Laws That May Affect Your Business Organization
are many laws that are applicable to owners of small businesses.
It is best to consult with professionals to determine
which laws will be applicable to you, what permits you
will need to commence business and where to go to comply
with the various rules. Your attorney should be able to
assist you in complying with labor laws such as the employment
of minors, illegal aliens and workplace safety rules.
Your accountant should be able to assist you in filing:
time for payment of withheld and employers share of employment
tax returns and payment
Sales Tax Reports and Payments
Take a look at our Small Business Tax Center created in
association with the I.R.S.
Your attorney may be able to help with requirements for
business licenses including special licenses for particular
businesses as well as building codes and permits for remodeling
and zoning laws, health department requirements and environmental
You Have a Partner?
is best to make your decision concerning whether to have
a partner by preparing a "for" and "against"
list. The most common reasons for joining with another
person to start the business are:
is safety in numbers. In other words, you have two heads
instead of one to discuss and make decisions. In the words
of Solomon: "Two can accomplish more than twice as
much as one. If one fails, the other pulls him up; but
if a man falls when he is alone, he's in trouble. And
one standing alone can be attacked and defeated, but two
can stand back-to-back and conquer. Three is even better,
for a triple-braided cord is not easily broken."
will not need to be at the business at all times. You
will have someone else who will be there to share the
load and permit you to take a vacation and have sick time.
will also have a highly motivated co-worker, not just
someone who is earning a paycheck.
can also be advantageous when they have complementary
may be necessary to have a partner to contribute capital
and share the risk when things do not proceed as planned.
Some of the arguments against having a partner are:
will have to share the rewards if the business is successful.
will lose total control over the business, particularly
if you and your partner have difficulty in making decisions.
will have to share the recognition that will come if the
business is successful.
partner can be a disaster if his or her judgment is not
run the risk of a falling out and perhaps the necessity
of one partner buying the other out if you do not get
Some of the things to consider in deciding whether a particular
person will make a good partner are whether you have similar
work habits, similar objectives concerning how to run
the business and whether your strong points are similar
or complementary. For example, different capabilities
permit you to spread the workload and provide better coverage
capabilities may permit you to give each partner a veto
over important decisions in his or her area of expertise
to help maintain stability and eliminate conflicts. Finally,
you may want to consider whether you should have a buy-sell
agreement in the event of a disagreement, and how the
purchaser will pay for the portion of the business he
or she is buying (and whether you should fund the buy-sell
agreement with insurance in the event of the death of