In the May Issue:
Baking a delicious muffin requires the right balance of ingredients, perfect timing, and attention to detail. Starting a business is no different. You must mix the right legal ingredients, stay on top of deadlines, and protect your business' assets to ensure its success. We've created ten steps to help you properly mind your muffins, and bake a legit business that's both sweet and compliant. So, please put on your apron, pre-heat your oven, and let's get baking!
Get Your Mix Right:
Legalizing your business involves more than just registering it with the state. Depending on the type of business you're starting, you may also need to obtain permits and licenses from state or local agencies. Additionally, you will need to register for federal, state, and local taxes, and obtain an Employer Identification Number (EIN) from the IRS.
Use the Right Muffin Tin
Just as a muffin needs a muffin tin, a business needs the correct "muffin tin" to thrive. This means having the proper legal agreements - from customer and vendor agreements to disclaimers, privacy policies, trademarks and copyrights. Protecting your business this way can set it up for success and prevent legal mishaps.
Watch Your Dough
When baking muffins, ensure your ingredients are fresh, and your recipe is on point. Similarly, when advertising and selling your products, you should follow FTC guidelines for transparent and fair practices, to ensure your business is legally compliant and trustworthy.
Separate Your Batter, Avoid Legal Splatter
Like biting into a burnt muffin can ruin your day; mixing business and personal finances can do the same. Keeping your finances separate is crucial to avoid batter mix-ups and protect your business's assets. So, let's keep our business and personal finances in their own mixing bowls!
Protect Your Muffins
Protect your muffins with a baking cover and protect your business with insurance. There are many options, from general to professional liability, based on your business needs. Find the proper insurance to safeguard your assets and avoid legal setbacks.
Keep Your Recipes Straight
Muffins only last a few days, but you'll want to keep your business records for at least three years. The IRS uses this three-year policy unless fraud is suspected. Keeping your recipes (and receipts) straight gives you a solid foundation for your business to rise and shine!
Keep Your Oven Clean
A dirty oven can ruin a batch of muffins. You must stay updated on laws and regulations to avoid being in for a nasty surprise. Stay informed about changes to labor laws, environmental regulations, and tax laws that may affect your business.
Organize Your Pantry
Ah, the joys of a well-organized pantry! It not only makes baking easy, but reminds you that proper record-keeping is the key to running a successful business. Keeping your financial records in order prevents legal mishaps, and ensures your business stays compliant with state and federal regulations.
Taste Test Your Muffins
Muffins aren't the only thing that needs a taste test--your business does, too! It's essential to keep your business fresh and delicious by checking it regularly, to make sure you've filed all necessary annual reports with the state and tax forms. This will help avoid penalties and other legal troubles arising when a business falls out of good standing.
Meet Stefanie Magness - baking connoisseur & CEO of Legit My Biz
Stefanie Magness is the ultimate baking connoisseur when it comes to creating legit businesses. As CEO of Legit My Biz, she adds just the right amount of ingredients to cover all bases and assets (yes, even the derrière) in order to whip up a successful business. She's also the Executive Producer at LegitTV, where she mixes together the perfect blend of entrepreneurial knowledge for viewers.
As if that wasn't enough, Stefanie also serves as a Business Counselor at the DC Small Business Development Center and DC Women's Business Center. With a degree in law, and over 24+ years of experience, Stefanie's journey to create legit businesses began at the Better Business Bureau. Later, as a business lobbyist, she focused on government relations and helped create legislation that benefited business owners. When it comes to baking up a legit business, Stefanie Magness is the master chef you need in your corner.
Connect with Stefanie HERE!
