Investment 101: Government Regulations Every Business Owners Must Know
Pointing out all the major laws and regulations every business should follow.
Whether our business is in the gas and oil industry or on the marketing side of things, everyone needs to follow all sets of rules and regulations imposed by the government. Some provisions may have a direct effect on the operation of our business, while others only have a particular impact on papers.
Most of them are a bit confusing to understand, while others are straight-up weird and ridiculous. With that said, let’s dive down and analyze the most vital government regulations that every business owner should follow.
Top Regulations
Big corporations and multi-million dollar businesses usually hire business lawyers to sort out all of their legal affairs, including understanding all government-imposed regulations that have a direct impact on our daily operations. Most regulations weigh heavily towards a specific industry, while others may not feel any impact at all. Whatever the case may be, it is still best to comply and implement it to our business model.
Tax Codes
All businesses, whether it would be merchandising, productions, or operations, share one thing in common, taxes!
Although each investment pays taxes to the government, it is essential to note that there are various businesses listed in a higher tax bracket than the other and should not be treated the same. Failure to comply sometimes leads to imprisonment and a hefty amount of fines and penalties.
There are all kinds of taxes out there, and we might need to get our hands on a financial advisor to discuss each and every one of it in detail. However, we will provide a quick rundown of some of the most common that is essential to our business.
● Income Tax – Depending on the setup and the jurisdiction, income tax should be paid based on the earnings we received from our transactions.
● Estimated Tax – Estimated tax is known as a periodic pre-payment scheme of the estimated income our business will get.
● Employment Tax – Employment taxes are fees related to the staff we currently have in our business. Social Security, Medicare taxes, withholding taxes are the most common example of this.
● Excise Tax – There are taxes paid of purchases associated with specific goods like gas and other commodities. It is better to reach out with the IRS and grab their updated guidelines about Excise Taxes.
Labor and Employment Law
There are government-issued regulations that directly point towards employers and their employees, so we need to take this into consideration and keep an eye on the things that may affect our investment. If our business is starting out, it is recommended that we use the Department of Labor’s FirstStep Employment Law Advisor directly from their website.
We listed down the most common employment and labor law that might be applicable to our business.
● Workplace Safety and Health – OSHA or the Occupational Safety and Health Administration requires all employers to ensure a safe workplace for their employees.
● Wages and Hours – Department of Labor’s Fair Labor Standards Act or FLSA states that employers must comply with the standards for wages and overtime pay of their workforce.
● Equal Opportunity – Law requires start-up businesses with less than fifteen employees to impose equal chances and opportunities regardless of age, race, gender, or if the employee is dealing with a disability.
Business lawyers who specialize in these kinds of fields are the one that should be handling these details. However, if we are short on funds and we can’t afford to hire a lawyer, as a business owner, we can study these guides and implement it.
Privacy
Most employees have access to sensitive information about our company, and in order to protect our business, it is recommended that we implement a regulation about privacy. The same can be said from the employers to the employees and all of the data held by the business for their employees.
Sensitive information such as credit reports, Social Security Number, address, and even personal history are protected by the law, and no employers, regardless of the nature of their business, should divulge any of this information.
Insurance
After we establish our groundwork and hire our first employee, we are now obligated by the law to get workers compensation insurance for all of our employees. Today, almost all of the states are required and must obey this law.