Many aspects have to be considered when starting a new business, and finances are just one of them. Bankers can talk you into buying certain policies and offers that may or may not be the best for your plan. If you have a goal in mind and love to care for dogs, you need to pay attention to many other details. While optimism is a good stimulator for your growth, you must also look on the darker side of it so that you don’t end up in trouble eventually. The type of company you plan to start, the amount of money being invested, and the structure of the daycare are all factors that you need to look into. Let us look at some of the possible legal issues involved in running a dog daycare.
1. Structuring of the Dog Day Care
There are different structures you can opt for, and the best would be Sole Proprietorship since it is the simplest form. Although you will be handling the business by yourself, you will need a separate business account that functions in your name. When doing so, the essence of it becomes a single whole where you and your business become one. A personal checking account can be used in the business, though it isn’t recommended. This will help you keep track of the money invested in and generated by the business. You don’t need to pay unemployment taxes, but if your business fails, this can result in you not being entitled to receive unemployment pay.
The next preferred structure is the Limited Liability Company or LLC. It is the form where more than one individual owns the company or consists of a partnership with another organization. Cooperative is another method of structuring your business, where the company is under limited liability, like in the LLC. All the members of the cooperative hold that position by applying to be a part of the board. These members will also have the elect and make decisions about the working of the business.
Corporations are the next prominent structure where everything is complicated and have several people facing debts and losses if the business turns out to be a failure. The last option is a partnership, which is the kind of system where the work, losses, and profits are shared among all the owners.
2. Licensing and Contracts
You need to keep in mind the need for getting a permit to operate a dog daycare. When many businesses only focus on the license, the efficiently functioning companies pay attention to the other crucial aspects such as the permit for kennels. Regular check-ups and inspections can be expected when you want the license approved. The contracts could include that of the property and the dog-handling equipment and essentials. Make sure you have all these filed so that you don’t face any legal issues in the future.