Depending on the type of business under consideration, the legal issues surrounding a new start-up can be overwhelming and confusing for the entrepreneur. Many legal requirements vary from state, but the following are legal matters that would tend to apply to most new businesses starting out:

Business Location
Local zoning ordinances dictate where you can conduct your business. This is particularly a problem with home-based businesses that may unwittingly be operating a business that violates zoning restrictions on residential properties. Check with the local zoning board before you hang a sign out directing customers to your doorstep. If you are in a business that prepares and/or serves food, the local board of health is also interested in the premises where you do business.

Registering the Business
In many states, the Assumed Name Act (or local version of it) requires some businesses to publicly disclose the owners. If you are a sole proprietor or a partnership and you are doing business under any name other than the legal name of the owner(s), you are required to register the name of the business with the county clerk or some other public official. The process is simple, and the cost is minimal. An incorporated business is also required to register, but corporations register with the secretary of state.

Business and Professional Licenses
There is a lengthy list of professions that require licensing. Not surprisingly, physicians, cosmetologists, and day-care operators are included on this list, but some professions that require licenses may be less obvious. In many states, roofing contractors, alarm contractors, and nail technicians are also required to be licensed. Professional licensing is handled at the state level. Check with your state’s department for professional licensing to determine which professions are affected.

In some cases, businesses may also be required to secure local and federal licenses as well. If you are operating a business that involves a heavily regulated activity such as broadcasting, the rendering of investment advice, or dealing in firearms, don’t overlook the possibility that additional licenses may be required.

Other Legal Considerations
This is not an exhaustive list of the legal issues that a business could face. Navigating through all the red tape is a considerable challenge for an entrepreneur just starting out. Consulting an attorney is the best way to ensure that a new business is meeting all of its legal requirements.

Another good resource is the local Small Business Development Center or SCORE (Service Core of Retired Executives) chapter. A listing of local offices can be found on the Small Business Administration (SBA) Web site at SBA.gov.