When starting a business, you will be mostly focused on getting funding and creating a business plan. You should also make time to go over all the regulatory requirements that will affect your venture to avoid spending a lot of time and money dealing with lawsuits.
Federal regulations create a bureaucratic hurdle for small businesses, and they cost the American economy about $1.9 trillion a year in higher prices, wasted productivity, and direct costs. The costs to smaller firms with 50 employees or fewer are almost 20% higher when compared to the average for all companies.
In addition to federal policies, small businesses in the US also have to comply with state and local requirements. The laws that can affect your venture include:
1. Tax Laws
Small businesses registered in the US are liable to pay taxes, and you have to figure out which taxes you should pay and when to pay them. Most firms will also have to pay state taxes, which further adds to tax law complexities.
To start, you can check your tax responsibilities as a small business owner on the IRS website. Most businesses opt to consult tax practitioners to keep up with income and payroll taxes.
2. Employment and Labor Laws
You should also understand all laws that relate to employee rights. For example, the Occupational Safety and Health Act requires employers to provide a safe work environment to work. If any health hazards hurt an employee at your premises, you will be liable for damages.
Other labor laws relate to wages, overtime, equal opportunity, welfare, medical leave, and termination. New business owners can explore the FirstStep Employment Law Advisor by the Department of Labor to determine which labor laws apply to them.
Most localities and states require businesses to have licenses, especially in heavily-regulated sectors like financial services, food and beverages, and childcare. If you don’t get the right licenses, you may be liable for fines, or your business may be shut down. You can check the Small Business Administration site to identify the federal and state licenses that you need.
4. Trademark Law
Trademark law protects a business’s intellectual property, including trademarks, patents, copyrights, and trade secret rights. You should ensure that you don’t use a name that is confusingly similar to that of another company in the same field to avoid lawsuits. Start by searching for your preferred name on the internet and the Secretary State Office in your state. You should also explore domain name registrars when selecting a website name.
Are you Compliant?
Launching a small business can be an exciting adventure, but all your efforts can be wasted if you don’t comply with various federal, state, and local laws and regulations. To avoid legal problems, you should explore and understand all laws that impact your business. Contact Adventure Capital Group to learn more about which small business laws will affect your firm.