Business Registration, Licenses, Permits & Insurance - Training Transcript

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Business Registration, Licenses, Permits,
Insurance

Training Transcript
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(Slide 1)
Welcome
Hello, it’s your presenter, Sirra Ndow here with you again today, for Week Four of our Free
Business Training Webinar series.

In or last session, we talked about the legal business structure and explored the basic
structures out there, their features, benefits, pros and cons to help us assess which entity
might be best for us. We also emphasized asking for help and advice from professionals as
details, procedures and repercussions can be different for each structure.

(Slide 2)
Training Overview
Today we will be talking about the procedures and paperwork necessary to set up our chosen
business structure so that we can be sure we are operating legally

(Slide 3)
Business Registration, Licenses, Permits, Insurance
We will talk in more details about trade names or doing business as or DBA and trademarks,
what registering a business entails; the difference between licenses and permits, business
insurance and end with suggestions on some points on best practices and things to avoid.

(Slide 4)
What Is Required?

The required official procedures and paperwork and the common practiced before starting a
business depends mainly on the type of business entity one has chosen to set up. The business
industry one is operating in also plays a role in the requirements and these also vary from
country to country, within a country and even within a state in a country or cities within a
state. The length of time it takes and how much it costs also vary based on the above factors.


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In general, setting up a sole proprietorship is the quickest, easiest and cheapest with the least
requirements and paperwork anywhere in the world. In some places, the common practice
can actually be as simple as saying that you are in business and proceeding to buy and sell your
products/services, especially in the informal business sectors.

Procedures can range from a single activity to a score of activities taking days, weeks, months,
even years to complete. For example, to register a new limited liability company in New
Zealand, all you have to do is apply for registration online and it takes one day to complete. In
contrast, it takes a median of 694 days to complete 12 separate procedures when registering
the equivalent of an LLC in Suriname, including 500 days to get approval by the President!
(World Bank Doing Business 2013 Report)

(Slide 5)
Trade Names/DBA

When a business is formed, its name defaults to the real name of the person(s) or entity that
owns it unless it is changed. If the name is legally changed, this becomes the official trade
name aka doing business as (DBA) aka assumed name aka fictitious business name and the
official name of the business.

Sole proprietors and partnerships business not wishing to use their real names must choose a
trade name. Corporations and LLC can also use a trade name different from the registered
business name.

A trade name is a good idea because it can help present a more professional image. More
importantly, most banks would require a legal trade name to open a business account. A
unique business name can go a long way in branding your business.

We have some suggestions and tips for choosing a trade name at our blog on our website
www.baanabaana.com


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(Slide 6)
Trademarks

Trademarks are any unique word(s), symbols, names or devices or a combination of these that
are used to identify and distinguish the goods of one seller from the goods of another. If the
services are sold instead of goods, the term service mark is used.

Trade marking allows legal protection of your company name and brand that goes beyond
what simply establishing and registering a trade name would do. A trademark can be
registered internationally for protection in multiple countries.

Trade marking your company name or assets is not a legal requirement and is a separate
process with additional investment but it can make good business sense in terms of branding.
A good example of a trademark is Coca Cola. This name can never be used again by another
company without penalty. The trademark allows the Coca Cola Company to build a brand
around it without worrying much about copy-cats and with a legal leg to stand on if their
trademark is infringed.

Trademarks are usually and best handled by attorneys specializing in this aspect of business
law.

(Slide 7)
Business Registration

Once you’ve decided on a business name, the next step is registering your business with the
relevant authorities to establish your trade name. This is usually a requirement for the most
part and in most places. You may not be able to obtain licenses and or permits without a legal
trade name.

Registration can involve three steps:

 Pre-registration – This can involve name search or verification, name reservation and or
notarizations


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 Registration – actually establishing your chosen business name as your own with the
relevant authorities
 Post-registration – getting a tax id numbers or employer id numbers, company seal etc

(Slide 8)
Business License

If you own a business, whether you are using your real name or a trade name, you most likely
will need a business license. Even if a license is not required, you may still want to explore
how to get one if your business is more than just a hobby.

The process of getting a business license is different from registering your trade name and is
usually a separate process. A business license essentially give you the right to operate your
business legally in the jurisdiction in which it was issued e.g. if you obtain a license in your city,
you have the right to operate your business in that city. If you move to another city or open a
new location somewhere else, you will most likely need to apply for another license in the new
city.

Permits are also a separate process from obtaining a business licenses and are just as
important, even if you work from home. Permits are dependent on the type of business you
are operating in and you may need multiple permits for the same business.

For example, if you operate a day care in your home in a city in a Contra Costa County,
California USA, some of the permits you may need include:
a) From the city
1. Business License
2. Fire Prevention Information/Inspection
3. Home Occupation permit
4. Land Use Permit/Zoning Clearance
5. Police Regulations/Public Safety Issues permit
b) From the County
1. Business Property Statement
2. Fictitious Business Name Filing
c) From the State
1. Child Care License


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2. Corporation, Company or Partnership Filings (if applicable)
3. Etc
d) Federal
1. Employer Identification Number (EIN or SSN)
2. Proof of Residency Requirement

(Slide 9)
Business Insurance

Business insurance protects your investment by mitigating risks you and your business cannot
afford in the form of premium you can afford.

Business insurance is an important decision which unfortunately it is neglected by most small
business owners, especially home-based businesses.

There are many types of business and business related insurance coverage out there for small
businesses - General Liability Insurance, Product Liability Insurance, Errors and Omissions
Liability Insurance, Malpractice Liability Insurance, Automotive Liability Insurance, Business
Property Insurance, Worker's Compensation Insurance, Employment Practices Liability
Coverage, Life Insurance, health insurance etc

Whether you will be required to purchase insurance or not depends on your business industry
and company assets. For example, if you own a transportation company and your company
owns vehicles, there will be no way you can avoid buying auto insurance.

Business insurance decisions can be tough to understand and navigate. They are best made
with the help of your insurance agent.

(Slide 10)
What To Do / What Not To Do
Do Don’t
 secure and protect your trade name  neglect your business insurance needs
 verify what licenses, permits and  expose your business to liabilities


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insurance you are required to have  operate without a required license or
 examine your assets to determine your permit
net worth and exposure  overlook trade marking your business
 mitigate liabilities with a prevention name
plan  do it alone
 seek professional help

(Slide 11)
This completes our session today. Many thanks to you all for being here. I sincerely hope you
found this session useful enough to join us again next week to talk about Business Finances &
Financing. Please help us improve this training by giving your feedback on the survey we will
be sending along.

Have a great weekend!


Business Registration, Licenses, Permits & Insurance - Training Transcript

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Business Registration, Licenses, Permits & Insurance - Training Transcript