Question: I am opening a new business and have rented office space in the Valley. Before I officially open, what else do I need to do to follow the law?

There are at least three matters about which many first-time business owners do not know:

Answer: First, if your business name is anything else but your name, you will need to file a Fictitious Business Statement with the Los Angeles County Clerk. This is a form that you can obtain online at www.lacounty.gov. Click on the "Business" link, then "Fictitious Business Name." There are instructions along with the form.

The purpose of the Fictitious Business Statement is to have a record of business owners and to ensure that no two businesses have the exact same name. On the Web site, there's a way to check that no one else is using the name you want to use.

The fictitious business name is also referred to as a "dba" or "doing business as." (For example, John Smith dba Smith's Travel Service).

Your Fictitious Business Statement expires after five years, but can be renewed.

Next, you will need a business license for the city of Los Angeles, which levies a tax on companies within its boundaries.

Again,

Advertisement
you can do this online. Go to www.lacity.org, then click on - in order - "for business," "start your own business" and "register your business with the city."

You may need help from a tax adviser to complete the form since the city business tax is based on your company's gross revenue. There is also a tax on the personal property (such as equipment and furniture).

Finally, you should buy general-liability and contents insurance. If anyone claims to have been hurt on the business premises, this insurance will most likely protect you. This type of insurance will also protect you if any of your equipment is damaged or stolen.

You can discuss this kind of coverage with your insurance agent to determine the need, type and scope of appropriate insurance for your business.

There are certainly other matters to consider from a business standpoint, such as employment issues if you will be hiring employees.

If you are in a partnership or are a shareholder in a corporation, additional issues will arise that should be considered at the very beginning of the business.

This article isn't a full discussion of any of the issues, so contact an attorney and tax adviser for more information.

A. Hillary Grossberg is a member of the San Fernando Valley Bar Association. With an office in Encino, she specializes in business, estate planning, bankruptcy and real estate law.