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What legal steps should I take before hiring employees for my small business in Georgia?

Picture of Chris Battis By   ·  1 minute read

Legal Steps for Small Business Owners in Georgia

As a small business owner in Georgia, there are several legal steps that you should consider taking before hiring employees. Below are some examples:

  1. Obtain a Federal Employer Identification Number (EIN). An EIN is a unique number assigned to your business by the Internal Revenue Service (IRS). It is used for tax purposes and is required if you plan to hire employees. You can apply for an EIN online through the IRS website.
  2. Register for State Taxes. In Georgia, employers are required to register their business with the Georgia Department of Labor and obtain a State Tax Identification Number. This number is needed for state tax purposes, such as unemployment insurance and worker's compensation.
  3. Obtain Workers' Compensation Insurance. If you have three or more employees, you are required by law to have workers' compensation insurance in Georgia. Even if you have fewer employees, it's still a good idea to have this type of insurance to protect your business in case of an accident or injury.
  4. Verify Employee Eligibility for Work. As an employer, you are required to verify that each of your employees is eligible to work in the United States. This can be done through the E-Verify system, which is a free online tool provided by the federal government.
  5. Establish Labor Policies. It is important to have clear and concise policies in place regarding employee behavior and expectations. This can include policies related to vacation and sick leave, disciplinary actions, performance evaluations, and more. These policies should be communicated to all employees and should be reviewed regularly to ensure they are up-to-date.

In addition to the above steps, it is also recommended that you consult with an experienced employment attorney to ensure that you are in compliance with all applicable state and federal laws. An attorney can help you draft employment contracts, review job descriptions, and provide guidance on legal issues that may arise. By taking these steps, you can help protect your business from legal and financial liabilities and set yourself and your employees up for success.