AMEX Open Forum: Do it the right way.

When it comes to starting a new business, there are many factors that would make your business operate effectively. Many people may think it is easy to put a business to operate for the first time. But there a couple of steps that business people most follow in order to do things the right way, which is what it is called “The Law”. Someone may have an excellent business idea, optimism and the money require for the startup, but the most important aspect is missing, which is the legal aspect. Company filings and regulations are not the most exciting parts of your startup. Yet they’re critical to the health of your business and personal finances.

First of all, it all depends on your situation or type of business to determine the type of person you have to hire to make all the legal procedures. For example, it could be a tax accountant and attorney. The point is that the person hired needs specific experience in your industry so that you can go a long way to helping you steer clear of trouble. Here’s a list with the different thing you have to keep in mind in order to start a new business correctly.

1.       Pick a name and make sure you are legally permitted to use it.

2.       Register a fictitious business name/DBA (Doing Business As)

3.       Incorporate your Business or form an LLC

4.       Get a federal tax ID number

5.       Learn about employee laws

6.       Obtain the necessary business permits and licenses

7.       File for trademark protection

8.       Open a bank account to start building business credit

           By keeping all of this things on mind, there would be a lot of probabilities that your business will succeed instead of going down in a short period of time just because you didn’t do what you were supposed to do since the beginning.

New Card law may reduce credit

   The CEO of American Express Kenneth Chenault explained that there is a new law that would limit custumers from sweeping their cards. He said this is  a situation of significant importance since it would totally affect the card issuers and reduce the flow of credit to customers. Therefore, the company would probably loss money since the law has more negative effects than positive as explained Kenneth. But, an relieve is that American Express would be hurt less than their competitors since 80 percent of AMEX revenues are generated from fees. The White House said President Barack Obama would sign the bill into law on Friday. Card issuers say the legislation could raise costs and reduce perks, including for creditworthy customers whom the legislation is intended to help.