Review Legal Requirements
As you work toward launching your new entrepreneurial venture, you must ensure that your business complies with all relevant legal requirements and regulations. The following guidelines provide a template to guide you, but be sure to consult with your legal advisor for all matters that are specific to your business.
- Determine the type of entity that is best for your business.
- File the appropriate document with the secretary of state to create the legal entity for your business.
- Obtain an Employer Identification Number (EIN) from the IRS. This is also called a tax ID number and is the entity equivalent to a social security number. Employers with employees, business partnerships, and corporations must obtain an Employer Identification Number (EIN) from the IRS. You can either apply online or complete Form SS-4.
- Register with your state revenue agency. If you plan to sell products and are required to collect sales taxes, you will need to obtain a sales tax permit or vendor’s license. Every business must register for a sales and use tax permit and pay sales and use taxes on goods and services sold within the state of Tennessee.
- Obtain licenses and permits. Most businesses are required to obtain some type of business license or permit to legally operate. Depending on your local laws and regulations, you may also need to obtain occupancy permits or other licenses and permits specific to your type of business. Check this list for a partial list of other possible legal requirements that may apply to your business.
