Starting a business involves brainstorming, planning, and ensuring that you comply with all necessary legal obligations. Not only do these requirements ensure that businesses operate within the law but it also protects small business owners and their consumers. Let’s take that innovative new business idea and walk through all the requirements you need to consider to successfully start a business that’s legally recognized. What legally defines a small business? A small business is an independently owned and operated entity that engages in commercial activity and fulfills the set industry-specific size standards. The size standards are different for each industry and are defined by the government body established to oversee such matters. Generally, the size is based on the number of employees and annual receipts for a given period. According to the U.S. Small Business Administration , an organization is considered to be a small business if their: Firm revenue ranges fr...