When starting a new business, entrepreneurs must navigate various legal requirements to ensure their venture operates within the law. This includes registering the business with local authorities to obtain necessary licenses or permits, which legitimizes the business and allows it to operate legally. Additionally, compliance with tax laws is crucial; entrepreneurs must secure a tax identification number, file tax returns regularly, and pay any taxes owed. Non-compliance with these legal obligations can lead to penalties, fines, or even legal action, making it essential for entrepreneurs to understand and adhere to these requirements to establish a successful and compliant business.