, once all of this is tackled you have to consider ongoing compliance requirements as well.