Legal Structure

• Every business owner must first choose a legal structure. Three of the most common choices are the sole proprietorship, partnership and corporation. A sole proprietorship is a business owned and operated by a single person, a partnership is a business that is owned and operated by two or more people, and corporation is a business that is owned by shareholders.
  
  

Permits and Licenses

• A legal business owner must apply for the necessary permits and licenses before beginning operation. Each city or municipality is responsible for issuing business licenses, as well as the permits required for specialty businesses such as tattoo parlors and mechanic shops.
  
  

Taxes

• Unless the business is a sole proprietorship with no employees, the business owner must apply for an Employer Identification Number from the Internal Revenue Service.
  
  New business owners should obtain professional advice to determine what types of taxes they will be liable for in the state and municipality in which the business is based.