Are you someone who is finally all set to transform your business idea into reality? You must be aware of the fact that there is lot of preparation which goes into launching any business. Designing a well-proof business plan and obtaining funding are the foremost items on the to-do list. Another thing that you should add to your to-do list is to review and educate yourself on the few common business laws which can affect your business in the near future and also in the long term.
Owning a small business will mean navigating through many laws which are meant to regulate the US business. Among the wide array of categories of law which businesses must be aware of, some are marketing and advertising law, labor and employment law, intellectual property law, finance law, online business law, health law, workplace safety and privacy law. However, there are several other business laws which you should be aware of. Read on to know more.
- Business Licenses: In order to legally start a business, you will require a business license. You have to first call your local city government. Check whether or not you need a license and whether you have to know on zoning regulations. For state and federal licensing, you can even check out the official website of Small Business Administration and follow the links which apply to your specific small business.
- Fair Labor Standards Act: As per experts, this is the most vital business law which calls for attention among the entrepreneurs. The act regulates overtime rules, minimum wage, child labor rules and the rules of keeping records. You should read through these to ensure that your company complies with present day regulations.
- Family & Medical Leave Act: In case there’s an employee who’s dealing with some medical issue, or has a family member who is in need of medical emergency, there are certain strict rules which the employer has to follow. You as an entrepreneur should read this guide to know how this law works and how it impacts your business.
- Federal Equal Employment Opportunity laws: This is that set of laws which prevents any kind of discrimination based on color, religion, national origin or sex. It also includes equal pay for women and men and even safeguards people with any kind of disabilities.
- Worker’s compensation: Most of the states including Los Angeles demand employers to purchase an insurance policy which compensates employees in case they get hurt or feel ill due to workplace exposure. If you want to know more on responsibility of an owner, you may even check out the Department of Labor website.
BUSINESS TAX LAWS
- Get an EIN: In order to be able to file your business taxes, you will require an EIN or Employer Identification Number. For getting this number, you have to check out the website of IRS and once you fill out the necessary online forms, you will soon get that number.
- Know which taxes you have to pay: Regardless of whether your business has staff of 1 or more than 100, the IRS will make you pay taxes. Take time to review social security, federal taxes, federal unemployment tax requirements and Medicare. Uncle Sam cleanly breaks down your tax liabilities as an owner. You may even consider talking to your business accountant about this.
- Hiring employees: When you plan on hiring employees, remember that this has an impact on your taxes. The total amount of time for which an employee works for you will have a difference on your taxes. Hence, you’ve got to research about the striking difference between a W-2 employee and 1099 employee before opting for hiring them.
MARKETING & ADVERTISING LAWS
- Can-Spam Act: Did you ever know that there’s a law for emails? Yes, the Can-Spam act regulates all business mails. This law demands honesty and prohibits any subjective lines which are deceptive. You should also inform your recipients where you’re located and also offer them an opt-out of your mail messages.
- Truth in Advertising & Marketing: As the name suggests, this law asks for truth in all marketing and advertising efforts of the company. In case you make any kind of claims in an advertisement, you should have enough proof to back you. You can never be unfair and misleading. In fact, this law is even stricter with regards to products that are marketed to children.
- Telemarketing Sales Law: If your company sells products by phone, online or through mail, you have to inform yourself on the FTC’s telemarketing rules and regulations. Businesses have to ship items within 30 days, offer notices of delivery to the buyer in case the product is delayed and also provide refunds.
Hence, before you jumpstart your business, take into account all the above mentioned business laws which bind your journey as an entrepreneur. Try to abide by the laws if you wish to have a smooth journey.