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Work through the stages in order — Start → Finance → Legal → Market → Sell. Be sure to tap the ^ to learn more and write down details about the step. Tap Save to Priorities to add it to your My Priorities/Steps list.

Stage 3

Legal

Protect your business and ensure compliance

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Checklist Steps

1. Choose Your Business Entity Type

Decide how to legally structure your business. Common options: Sole Proprietor, Partnership, LLC, S-Corp, and C-Corp. Each affects your taxes, personal liability, and paperwork differently.

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2. Form Your Legal Entity

File your formation documents with the state (Articles of Organization for an LLC, Articles of Incorporation for a Corp). Prepare an operating agreement or bylaws to define ownership and rules.

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3. Get a Federal Tax ID (EIN)

An Employer Identification Number (EIN) is required for most businesses to open a bank account, hire employees, and file taxes. Be sure to go to the official IRS page — search 'IRS EIN' and use the first result (irs.gov). It is free.

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4. Get a Sales Tax / Seller's Permit

If you sell taxable goods or services, register for a sales tax (seller's) permit with your state. Be sure to go to the official state page — search your state's Department of Revenue and use the first result (.gov site).

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5. Get Required Business Licenses & Permits

Most businesses need federal, state, and/or local licenses to operate legally. Check requirements at every level of government.

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6. File a DBA / Fictitious Business Name

If you operate under a name different from your legal entity name, file a 'Doing Business As' (DBA) name with your state or county.

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7. Protect Your Brand with a Trademark

A trademark protects your business name, logo, or slogan. Search existing marks and file through the U.S. Patent and Trademark Office.

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8. Protect Inventions with a Patent

A patent protects new inventions or processes. File through the U.S. Patent and Trademark Office.

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9. Protect Creative Works with a Copyright

A copyright protects original works of authorship — writing, art, software, music, and more. Register through the U.S. Copyright Office.

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10. Set Up Contracts & Agreements

Put key agreements in writing: client contracts, vendor agreements, independent contractor agreements, and non-disclosure agreements (NDAs).

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11. Handle Accounts Receivable & Collections

Set clear payment terms and a lawful collections process. Know your rights on late payments and how to follow up without violating debt-collection laws.

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12. Understand Employment Law

If you hire employees or contractors, know wage, hour, tax-withholding, and worker-classification rules. Have employee and contractor agreements reviewed by a professional.

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13. Get Business Insurance for Legal Protection

Protect against liability with the right coverage: general liability, professional liability (E&O), workers' comp, and cyber as relevant to your business.

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14. Appoint a Registered Agent & File Annual Reports

Most states require a registered agent and annual or biennial reports to keep your entity in good standing. Missing these can risk losing your liability protection.

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15. Get Legal Help When You Need It

For entity formation, contracts, IP, or disputes, use a service like LegalZoom for routine needs or a local attorney for complex matters.

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Resources for This Stage

Get a loan or convert your data into an asset!Contact Ron Pedersen at +1 (618) 491-2809, or visit this site
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