Why should you formalize your business?

Formalizing your business, or getting your business license and all necessary permits approved, is a critical component of getting your business off the ground. Without these documents, your business may be exposed to additional liability and fines.

 

LegalZoom reports that there are three main reasons for business licenses:

• To identify your business and hold your business accountable for its actions
• To protect public health and safety
• To keep track of your finances for tax reporting

 

Determining how to formalize your business can be daunting. NOLO put together a 10-item checklist for formalizing your business. Start at your municipality – what operating permits and licenses do you need to conduct business in the city you operate in? From there, look at the state licenses and permits required, and then the federal regulations.

 

The City of Oakland offers support through the Oakland Business Center for formalizing your business. The City of San Francisco offer support through the San Francisco Business Portal for formalizing your business.
As always, we’re here to help! For business consulting services at OBDC, please contact paula@mainstreetlaunch.org or 510-830-3202.

 

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