A is for Ambition
B is for Business Plan
C is for Customer Connection
D is for Distractions
E is for Enterprise EvaluationF is for Fatigue
G is for Gratitude
H is for Harmony
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L is for Legality
There are a number of aspects that need to be considered by any new business owner. Even if what a woman entrepreneur begins with seems to be more of a hobby than an actual enterprise, it's a good idea to get the legality of running a business up straight away.
The first part is to register the small business as a separate legal entity. It can be as a solo proprietorship, or as a partnership with another person. It can also be registered as a corporation. This will depend on the goods and services that you plan to offer through the business. You may want to take the help of an agent who specialises in registering of businesses.
The type of ownership of the business will further influence the right licencing, insurance and documentation that you would require. These aspects will further determine how you account for sales profits and pay taxes in the future.
Furthermore homemade goods have their own set of regulatory laws. If you are into food production of snacks, you will need to get a licence for it. In case you are making skin care products like soaps, scrubs, perfumes and lotions, there is a different regulatory body that you will need to deal with to get permissions.
Yes, in the beginning it may seem like too much of an effort to get the legalities in order, especially when you are not even sure about what your actual product range is going to look like in six months time.
However it's a good idea to start as you mean to go forward. By not covering the legal ground in the beginning, you leave yourself open to lawsuits and regulatory action at a later time. That will only cause more problems than warrantied. Remember to constantly update your documents.
The taxes that a business pays are different from the taxes that an individual pays. There are also various perks and tax breaks that you can take advantage of via government policy and rules. In the long term you will be better off if you keep yourself abreast of the latest taxation laws. Remember ignorance does not free you of your liability.
The Exercise
Finding a good Chartered Accountant is not as daunting a task as it may seem. Start out with recommendations from friends and make a call. Tell them what legal help you are looking for. Find out if they can help you procure the documentation required to legalize your business venture.
Not every large firm will be interested in working with a start up. Don't get upset when they refuse to take you on as a client. They know that you are not a good fit for them. Instead look for companies and individuals who specialise in working with woman entrepreneurs. They will have a better understanding of what you need and will be able to educate you accordingly.
Don't put all your eggs in one basket. Yes, you need to be able to trust the word of your legal advisor, but it is also imperative that you study up on basic laws and regulations for yourself. At least initially you need to educate yourself on all aspects of the law as it relates to your business. Speak with your peers. They will be happy to help.
As you establish a relationship with your legal advisor, it will be easier to ask for details and understand exactly what you need to do as a small business owner. Never be hesitant to ask for clarification. It is the job of a good legal advisor to explain exactly what you need to do and why to be compliant with regulations.
