Business Laws which every Entrepreneur Should Know

Business Laws

Are you ready to launch your pet project and make your dream a reality? If so you should be knowing that there are a lot of things to take care of – drawing up business plans, finding a location and arranging for adequate finance are just a few of them. But what potential entrepreneurs often ignore is the many business laws that have to be implemented from the very start. Bypassing this very crucial aspect can land you in a lot of unwarranted litigation and lead to heavy fines and in worst case scenarios even closure of business.

Here is a list of business laws that affect every business and ones that you should definitely be aware of. They have been categorised into areas they pertain to.

Licensing Laws

To legally start any business the first thing that you will need is a business licence. The laws in this regard vary from State to State and you should call the local city council authorities to know what is prevailing in your area. Knowing about zoning rules and Federal and State licensing requirements is crucial. If you find the rules too complex get professional opinion. Top business lawyers practising in your State will be able to advise you and take up the work on your behalf. For example, for starting your venture in Melbourne, Victoria contact PB Lawyers one of the leading law firms in the State.

Employment Laws

There are many aspects to it. The Fair Labour Standards Act regulates child labour bans, minimum wage standards and overtime rules. The Equal Employment Opportunity laws relates to monitoring of any discrimination on the basis of sex, colour, race or religion. It also ensures equal employment opportunities and pay for men and women. The Family and Medical Leave Act covers rules all employers must follow when dealing with an employee with a medical condition or a family member with a medical issue. It includes quantum of time off that must be given and compensation if the need arises. You should know about the laws related to workers compensation too in cases where employees are hurt or fall ill due to exposure at work place.

Online Business Laws

Even a decade back this side of business law was not that important. Today, in the digital age, you have to have an online presence if you have to be successful. Most reputed brick and mortar stores too have branched out onto ecommerce platforms to make the most out of the booming online shopping segment. For sales tax collection, the laws stipulate that you collect the tax in accordance with the laws prevailing in the State where you have your warehouse, office or store. Further, online shopping is not limited by international borders and a business situated in Country A can sell anywhere in the world. In that case factors to contend with include shipping, customs and various taxes. Consult experts if you are in this business category.

Tax Laws

For filing business taxes, you will need an employer identification number. Much of the paperwork has been cut off from the process today and you can get one quickly by filling up and submitting the necessary forms online. Knowing the taxes you have to pay both at the Federal and State level is crucial. You can visit the site of the tax authorities where you will get a detailed breakdown about your tax responsibilities as an owner. You should also work out your tax liabilities in consultation with an accountant just to be sure that you are getting it right and to eliminate the possibility of being slapped with heavy fines and stiff penalties in future.

These are some of the basic tax laws that every owner should be aware of.

Starting a Business – Licensing and Permit Requirements

Permit Requirements

When you are thinking of starting a business you would also need to think about obtaining necessary licenses and permits to run your business successfully. Some licenses and permits are federal, state or local. You must be thinking which one you need, don’t worry, we are here to help you. Below is a list of licenses and permits you would need.

  • General Business Licenses

There are various types of licenses, however, you need the general business license to operate legally almost anywhere. If the business is located within city’s limit, a license should be obtained from the city business license department and if outside the city then from the country.

  • Fire Department Permit

If your business uses any flammable materials or if your premises will be open to the public, you may need to get a permit from your fire department. In some cities and states, this permit should be obtained before opening up the business and in some areas, you do not require permits but simply a periodic inspection to see if you meet fire safety regulations.

  • Federal Tax ID

This one is the most important licenses you need to operate your business. Also known as Employer Identification Number (EIN) is used to identify a business entity. It costs nothing to apply for EIN and you can register for it online as well. Most organisations require this license before conducting business with retailers.

  • Building and Zoning Permit

Whether you will be operating from an existing building or building your own, you should check on the requirements for building and zoning from the city’s council. If you want to do any changes in the building or build a new one you will need a permit that allows construction and an occupancy permit that allows you to take possession. Your contractor should be able to help with these permits.

The above-mentioned are few of the licenses and permits you would need when starting a business.