Important Laws Affecting Your Business
It is important that all business owners know and understand the laws that affect their businesses. It is equally important to comply with those laws. Ignorance of the law has never been a valid excuse in any Court of Justice, and it never will be. As a business owner, it is your responsibility to know what laws affect your business.
Since every business, in every state, in every country is different, the laws that affect your business may be different than the laws that affect other businesses. For that reason, it is impossible to account for all laws that affect all businesses. You will need to find out what laws affect your business, however these tips will help you know what questions to ask regarding certain laws.
Business Structure:
If your business is a sole proprietorship, you may need a DBA certificate and a business license for the city in which you are doing business. Corporations have other requirements, which also vary from state to state. Find out what laws affect you based on your business structure.
Zoning Laws:
It is illegal to operate certain types of businesses in certain areas. Check with your local zoning commission to find out where you can operate the type of business you have.
Licenses and Permits:
Different businesses may require specific licenses and permits. Make sure you have all the necessary licenses and permits specific to your business.
Specific laws of Public Limited Companies:
There are many tax laws and other laws that are specific to corporations. These laws vary from state to state and generally affect the way the corporation is established, managed, and managed, as well as the shares and securities.
Environmental laws:
If your business handles chemicals, hazardous waste, or other materials that affect the environment, the Environmental Protection Agency will have laws that affect your business.
Employment Laws:
Employment laws will affect how you hire employees, how you pay them, and how you treat them. Failure to comply with labor laws will almost always result in a lawsuit, or an investigation by the Labor Board in your state.
Tax Laws:
There are too many tax laws for most business owners to keep up – unless they are tax professionals. To comply with tax laws, it is best to hire a tax professional.
Commercial and Contract Law:
Just as tax laws are complicated, contract laws are too. Protect yourself and your interests by hiring a business attorney to help you comply with these laws, and to use these laws to protect yourself and your business.
Consumer Protection Laws:
These laws are designed to protect consumers from fraud and dangerous or defective products. A business attorney can usually help you in this area as well.
Internet Laws:
If you conduct any portion of your business on the Internet, you must comply with specific laws. The biggest problem faced by entrepreneurs doing business on the Internet is the new SPAM laws.
Failure to comply with the laws that affect your business can cost you a lot of money in fines and penalties. Being forced to close your business can be the result of not complying with certain laws. Save time, money, and grief by figuring out what laws will affect your business ahead of time, and keep up with changes in the laws over time. There may be other types of laws that are specific to your business. By consulting with a business attorney, you will be able to find out what these laws are and how to comply with them.
Government laws and regulations
Businesses in the United States can choose from many different growth models, styles, and types, but they are still structured and driven by government regulation. A large number of laws affect companies, defining illegality and misconduct or establishing financial and operational codes for a company to follow.
Business laws can be divided into several primary groups, depending on what aspect of the business they affect.
Regulatory laws
Regulatory laws are rules that affect the way companies operate in specific situations. Although most business laws are regulatory in some way, there are several categories of legislation that apply more to certain industries than others. These include environmental laws and building codes set by both the federal government and state governments. There are also regulatory laws for international trade and most types of business licenses.
Labor laws
Labor laws are regulations that directly relate to how companies treat employees. These laws include minimum wage regulations, wage garnishment rules, and worker protection rules, such as the Migrant and Seasonal Agricultural Worker Protection Act. Labor laws also include older laws, such as the Child Labor Protection laws and the Occupational Health and Safety regulations. States also have laws for employee benefit and insurance programs.
Tax laws
Tax laws control how a company must report its financial situation to the government. The IRS, for example, specifies many different methods that businesses must use to report income and expenses. The accrual method of accounting is necessary for companies of a certain size, and amortization schedules must be chosen from a limited number of options, and additional methods have their own regulations. Many of these laws are in accordance with generally accepted accounting principles, but some are notable deviations, such as government-permitted amortization schedules.
Information laws
Reporting laws control how companies must report their finances to investors and the government. These laws establish standards that incorporated companies must comply with and are necessary for transparency. Reporting laws are similar to tax laws, but are more concerned with preventing fraud and misconduct. They are affected by laws like the Sarbanes Oxley Act.