Talking in great detail about business law would take several months. There are many laws that regulate small businesses. These vary from the laws of individual states to those of counties. Some of them are relevant to your company today, while others have been outdated since the first decade of the 20th century.
Each law is unique and cannot be learned by all entities, including the local police department. But it is crucial that you are aware of at least the most relevant laws to your business. We’re always here to help.
Here are the following categories:
o Business formation law – These laws concern the structure of the company. A sole proprietorship is different from a corporation.
o Tax laws include all laws that relate to taxation.
o Employment laws are the laws that govern employee recruitment and retrenchment. They also regulate wages & workers compensation, unemployment benefits and workers rights.
o Trademark- and patent laws: These laws govern the ownership of intellectual capital such as patents, trademarks, inventions, and patents.
o Environmental laws: Companies involved in recycling materials or the discharge of hazardous substances must follow environmental regulations.
o Consumer protection law – protects consumers from fraud, unfair advertising or business practices.
Headache, already? Here are some tips to help you manage it.
One size doesn’t fit all. We’ve already discussed the key legal categories in which regulations will apply to most businesses. There may be specific laws that apply to certain activities. While the Securities Law will apply to selling company stock, rules for medical practice are different. You may need to follow state laws when writing contracts or enforcing legal documents.
Start at the start. The whole legal puzzle can be viewed in small steps, just as you would with a business plan. The laws that govern the basics of starting up a business are important to understand. Do you require a business licence or a special permit to start a company? Are you looking to hire people or go it alone? Your business will be required to pay sales taxes if it sells products. Each aspect of your company should be carefully considered to understand which law applies.
Only know what you really need. You don’t need to be concerned about the laws that govern workers and employees if you’re running your own business. If you work in a service-based business, you don’t usually need to worry about hazardous waste removal.
The bigger picture is important. As your company grows, so does the number of applicable laws. Plan new initiatives and projects carefully from a legal standpoint. Your advisor should be consulted about all possible legal issues.
Assure compliance. You should never be afraid to ask questions about your legal advisor. You can also speak with your local Chamber of Commerce to confirm that you are on the correct side of the law.
Make amends. Take remedial actions if you believe you have contravened any law. First time offenders can be treated with leniency, although it will depend on the nature.
Although dealing with laws and legislation can seem like a chore, it is essential. It’s important to take appropriate steps to ensure that they are only encountered as frequently as necessary.