Legal Question in Business Law in Massachusetts

I'm in the process of setting up my business. I already registered my business with my local town and the state of Massachusetts, so I could get a business checking account with a local bank. I'm making crafts that I will sell from a web site (yet to be constructed) and at local craft fairs.
How do I determine my official "starting business" date? Is it the date that I'm ready to do business? Or is it the first date I make a sale? Or does the government consider it to be the date I registered with the state? Or other?
Thank You,
With appreciation.

Asked on 3/08/10, 10:09 am

2 Answers from Attorneys

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The starting date is not that significant, I am assuming you are operating as a sole proprietor (no LLC or Corporation). I would pick the date you registered your business with the town as your start date. The start date is only significant as to the date you started incurring costs related to your business. If however you registered with the Town in 2009 and that was about it, you can pick a later date that reflects the date you started operations, creating products etc.

One thing you might want to consider is if you want to form a Limited Liabilty Company so that if some one sues you over your product you can protect your personal assets.

Good Luck

Answered on 3/13/10, 2:12 pm

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