Small Business Start Up Lawyers

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What Process Do I Need to Go Through with the SEC if I Plan on Letting Investors Own Shares of Stock in My Business?

First, make yourself aware of all major federal and state securities laws, as these regulate how and when a company can offer shares of stock.

Next, determine how many shares of stock you are going to issue immediately, and who you are going to offer these shares to. Generally, if a company plans on selling different kinds of stock, it must register each type of stock with the SEC. 

However, many small businesses are able to avoid going through this hassle right off the bat by offering very few shares of stock for sale (usually less than 35 shares), and offering them only to people, such as venture capitalists, who are capable of looking out for themselves in the investment process. As your business grows and you offer a greater number of shares of stock, you will have to comply with the SEC stock shares registration process.

What Kinds of Tax Procedures Do I Need to Go Through When Starting Up My Business?

There are two types of tax forms for registration with the IRS that a small business owner should be aware of when starting a company: 

What Other Types of Federal Regulations I Should Be Aware of as a Small Business Owner?

How heavily the federal government will regulate your business depends on different factors, including the nature of your business, any affiliation it might have with the federal government, and the location of your business. There are some industries, such as public utilities and tobacco, which are heavily regulated by the federal government. Be sure to check for any federal requirements and regulations that would apply to the industry your business will be associated with.

In addition, if the federal government supervises your business or your product, you may need to acquire a special permit from the federal government to even be able to legally run your business.

Also, certain types of businesses have to comply with specific environmental regulations based on what the business produces or where it is located.  Be sure to check with the Environmental Protection Agency for any requirements you might need to fulfill to legally run your business.

Is There Anything I Can Do to Make this Process of Complying with All These Federal Regulations any Easier and Less Confusing?

Trying to get your business off the ground can be hard enough, and trying to decipher which federal laws you must comply with and how to comply with them can add unneeded frustration to the process.  You may want to consult an attorney who has experience dealing with start-up businesses.  Your attorney can advise you of what federal laws pertain to your business and what you must do to comply with them.

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Last Modified: 12-19-2013 12:14 PM PST

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