Business Laws That Need To Be Known Before Starting A Business

It is essential to know about business laws before starting a business, as it will help you operate your business without hindrances or any trouble. It is better to seek the expert guidance of an accountant and an attorney to learn about the latest business laws that will affect your business.

Business Laws You Need To Know Before Starting a Business:

Business structure laws: There are different laws for different business entities. So make sure you learn about the business laws that govern the kind of business entity that you choose to start, Corporation, if its a C, S or closed Corporation, or an LLC or LLP, Sole proprietorship etc. These are very important business laws you need to know before starting a business.

Zoning Laws:

It is essential to know about zoning laws, as certain zones are restricted. It deals with the kind or type of business allowed in certain areas, how the land surrounding a business is used, signboards advertisements, parking etc.

Licensing Laws:

In order to operate a business certain licenses are required and these are some important business laws you need to know before starting a business. If a business operates without these licenses, it may be illegal and the business may be dissolved or forced to close.

Trademark and Patent Laws:

These are laws that deal with ownership; intellectual property rights, inventions etc. are necessary to protect the business.

Employment Laws:

These are laws regarding the hiring and firing of employees, their rights, compensation, safety and work place discrimination and child labor laws, overtime pay structure, disability laws and unemployment laws etc.

Tax Laws:

This section deals with filing of tax returns and depends on the kind of business entity and the State the business operates in, sales tax, franchise tax, income tax and other state and federal tax requirements of a business these are very important business laws you need to know before starting a business.

Environmental Laws:

This law is enforced for the discharge of hazardous waste and recycling laws pertaining to the business.

Health Department Permits:
Is necessary if your business deal with food products to get permits to operate your business.

Fire Department Permits, Air and Water Pollution Control Permits: There are certain laws that certain kinds of business entities have to get permits from these departments to operate.

These are just a few basic business laws you need to know before starting a Business. It is necessary to take precaution that you are not violating any law by operating your business and that all the necessary permits and licenses are obtained from the appropriate authority.
There are firms that offer their services and products to help make the process of starting and running a business very simple and easy.

Business Laws For Small Businesses

Talking about business laws in microscopic detail would need a couple of months of your time! There is indeed a plethora of legislation that governs small businesses, ranging from state to county laws. Some are relevant to your business even today whereas others are outdated and have not been enforced since the early part of the last century!

It is not possible for any single entity, including your local law enforcement department to know them all. Yet, it is vital that you are familiar with at least the most important laws that pertain to your business. As usual we’re here to help.

Business laws fall into certain categories as listed below:

o Business formation laws – these laws pertain to the structure of the business. For example a sole proprietorship is regulated very differently from a corporation.

o Tax laws comprise laws pertaining to all taxation issues, whether it is the filing of returns or the payment of sales tax, corporate tax and other similar levies.

o Employment laws – these govern recruitment and retrenchment of employees, wages & workers’ compensation, unemployment benefits, workers’ rights and related issues.

o Trademark and patent laws – these laws pertaining to ownership of intellectual property such as inventions, trademarks and patents.

o Environmental laws – Companies engaged in the recycling of material and the discharge of hazardous waste must comply with environmental regulations.

o Consumer protection laws – these protect the consumer from fraud or unfair business or advertising practices.

Headache, already? Here are a few tips to help you deal with it.

One size doesn’t fit all. We just talked about some of the important legal categories under which you will find regulations that affect most businesses. In addition, specific laws may apply depending on the type of activity involved. If, for example, you are selling company stocks you will need to adhere to the Securities Law, but for a medical practice, there’s an entirely different set of rules that come into play. State laws may also dictate how contracts and legal documents are to be written and enforced.

Start at the beginning. Just as you craft a business plan in stages, look at the whole legal puzzle bit by bit. Begin with the laws pertaining to the basics of starting a business. Do you need a business license or a special permit? Are you planning to hire employees or will you go it alone? If your business sells goods, it will need to pay sales tax. Look at each business aspect carefully to understand which category of laws apply to it.

Know only what you need to. If you are in business by yourself, for example, you won’t need to bother with laws governing workers and staff until you are ready to hire additional people. Likewise, if you are in a service business, you typically won’t need to bother yourself with removal of hazardous waste.

See the bigger picture. As your business grows, so will the number of applicable laws. Always examine the legal angle when you plan new projects and initiatives. Also, discuss all potential significant legal matters with your advisor.

Ensure compliance. Be unafraid to ask questions of your legal advisor and do not assume something is legal just because it is a common trade practice. Also talk to the local Chamber of Commerce or other business owners to make sure you are on the right side of the law.

Make amends. Finally, should you find that you’ve contravened a law without intending to, take remedial measures. The law is quite lenient with first time offenders – of course, it also depends on the nature of the violation.

Having to deal with laws and legislation may seem a drag, but there’s no denying their importance. Taking adequate steps to ensure that you have to run into them only as much as you need to!