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4 Steps to Ensure Your Business is Legal

This is what to do to make your business legal in four simple steps

What are the steps it takes to ensure that your business is legal no matter where it is located in the world?

Starting a business is one aspect, but getting your business legalized and approved is essential. Anything short of that can land your good business with good intentions into a huge problem.

A business start-up can be stressful and exciting at the same time. To ensure that you have a smooth and problem-free experience while starting your business, you need to put certain things in place in legal terms.

What it takes to start and operate a legalized business in Hong Kong is entirely different from what you will experience when trying to start a business in Malta but whatever the differences are, there are still things they all have in common. That is what we are going to be discussing today. But before then, we would want to ask you, is your business legal? 

Whether you are trying to start a new business in the United States, the United Kingdom, Romania, Germany, Bulgaria or anywhere else in the world, here are the four steps you need to follow to make your business legal. 

1. Seek Legal Counsel From A Business Law Firm

It is vital to seek legal counsel from a business law firm when starting a business. All the essential groundwork will be laid by a business attorney. 

Seeking legal counsel will ensure compliance with all federal, state, and local regulations and laws that guide business operations. 

A business attorney will recommend the best legal structure suitable for your business; different business entities require special needs. They vary in business governance, tax implications, and procedural and legal requirements. And you may not know of all these, but consulting a business law firm makes you know all these while getting advice on your business’s best. 

Related: 6 Most Important Legal Requirements Every Start-Up Should Consider

2. Register Your Business

Register your business to make it legal

Legal and government approval is vital for the smooth operations of any business. After selecting your business attorney’s legal structure’s best recommendations, you must register your business under the jurisdiction you have chosen. 

In registering your business, you are also protecting your company’s name. Once your business is registered under a particular name, no other business can use a similar name regardless of its state. 

In registering, you also conduct a trademark search to ensure another business does not already use your business name. Here are important tips you need to consider when registering a trademark whether you are starting your company in Europe, Asia or America.

3. Obtain all Necessary Business Permits and Licences

Different states have special licenses and permit essential for every business to operate legally. You will know about all required business permits and licenses when you consult a business attorney. 

Failing to obtain business permits and licenses usually result in fines and penalties.  The penalty for failing to obtain permits and licenses before operating a business varies across countries and regions. 

To ensure your business is legal, consult a business attorney, and be sure to get all required licenses and permits and know your responsibilities as a business owner

It will be a painful experience to start a business with the hope of making tons of profit only for that hope to be dashed with multiple fines because you didn’t seek the expert advice of a business attorney.

Related: What Happened to the R & D Credit Under Tax Reform?

4. Obtain a Tax ID

Obtaining a Tax ID is one of the essential steps to establish, approve, and legalize a business. You need to obtain a tax ID from the Revenue Service. 

Getting a Tax ID is a step to take that shows that your business is legalized and approved to start operation. 

One of the interesting reasons why obtaining a Tax ID is very important is because having your Tax ID helps to create a separate identity of your business and establishes its separate taxation. 

To ensure you are eligible for different tax benefits and incentives, you need to obtain a tax ID for your business. 

Related: How to Prepare for the Tax Season Like a Pro

A tax ID makes you eligible to pay your state and local taxes. Having a tax ID also shows that you’re ready to work with the government and play your part in creating a functional society. 

To collect a contract from a government agency or big organization, you may need to present your tax ID before they can allow you to submit any proposals.


If you take these four steps, you will not only succeed in making your business legal in any country you site it, but you will also succeed at saving yourself fines and penalties that can lead to the closure of your business and loss of investors’ funds. Do not start any business, especially an international business with first consulting a business attorney. Refusing to do these four things we discussed above makes your business illegal.

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Emenike Emmanuel is a multiple award-winning blogger, CEO of Entrepreneur Business Blog, Chief Evangelist of Ebusinessroom Ventures, and the Lead Coach of an online community of over 12,000 business owners called, The Excellent Entrepreneurs' Network. He’s here to help you start, manage and grow a profitable and sustainable business using digital marketing strategies. Follow him on Facebook, Twitter, Instagram, LinkedIn & Pinterest with this handle, @emenikeng. Telegram group - t.me/yourfirst1000 | Email: [email protected]