Starting and running a successful business is easier said than done. Entrepreneurs who are not familiar with the legal requirements needed to start a business in Michigan are often susceptible to failure. Unfortunately, there are many business owners who decide to jump into the marketplace without doing the necessary research when it comes to legalities. Here are a few legal requirements an entrepreneur will need to fulfill when he or she starts a business.
Insuring employees
In Michigan, business owners who employ more than five people are legally required to insure their employees in several ways. For example, business owners must provide worker’s compensation insurance to cover workers who are incapable of providing for themselves due to a workplace injury. Business owners should never attempt to cut costs by mitigating their insurance rates.
Taxes
Businesses have to pay federal taxes. New business owners will need to apply for an Employer Identification Number before opening their doors. This allows the federal government to differentiate between businesses and determine what is owed in taxes.
Asset protection
Protection of personal assets is one of the most important things to consider when starting a business. It’s not uncommon for new business owners to find themselves the victim of an unjust lawsuit. To protect the business and have personal financial security, business owners can form a Limited Liability Company (LLC). Having an LLC will limit the degree to which the business owner is liable for damages incurred by customers.
These days, however, it seems it’s only a matter of time before a budding entrepreneur is dealing with a lawsuit. This is why every business will need a good attorney to consult when things inevitably go wrong. Those in Michigan who are starting a business or have questions regarding any aspect of business law could benefit by seeking the services of a reputable and experienced legal representative.
