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Will a corporation protect me from liability? It can, if handled correctly. You may have heard about
"corporate veil," which means that you can't be sued personally for anything that happens in
corporation and your personal assets can't be attacked by creditors or a lawsuit on
corporation. But in order to have this protection, you must act like a corporation. This means conducting board meetings, taking notes and publishing minutes in your corporate book.
In addition, be sure to have a separate corporate checking account and, if you need them, corporate credit cards. Don't use corporate money for personal purchases, and vice versa (unless you file an expense report). Many people think they don't need to go to all this trouble if there is just one or two people in
company, but in order to be treated like a corporation, you must act like one. Your attorney can give you more details.
How do I register my company name? To register your company name simply contact
office of
Secretary of State. This is easily done by phone. The registrar will tell you if
name you have in mind is available as a corporate name and will reserve
name for you if it is available. You will be sent a form to complete and submit with a nominal fee. For more information you can also visit
Secretary of State's website.
Do I need a business license? Nearly every business will require a county or city license. Luckily, such licenses are relatively easy to obtain and are not expensive. For local licensing requirements, contact your city or county government offices.
Some businesses might also require a state license. For example, hair stylists, contractors and most businesses serving food fall under
purview of
state licensing board. Each state has an agency that deals with these types of businesses. Contact your local government offices to see if your particular business requires a state license.
Some businesses will even require federal licensing. Examples of such businesses would be those that provide investment advice or that deal with firearms. Federal licensing is typically required for businesses that are highly regulated by
government.
I operate my business out of my home. Do I still need a license? Operating a business out of your home does not get you off
hook when it comes to licensing. You should check local zoning requirements and property covenants. You can find this information at
court house or by calling your local license department. Home businesses are also subject to zoning laws that regulate how property can be used and may restrict various activities.
This is just a sampling of
legal issues that must be addressed by every new business owner. To learn more, take your favorite lawyer to lunch.
Just be prepared to pick up
tab.
Here's to your success.
Tim Knox tim@dropshipwholesale.net For information on starting your own online or eBay business, visit http://www.dropshipwholesale.net

Tim Knox as the president and CEO of two successful technology companies: B2Secure Inc., a Web-based hiring management software company; and Digital Graphiti Inc., a software development company. Tim is also the founder of dropshipwholesale.net, an ebusiness dedicated to the success of online entrepreneurs. http://www.dropshipwholesale.net http://www.smallbusinessqa.com