Stay Compliant With Slice’s Legal Startup Checklist

3 min read

Starting a new business requires careful attention to legal requirements before launch. At the very least, it’s important to know how to stay compliant in your state.

At Slice, we do what we can to try to help small (and aspiring) business owners make their way through the craziness that comes with company ownership…and that includes giving them basic roadmaps to leadership. 

We all know every business is different and while it’s best to hire a legal expert to help you stay compliant, we would like to give you a quick run-throuh of what to expect. Here’s a comprehensive checklist of essential business documents and legal considerations:

Business Structure & Registration

  1. Business Structure

Are you a sole proprietorship? An LLC? An S-Corp? A corporation? Each business structure has its own perks and pitfalls, as well as its own tax ramifications. You can read up on this via the IRS tax site to find out which works for you or just talk to a lawyer.

  1. Formally Register Your Name

You are goin to have to formally register your name in your state. If you have a specific concept in mind, you may also want to consider trademarking your name. 

Essential Legal Documents

  1. EIN + Bank Account

You’re going to need to pay taxes. You might as well open a business bank account and get an EIN for it too. An EIN (Employer ID Number) is given to you by the IRS after you register your business and get it structured.

  1. Founding Documents + Registration

You can legally register your business in your homestate (or elsewhere, if you choose), but you do need to do something to make it happen. 

  1. Create a Founders Agreement.

If you have multiple founders, now would be a good time to actually lay out a founder’s agreement designating roles, what can happen, and how your company works.

  1. Bylaws + Meetings

If you’ve become a corporation, you’re going to need to have company bylaws written down in a portfolio.

Licenses & Permits

  1. Licenses + Permits

Please get a lawyer for this. You need to check the necessary licenses, permits, and certifications for your company to be able to operate in your state. It’s not just a federal thing, either. State and local laws can also differ.

  1. Zoning Laws

Unless you’re operating a totally virtual business, you need to know what your zoning laws permit. 

  1. Sales Tax

While this is also a Financial Compliance issue, we’re putting it here because each state has different requirements for sales tax collection. Talking to a tax lawyer can help.

Financial Compliance

  1. Get A Bookkeeper

Do not try to be your own accountant unless you are doing your own accounting firm. Trust us on this one!

  1. Learn Your Tax Obligations

This is another thing that you should go over with a local tax lawyer and CPA. It’s not just a federal matter. It’s also a state tax and local tax thing, too. 

  1. Consider Getting Funding

SBA loans are not always easy to come by, but you might be surprised at how many other options there are. Slice can’t offer “off the bat” funding, but you might be able to get a grant, seed funding, or even work with an accelerator program to get the cash you need.

Employee & Insurance Regulations

1. Learn Employment Laws

We all like to think employment laws are commonsense, but they’re not. You need to know what the laws are for employing others, what insurance you’re required to have, and the local laws for benefits, too.

2. Consider HR Platforms. 

Unless you’re ready to hire your homies for life (erm, maybe don’t do that cause it can end badly), you need to consider having someone help you find the right hire. If you’re new to hiring, getting an HR team to help you can make a huge difference between finding a dream team and finding a liability. 

Final Tips

  • Ensure compliance with marketing and securities regulations
  • Consult with a business lawyer when needed
  • Select a legally compliant payment processor

Proper legal preparation will help your business launch successfully and avoid costly complications down the road. As for legal compliance with processing? We can help with that, but it’s all on you to reach out to us.