Government Regulations on Small Businesses
You're your own boss. You have the freedom to choose when and how you work. You control your salary, can take vacations when you want and cannot be fired! In short, being an entrepreneur is the greatest job in the world. However, just like most good things in life, being a business owner comes with strings attached, and these strings lead right to the government.
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Regulatory Levels
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As a small business owner, you will be required to comply with several government regulations. For instance, the city and county in which you do business may have laws and regulations that you must follow; those are in addition to the state and federal government regulations placed on small business owners. While federal government regulations for small business owners are the same regardless of the location from which the business operates, city, county and state laws vary.
Licensing
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No matter where in the United States you operate your business, you will likely need to apply for and receive a business license in order to legally operate. Depending on your industry and the products or services you sell or how you sell your goods, you may also need to secure additional licenses. For example, if you sell alcohol, cigarettes or adult products, you will need special licensing permission to do so; if you're a real estate agent or broker, lawyer or doctor, you must have licensing or certification on file with the state in order to run your business; if you sell goods from a cart or as a mobile vendor, you may be required to have other forms of licensing or permits.
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Agency Registration
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As a small business owner, you'll need to form a relationship with several government agencies. Some agencies that may have government regulations with which your small business must comply include: (1) Secretary of state---register your business name and the form of the business (sole proprietor, partnership, LLC, or corporation), (2) Department of Revenue (for city, county and state tax compliance), (3) Department of Labor (for all employee / employment compliance related items), (4) Internal Revenue Service (obtain an EIN and declare your federal tax status) and (5) the Occupational Safety and Health Administration (OSHA). While all small business owners will not necessarily need to register with all of the above agencies, entrepreneurs should check with each agency (and any other recommended by the state or local government) to make sure they're compliant.
Warning!
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As a small business owner, you must stay abreast of the continuously changing business laws and regulations. No one else, especially not the local, state or federal agencies, will be proactive in assisting you in doing this. You may receive the occasional reminder or notice once you've registered with an agency but, whether you receive notification or not, you're still responsible for compliance. Therefore, it's a good idea to make a list of the pertinent agencies related to the compliant operation of your business and the respective regulations with which you must comply. Include key dates for renewals and regular compliance checks! That way, you'll always be compliant and won't put your business at risk for heavy penalties.
Help with Advisement
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In addition to the agencies listed above, it is a good idea to check with advisors at the Small Business Administration (SBA) and your local SCORE office to learn more about government regulations for small businesses; volunteers and employees of both organizations are rich resources of information to guide you in the right direction, for staying compliant and much more! See the Resources section for links to these organizations and a few others that may be helpful.
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