Legal Issues for Women When Starting a Business in US

In starting a business, both genders should have equal rights and treatments in doing so. There should not be any widespread domination of one over the other, for there is nothing a man can do that a woman cannot and vice versa. Though, it is still addressed that it is harder for a woman to start up a business, much like the minorities. Specifically, it is often aforementioned that they often have less capital and experience in starting a business.

Another problem that is stated is the practiced sexism that is often road blocked. Many of the women are often known as nervous and hesitate taking the risk, therefore causing the business to fail before taking the first step. Furthermore, let us keep in mind that it is not only women that do this mistake, but they are known by it due to certain occurrence and statistics that are often associated with it.

Common Legal Mistakes for Aspirant Women Entrepreneurs

There are many discrepancies that attempt to explain the difference of success rate for both genders. It is often stated that the most common challenges a woman has to deal with are gender bias, dual-role in terms of family relation and business, and the poor assessment of capital and credit.

It is also aforesaid that they are commonly caught off guard with the wrong decisions that causes legal pitfalls, and that the planning should be more concrete in order to address such occurrence. In order to avoid this, it is advised to consult a legal advisor to review the legal documents needed and ensures that the process is smooth sailing. Moreover, here are some of the most common mistakes a businesswoman does that you should avoid:

1. Wrong Business type or corporate entity

A decision should be assessed properly regarding what the business would be about and what it needs. The wrong business type may result to certain tax consequences, or worse, damaging your personal assets. Choosing the correct entity guarantee you proper legal protection form business liabilities. The choices may be limited liability company (LLC), general partnership, S Corporation, C Corporation, and sole ownership.

2. Wrong classification of workers

Mis-classifying workers may result to civil fines or disbarment from legal programs stated by the government. With this said, it is difficult to choose whether to consider employees or contractors, especially as the business grows. In order to have a concrete decision, keep in mind the wage assessments and works that needed to be fulfilled with its time span.

3. Contract failure

Sometimes, the owner tends to overlook the contract for distinct terms that should be indicated but are not. This may cause for some loopholes regarding the vendor and client relations, and may also result to the company’s jeopardy.

4. Not providing immediate solution to conflicts that have risen within owners

It is important that the establishment of the company starts with the relationship of the owners, whether it is partnership or investment. To address this, you should consider the possibility of “what ifs” that may happen and plan ahead of it. The problems are inevitable, and even with its occurrence, the owners should ensure that it will not cause a great impact in the company.

5. Failure to comply the negotiation of commercial leases

As a businesswoman, many renters take this as an advantage or opportunity due to their attitude of going with the flow instead of directing it. This should not be the case. Specifically, learning how to negotiate is one step towards a good business attitude. You would do this often with potential customers or investors, which is why you should learn your way through it.

6. Awareness of financial stability

Usually, some businesswoman uses their own funds instead of implying the stated appropriate amount directed for the business. You should keep in mind not to harm your personal assets with the liabilities of your business as much as possible.

Instead, one should document the capital investment and indicate how and at what time span the allotted money given will be repaid. It helps to have something like business insurance to protect your business should something happen, there are a ton of resources online that might be able to help if you want to find out more you might want to look into a reputable insurance company.

7. Cash flow problem

The owners should keep track of the transactions, and that it is well-documented. It is also crucial to establish a plan in cases of costumer claims , especially if it is under a collection agency. ITIN Application

Individual Taxpayer Identification Number (ITIN) is used in order to have a startup in the business world. It is specifically needed for those who do not have Social Security Number (SSN). Keep in mind that both gender need the ITIN for business, especially if they are a non-US resident.

It is issued by the Internal Revenue Service for those involving transaction with taxable involvement in the United States. Though, it is not used for personal identification, and social security benefits.

You would need this in the process of opening a bank account, rentals, or mortgage loan. There are no specific requirements needed that is with relation to gender, but only varies solely to residence in the US. To obtain an ITIN from abroad, here are the following requirements:

* Application for ITIN completed form (Form W-7)
* Photocopy of current passport
* Application fee
* Self-addressed post envelope

If you are in the state, here are the following requirements:

* Application for ITIN completed form (Form W-7)
* US federal income tax return
* Proof of identity-can be a passport or any of the two documents (National identification document, State ID, driver’s license, or US Citizenship and Immigration Services photo ID)

Keep in mind that in terms of complying with legalities, all of the needed documents are needed regardless of gender. The documents solely depends on US Citizenship or not, and the indicated business type. It might be helpful to consider a service similar to CloudPay if you want a streamlined solution for payroll related issues.

Legal requirements for business aspirants

Some specific requirements are needed in order to ensure the legality of your business. It is critical to obtain this in order to ensure that the progress of your newly constructed business would be smooth sailing, and in order to prevent any potential mishaps. Specifically, some of the needed documents are the following:

* Business operation license
* Tax identification number (ITIN, EIN)
* Tax license
* Business name permit
* Health department permit
* Land permit
* Special state issued business permits

It is important to abide to the needed permits, regardless of gender or citizenship. Additional documents depends on your type of business or your state, but regardless, knowing the purpose of every permit is an advantage in cases of legalities and proper progress of the company.

Women Entrepreneurs Business Ideas

Being a women does not mean that you cannot be entrepreneurs. Though, even the most motivated aspirants can struggle in deciding the right business for them. Some obtains a vague idea but are often disregarded, while others have ideas the freely flows throughout their head but fails to be done. In order to have an insight unto what you want, consider knowing your strength and weaknesses; and assess yourself unto the right business path wherein you know you can excel the most.

In order to give you a gist about the possible businesses, here are some business ideas for businesswomen:

Software development

Software development is not directed only for men, as it depends on the assessment of skills. If you have an idea for a great piece of software or application, do not leave it at the dark and bring the ideas together. The advantage is that some of the most creative ideas may also come from women.

Website management

It is known as a very diverse business. You can sell ads, hire, promote on social media, schedule content and many more. In terms of statistics, many of the women aspirants tend to be successful as website managers. Maybe it is your time to shine!

Freelance writing

It is preferred if you want an online based income. It is aforementioned as a business that tends to make money fast, but your opportunity varies. If you have a keen eye and likes good writing, then consider a freelance writing business.

Blog

It is a win-win situation for you to get paid as you share your ideas! Specifically, if you are a writer, and likes to critique, then this is the work for you. If it permits, your blogging income may be on a steady rise as you fathom your thoughts and share it to the audience or masses.

Final thoughts

Being a woman should not be a liability, but should be an asset. Learn your strengths and work your way through it. Being in the business world comes with great responsibility that you should obtain, and prosper for the following years.

Keep in mind that you are starting a business that is not classified as temporary. Instead, imagine it running for the following years and plan ahead in order to know what actions should be given in times of potential harm in business.

As a businesswoman, you should know the field of your company and assess all of the possible needs. Now that you know the necessary information, apply it to your business!