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These vary from one type of business to another and according to the place and sector, but in general, the most frequent key areas are:

  1. Business Structure and Registration: Decide on a business structure; choose a form of business entity—for instance, sole proprietorship, LLC, or corporation—and register a business accordingly with a state agency. Quite often, this includes registration of a business name and obtaining required licenses.
  2. Tax Obligations Obtain a Tax Identification Number or Employer Identification Number. Register for applicable taxes, such as income, sales, and payroll taxes, and file returns in a timely manner.
  3. Licenses and Permits Obtain a general business license and industry licenses. Zoning permits may also be necessary if your activities take place at a location.
  4. Employment Laws Abide by the labor laws on wage requirements, workplace safety, and employee benefits. Be sure to follow nondiscrimination laws.
  5. Protection of Intellectual Property: Protect your brand name and products with trademarks, copyrights, or patents. Trade secrets are particularly protected through relevant policies.
  6. Agreements and Contracts Put a legally binding form to suppliers' and employees' contracts, customers, etc. Assume good compliance with the terms of service and privacy policies, most especially in cyberspace .
  7. Health and Safety Apply occupational safety regulations and, where applicable, public health legislation to ensure the safety of products and services delivered.
  8. Insurance-Carry liability insurance and, if you have employees, worker's compensation insurance.
  9. Record Keeping-Maintain accurate financial records and documentation for compliance with tax, labor, and other regulations.

Adherence to these legal requirements is very essential for the lawful operation of a business concern and also to avoid legal complications.

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