Setting up businesses big or small requires a lot of hard work. Securing funds and creating a plan for the business is something that everyone is aware of. But, one needs to ass knowing about small business laws to the list. This article will talk about small business legal requirements that every small entrepreneur must be aware of.
List Of Government Regulations For Small Businesses
-
Business License
Every small business according to law needs a business license to start any business legally. The best way to know the same is by contacting the local government office or visiting the US small business administration website for state and federal licensing.
-
Fair Labor Standard Act
This government regulation for business should be followed by all despite their size and number of employees. Companies still have to classify their employees under the category of exempt or non-exempt. It is even mandatory to classify the workforce as either “Independent contractors” or “employees”. Overtime and minimum wage regulations should be checked by the authorities of local or state governments. When employing someone under 18, the government regulation wants businesses to follow the FLSA law for child labor.
-
Federal Equal Employment Opportunity Laws
One of the regulations, mostly applicable everywhere. According to this law, the pay for women and men should be equal. Support should be given to people with disabilities. There should be no discrimination on the basis of national origin, sex, race, color, religion, or gender. Business owners must also be aware of and prevent pregnancy discrimination against pregnant women.
-
Family & Medical Leave Act
Every employee is entitled to a 12 week paid leave when he or she becomes a parent, has an immediate family without serious illness to take care of, or is suffering from any serious medical condition.
-
Occupational Safety & Health Act
According to this law, every employee working in a firm is assured that the work environment is safe and doesn’t involve any known health hazard.
-
Workers Compensation
An insurance policy is a must that covers compensation if the employee falls ill or gets hurt while exposed to the workplace. The website by the department of labor gives all the required information for the same.
-
At-Will Work
Except for Montana, all the states in the US have the At-will work law. Until not illegal, employers have the right to fire the employee at any point, but the reason should be valid. The same goes for an employee. He/she is free to leave the job as per their wish.
-
An EIN is Mandatory
According to the law, every business person should have an Employer Identification Number for filing the taxes. One can check the eligibility and fill the form on the IRS website.
-
Tax Laws
A company despite the number of employees has to pay a certain tax. It is very important for every business to take out some time and review federal unemployment taxes, medicare, social security, state tax, and federal tax. The IRS website is the perfect and authentic source to provide details about the same. Moreover, one should hire an accountant for further help.
-
Honest Marketing & Advertisements
According to law all marketing and advertisements by a firm should be truthful and should be backed by proof. These ads cannot be unfair or misleading. This rule becomes even more strict when using endorsements or children to market.
-
CAN-SPAM Act
Not everyone must be aware of the law behind emails. Commercial emails are regulated in this act. It bans the subject lines that are deceptive and requires honestly. Additionally, the recipients must be given information about the employee’s work location and have the freedom to opt-out of the emails.
-
Law For Telemarketing Sales
When any business sells products online, via phone or text, they need to be aware of the FTC’s telemarketing laws and regulations. According to this law, the products should be shipped within 30 days of the order being placed, update in case of delay, and refund the entire amount if the order is not fulfilled.
-
E-Business Laws
-
-
Collection of Sales Tax
-
Not every state is entitled to sales tax. But few states make the business liable to sales tax if there is a warehouse, factory, or store for the e-business setting. One should check the website by FTC, to know more about it.
-
-
International Sales Law
-
Any business can sell its product globally with the help of a website or online presence. It definitely gives more opportunity but there is certain regulation that needs to be followed. So, before selling products online internationally, one must know laws regarding shipping, taxes, customs, etc.
-
Data Security Laws
Reliable security should be there when a business is collecting information that is personal and sensitive from its clients. The data needs to be kept secure and private as well as only the required information should be collected.
-
Act for Affordable Care
Of late, the healthcare industry and laws have seen drastic changes. One can go through the government website of healthcare to know about this act according to the business and industry.
-
Healthcare Privacy
According to the small business law, when an entrepreneur provides health-related information for policies of their employees online, they need to make sure that the data is secured as well.
-
Intellectual Property
One can file a patent when developing a new product. Even small businesses have the right to apply for a trademark to protect their firm’s name, logo, brand, or symbol. A copyright option is available when someone is producing an original book, music, digital work, or movie.
The above-mentioned pointers are a few important small business laws that every entrepreneur must be aware of. Apart from that, there are bankruptcy laws, employee iring laws, for which an entrepreneur needs to visit the office or official website.
