Starting a business requires a lot of time, effort, and knowledge. Most people experience some trepidation when embarking upon a new business venture because there is a lot of potential liability. When considering an entrepreneurial career path, the laws surrounding the industry are just as important as any factor. A smart entrepreneur will review and abide by all laws to run a successful business.
Federal and State Tax Laws
Tax law for businesses can be complicated. There is a lot to know, especially if you have employees. Entrepreneurs need to abide by laws related to social security, unemployment tax, federal tax, and even insurance. There is a wealth of information provided by the IRS that can help to ensure compliance. However, it is always best to get help from a tax accountant that has experience and is acquainted with the law.
Occupational Safety and Health Act (OSHA)
OSHA governs safety in the workplace and is one of the most important laws every entrepreneur should know. It requires employers to ensure a safe work environment for all employees. This includes providing the required industry training and posting hazard signs as appropriate, among many other things.
The type of license that you must have for your business will depend on where it is located. It will also depend on whether you have a physical location or only an online store. You will need to check with your local government to find out about the requirements for your city. It will also depend on whether you are launching an LLC, sole proprietorship, or corporation.
Fair Labor Standards Act (FLSA)
It is probably no surprise that the law requires employers to pay employees a set minimum wage. In addition to making sure you comply with the FLSA, you must also document your policies and processes to prove compliance if necessary. Since wages are constantly changing to accommodate inflation, an entrepreneur will need to remain up to speed on the federal and state minimum wage.
These are just some of the laws that every entrepreneur should know and abide by to run a successful business. You will also need to be familiar with Workers’ Compensation, the Family and Medical Leave Act (FMLA) and data security, among others. In addition to hiring an accountant, it’s prudent to work with a knowledgeable business consultant. They can help to make your work life less stressful.