Small businesses are subject to various state and local laws and regulations pertaining to employment, intellectual property, insurance, and other matters. The type and scope of your business will generally determine which laws and regulations are applicable. And if you do business across state lines, or even in multiple counties, you may be subject to multiple sets of laws.
This section provides information and links to government resources to help entrepreneurs comply with business laws and regulations at all levels of government – local, state, and federal.
Overview of business regulations
It is important for small businesses to understand the various regulations governing business in their locality, which may include special licenses, permits, and other specific requirements. For example, establishments that sell alcoholic beverages, typically bars and restaurants, must first obtain a liquor license. Additionally, any structure used for commercial purposes, be it a retail store, assembly plant, or office building, must comply with state and local building codes.
Federal regulations include authorization to work in the United States as a legal resident; occupational health and safety standards for the workplace; Federal taxes; environmental laws; and so on. Companies that wish to protect their intellectual property must file their applications with the United States Patent and Trademark Office. The federal government also handles bankruptcy files and proceedings.
Since states are always interested in attracting new business, they typically provide assistance to help businesses comply with the various regulations that may apply. An attorney can also help your business comply with the law.
Immigration and Employment Law
If you were born in the United States or are in the country on a visa or as a permanent resident, you will need to prove your work eligibility in order to keep a job. The employer will complete Form I-9, proving legal residency, using personal documents as proof (typically a state issued identification card and Social Security card). Unauthorized workers often work for cash or otherwise “off the books,” but employers who fail to prove workers’ eligibility are violating federal law.
While the employer must make a reasonable effort to visually verify the authenticity of documents proving eligibility for the job, it is not responsible for errors in good faith. Original documents are always required; Photocopies will not be accepted.
Employers can also sponsor foreigners for certain jobs through H1, L1, or other visas. But the number of these guest worker visas is limited.
Environmental regulations
Businesses are subject to federal, state, and local regulations regarding environmental safeguards. Key federal laws, most of which are enforced by the Environmental Protection Agency (EPA), include
- Clean Air Act – Regulation of emissions into the atmosphere from chimneys and other sources (carbon dioxide, acid rain, ozone, etc.).
- Comprehensive Environmental Response Law, Compensation and Liability (CERCLA) – This law addresses the cleanup of abandoned or unmanaged hazardous waste sites.
- Endangered Species Act – It is used to protect threatened or endangered species of plants and animals.
- Occupational Health and Safety Law (OSHA) – Although this law is primarily concerned with worker safety, it often addresses environmental issues (such as toxic substances in the workplace).
The links below will provide additional information about business laws and regulations.
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